KC Smash 01, LLC v. Gerdes, Hendrichson, Ltd.
384 S.W.3d 389
| Tex. App. | 2012Background
- KC Smash 01, LLC is a Kansas-placed franchisee with its business in Kansas and no Texas property or operations.
- KC Smash hired a Dallas-based architectural firm to provide services for its Kansas restaurants; contract was oral and conducted by phone and email.
- No KC Smash employee traveled to Texas; firm performed most work in Texas; KC Smash paid via the firm’s Dallas office.
- The firm sued KC Smash in Dallas County for breach of contract and related claims; KC Smash filed a special appearance which the trial court denied.
- The court conducted a due process/minimum-contacts analysis; found communications and payments to Texas insufficient for jurisdiction and that the firm’s work in Texas was primarily unilateral to the firm.
- The court held KC Smash lacked minimum contacts; reversed the denial of the special appearance and rendered dismissal for lack of jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court had personal jurisdiction over KC Smash 01, LLC | KC Smash argues no minimum contacts with Texas existed. | Gerdes contends there were purposeful contacts related to the contract with Texas. | No personal jurisdiction; special appearance granted. |
Key Cases Cited
- Michiana Easy Livin’ Country, Inc. v. Holten, 168 S.W.3d 777 (Tex. 2005) (phone/email not sufficient for purposefully availing in-state jurisdiction)
- BMC Software Belgium, N.V. v. Marchand, 83 S.W.3d 789 (Tex. 2002) (de novo review of special appearance; requires fact resolution)
- PHC-Minden, L.P. v. Kimberly-Clark Corp., 235 S.W.3d 163 (Tex. 2007) (framework for specific jurisdiction and minimum contacts)
- Asahi Metal Indus. Co., Ltd. v. Superior Court of Cal, 480 U.S. 102 (U.S. 1987) (purposeful availment and due process principles)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (U.S. 1985) (minimum contacts and fair play standard)
- World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286 (U.S. 1980) (concept of not being amenable to jurisdiction lacking forum contacts)
