Jason R. Searcy, as Trustee of the Exempt Assets Trust v. Parex Resources, Inc.
496 S.W.3d 58
| Tex. | 2016Background
- Nabors (Bermudian) owned all Class A shares of Ramshorn (Bermudian), which operated oil and gas assets in Colombia; Nabors had key executives and management functions based in Houston, Texas.
- ERG (Texas) negotiated and signed an SPA with Nabors Global for Ramshorn shares; closing failed and ERG sued in Texas for specific performance and tortious interference.
- Parex Canada (Canadian) pursued the same shares through advisors at Royal Bank of Canada; Parex Canada’s subsidiary Parex Colombia (and later Parex Bermuda) negotiated and accessed diligence on a Houston-hosted virtual data room and exchanged numerous communications with Nabors’ Houston staff.
- ERG sued Parex Canada, Parex Bermuda, and Ramshorn in Texas for tortious interference and fraud; the nonresidents filed special appearances contesting personal jurisdiction.
- The trial court found jurisdiction over Parex Canada and Ramshorn but not Parex Bermuda; the court of appeals reversed as to Parex Canada; the Texas Supreme Court affirmed that Texas lacks jurisdiction over Parex Canada and Parex Bermuda but has specific (not general) jurisdiction over Ramshorn.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Texas has general jurisdiction over Parex Canada | Parex Canada’s repeated contacts with Texas (emails/calls/data-room access) make it essentially at home | Parex Canada has no offices, property, employees, bank accounts, or continuous operations in Texas | No general jurisdiction over Parex Canada |
| Whether Texas has specific jurisdiction over Parex Canada for tortious interference | Parex Canada purposefully directed numerous communications and bids into Texas and thus foreseeably interfered with ERG’s Texas contract | Parex Canada’s contacts were fortuitous/attenuated — it sought Colombian assets, not to transact or profit in Texas; communications were incidental | No specific jurisdiction over Parex Canada |
| Whether Texas has specific jurisdiction over Ramshorn (Bermudian) for fraud claims | ERG: Ramshorn (through Nabors executives) made misrepresentations in Texas | Ramshorn: limited Texas ties and deals were offshore; lack of sufficient contacts | Yes — specific jurisdiction over Ramshorn: Nabors executive (Jordan Smith) acted with actual/apparent authority and negotiated/sought sale in Texas |
| Whether Texas has jurisdiction over Parex Bermuda (the purchaser subsidiary) | ERG: Parex Bermuda ratified Parex Canada’s contacts and accepted benefits, so jurisdiction follows | Parex Bermuda: no independent Texas contacts; any ratification did not adopt the earlier allegedly tortious acts | No jurisdiction over Parex Bermuda |
Key Cases Cited
- Int’l Shoe Co. v. Washington, 326 U.S. 310 (establishes minimum‑contacts due process framework)
- Calder v. Jones, 465 U.S. 783 (specific jurisdiction where defendants expressly aimed tortious conduct at forum)
- Keeton v. Hustler Magazine, Inc., 465 U.S. 770 (forum where defendant exploited market supports jurisdiction)
- Walden v. Fiore, 134 S. Ct. 1115 (2014) (defendant‑focused minimum‑contacts; plaintiff’s forum connections cannot be attributed to defendant)
- Daimler AG v. Bauman, 134 S. Ct. 746 (2014) (general jurisdiction requires affiliations so continuous and systematic as to render defendant essentially at home)
- Goodyear Dunlop Tires Ops., S.A. v. Brown, 131 S. Ct. 2846 (2011) (limits on general jurisdiction over foreign subsidiaries)
- Michiana Easy Livin’ Country, Inc. v. Holten, 168 S.W.3d 777 (Tex. 2005) (specific jurisdiction requires defendant contacts, not plaintiff’s unilateral acts)
- Moncrief Oil Int’l Inc. v. OAO Gazprom, 414 S.W.3d 142 (Tex. 2013) (contacts that are the crux of the tort support specific jurisdiction)
- Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569 (Tex. 2007) (substantial‑connection requirement for relatedness in specific jurisdiction)
