Morgan v. Metzger Law Group
5:12-cv-01145
W.D. Tex.Apr 16, 2013Background
- Morgan and Paul are Texas attorneys; Metzger Law Group is a California firm.
- Plaintiffs contracted to have Morgan and Paul lead trial counsel in five lawsuits, including Gillan v. Safety-Kleen.
- Gillan trial occurred in California; most trial preparation occurred in Comfort, Texas.
- Plaintiffs allege fraud, misrepresentation, conversion, breach of contract, or quantum meruit.
- Defendants moved to dismiss for lack of personal jurisdiction and improper service; second motion to dismiss followed; sealing request granted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court has specific personal jurisdiction over defendants | Morgan argues defendants purposefully directed activities at Texas | Defendants claim no purposeful availment of Texas and no performance in Texas | Yes, court exercises jurisdiction |
| Whether minimum contacts exist under Texas long-arm statute | Contract and extensive Texas-directed activities show minimum contacts | Contract centered outside Texas; no obligations performed in Texas | Yes, occurs with Texas activities related to fraud claim |
| Whether the fraud claim supports jurisdiction | Fraud acts tied to fee arrangement and Texas activities | Fraud claim is a mere fee dispute | Fraud supports jurisdiction |
| Whether exercising jurisdiction is fair and reasonable | Forum has substantial interest; Texas witnesses and documents used | Burden on California firm; inconvenient | Jurisdiction reasonable under due process |
Key Cases Cited
- Moncrief Oil Int’l Inc. v. OAO Gazprom, 481 F.3d 309 (5th Cir. 2007) (mere contracting with Texas residents insufficient for jurisdiction)
- Wien Air Alaska, Inc. v. Brandt, 195 F.3d 208 (5th Cir. 1999) (unilateral Texas activity does not establish contacts)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (U.S. 1985) (minimum contacts require purposeful availment)
- Asahi Metal Indus. Co. v. Superior Court, 480 U.S. 102 (U.S. 1987) (fair play and substantial justice considerations)
- D.J. Investments, Inc. v. Metzeler Motorcycle Tire Agent Gregg, Inc., 754 F.2d 542 (5th Cir. 1985) (forum interests and convenience weigh in due process)