Klinge v. KBL Associates, LLC, 5:20-cv-00470

Plaintiff Brad Klinge, a Texas resident, sued under the FLSA alleging unpaid overtime for work as a Business Consultant from Aug 2019–Mar 2020; KBL Associates, LLC (Tennessee LLC) and individual Kimberly Leatherwood were named defendants.
KBL conceded personal jurisdiction in Texas; Leatherwood (Managing Partner) moved to dismiss for lack of personal jurisdiction and submitted an affidavit denying meaningful Texas contacts.
Leatherwood’s affidavit: resides in Tennessee, never traveled to Texas for KBL business, did not direct Plaintiff’s day-to-day work, periodically reviewed/approved time entries in Tennessee, did not handle payroll, and spent minimal time on Texas matters.
Plaintiff’s pleadings allege Leatherwood manages KBL’s day-to-day operations and set pay policies that allegedly caused the FLSA violation, but he submitted no jurisdictional evidence or discovery.
Plaintiff worked from home in Texas, had no Texas clients, and was paid by KBL (not Leatherwood); the court analyzed only specific personal jurisdiction over Leatherwood.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Texas has specific personal jurisdiction over Leatherwood for FLSA claims	Leatherwood, as managing partner and joint employer, directed pay policies and thus purposefully availed herself of Texas by employing and injuring a Texas employee	Leatherwood lacked sufficient contacts with Texas—her actions were in Tennessee, she did not hire or pay Plaintiff, and any Texas effects were incidental	Dismissed for lack of personal jurisdiction; Leatherwood’s contacts with Texas were insufficient for specific jurisdiction; claims against her dismissed without prejudice
Whether potential individual FLSA employer liability alone establishes jurisdiction	Plaintiff: employer status makes jurisdiction proper where employment-related injury occurred in forum	Leatherwood: employer liability under FLSA does not automatically create jurisdiction absent her personal forum contacts	Held: Potential FLSA liability alone is insufficient; individual must have minimum contacts with forum independent of corporate acts

Sangha v. Navig8 ShipManagement Private Ltd., 882 F.3d 96 (5th Cir. 2018) (federal due-process standard for specific and general jurisdiction; Texas long-arm analysis collapses into due-process inquiry)
Walden v. Fiore, 571 U.S. 277 (U.S. 2014) (specific-jurisdiction analysis focuses on defendant’s contacts with the forum, not plaintiff’s connections)
Pervasive Software, Inc. v. Lexware GmbH & Co., 688 F.3d 214 (5th Cir. 2012) (plaintiff bears burden to make prima facie showing of jurisdiction; court accepts uncontroverted allegations)
Calder v. Jones, 465 U.S. 783 (U.S. 1984) (effects test for jurisdiction requires defendant-directed conduct toward forum producing the alleged injury)
Donovan v. Grim Hotel Co., 747 F.2d 966 (5th Cir. 1984) (individual corporate officer with substantial, direct Texas contacts may be subject to jurisdiction for employment practices in Texas)
Carmona v. Leo Ship Management, Inc., 924 F.3d 190 (5th Cir. 2019) (employer who knowingly places employees in forum may reasonably anticipate being haled into court for torts committed there)
Panda Brandywine Corp. v. Potomac Elec. Power Co., 253 F.3d 865 (5th Cir. 2001) (effects test does not replace requirement of defendant’s minimum contacts demonstrating purposeful availment)