OPINION
This is an accelerated appeal from a temporary anti-suit injunction obtained by the plaintiff below, Interstate Southwest Ltd. (“ISW”), enjoining two of the defendants below, AVCO Corporation and Tex-tron Lycoming Reciprocating Engine Division of AVCO Corporation (collectively “Lycoming”), from prosecuting two suits that they filed in Pennsylvania — one at law and one at equity — against three corporate affiliates of ISW: Interstate Forging Industries (“IFI”), Citation Wisconsin, LLC, and Citation Corporation. Finding that the trial court abused its discretion in granting the injunction, we reverse the court’s order and dissolve the injunction.
Background
Lycoming manufactures piston-driven aircraft engines. Under a Master Supply Agreement (“the MSA”), signed in 1995, IFI agreed to supply all of the rough forgings Lycoming required for making crankshafts for the engines. It is undisputed that the forgings have always been produced in Navasota, Texas. Originally, the forging facility was operated as IFI’s Southwest Division. ISW contends that in October 1996, it was formed as a Texas limited partnership. 1 IFI then sold its Southwest Division to ISW under a “Bill of Sale and Assignment Assumption Agreement.” Thus, according to ISW, it has been the sole producer of Lycoming’s rough forgings since 1996. IFI allegedly ceased to produce forgings as of that time and, in 2002, was converted into Citation Wisconsin, a holding company, which is also a defendant in the Pennsylvania cases. Lycoming maintains that it did not learn of the assignment until some point in 2002.
Beginning in 1999, crankshafts in Ly-coming engines began to fail. In 2002, the Federal Aviation Administration mandated a recall of Lycoming engines to replace the defective crankshafts. Lycoming blames IFI’s forging process for the defects, and IFI and ISW blame Lycoming’s design specifications. On October 14, 2002, Ly-coming and ISW entered into a Replacement Crankshaft Production Agreement for the production of crankshafts to fulfill the recall requirements.
On May 2, 2003, ISW filed suit in Grimes County, Texas, alleging claims against Lycoming for business disparage
On May 22, 2003, Lycoming initiated suit in Pennsylvania against IFI, Citation Wisconsin, and Citation Corporation. 2 Ultimately, Lycoming brought two actions against these entities: an action at law seeking over $75 million in damages allegedly incurred as a result of the recall, and an action in equity requesting injunctive relief to force IFI to continue producing crankshafts under the MSA. In the damages action, Lycoming also alleged that Citation breached the MSA by causing its subsidiary, ISW, to file the Texas action in violation of a mediation clause. 3 Lycoming initially requested that the Pennsylvania court direct Citation to have ISW dismiss the Texas action pending mediation, but this request was subsequently withdrawn.
On May 23, 2003, a day after filing the Pennsylvania praecipe, Lycoming answerеd in the Texas litigation, asserting that ISW lacked standing to bring suit under the MSA because IFI, not ISW, was the signatory. On June 24, ISW filed an amended petition in the Texas lawsuit, claiming that IFI had assigned all of its rights and obligations under the MSA to ISW and that ISW was attorney-in-fact for
IFI on all matters pertaining to the MSA. The amended petition further requested a declaratory judgment that the assignment was valid.
On June 12, 2003, the parties to the Pennsylvania litigation entered into, and the judge signed, an Agreed Order for Preliminary Injunction, requiring IFI, Citation Wisconsin, and Citation Corporation to continue to produce all crankshaft forgings ordered by Lycoming. When forgings were not timely produced, Lycoming filed a motion for contempt in the Pennsylvania court on August 13, 2003. 4
On September 5, 2003, the Texas district judge signed a temporary restraining order requiring Lycoming to immediately cease prosecution of the Pennsylvania lawsuits. Lycoming then wrote two letters to the Pennsylvania court, essentially informing the court of the Texas TRO and stating that Lycoming did not intend to violate the TRO; the letter suggested that the Texas TRO did not restrain the Pennsylvania court from enforcing its own orders sua sponte. The Pennsylvania court then ordered the contempt proceeding to go forward as scheduled. All parties to the Pennsylvania lawsuits appeared at the hearing and announced ready, and no party objected to the proceedings based on the Texas TRO. Before any evidence was received, however, the parties agreed to a production schedule, and an agreement to that effeсt was memorialized on the record.
On September 25, 2003, after an eviden-tiary hearing, the Texas trial court entered a temporary injunction expressly prohibit
Anti-suit Injunctions
In reviewing the issuance of a temporary anti-suit injunction, we utilize an abuse of discretion standard.
Christensen v. Integrity Ins. Co.,
“Very Special Circumstances”
As stated, before an anti-suit injunction can properly issue, the requesting party must demonstrate that “very special circumstances” exist such that an injunction is necessary to prevent an “irreparable miscarriage of justice.”
See Golden Rule,
ISW’s argument is self-defeating. It is a basic tenet of American jurisprudence that before a court can affect a person’s interest in
in personam
litigation, that person must either be a party to litigation before the court or in privity to a party in litigation before the court.
See Zenith Radio Corp. v. Hazeltine Research, Inc.,
In addition to this primary argument, ISW also raises arguments related to the four categories identified by the Texas Supreme Court as appropriate situations for issuance of an anti-suit injunction,
i.e.,
(1) to address a threat to the court’s jurisdiction; (2) to prevent the evasion of important public policy; (3) to prevent a multiplicity of suits; or (4) to protect a party from vexatious or harassing litigation.
Golden Rule,
Threat to Jurisdiction
Without explaining its reasoning, the trial court specifically found that the prosecution of the Pennsylvania cases by Lycoming was a threat to its jurisdiction. ISW argues primarily that Lycoming’s motion requesting that the Pennsylvania court compel Citation Corporation to cause ISW to dismiss the Texas lawsuit constituted a direct threat to the Texas court’s jurisdiction. This request, however, was withdrawn in the Pennsylvania court before the Texas court issued its anti-suit injunction.
See Gannon,
ISW additionally asserts that Ly-coming threatened the court’s jurisdiction when it proceeded with the contempt hearing in Pennsylvania in violation of the Texas court’s TRO. Whether or not Ly-coming violated the Texas TRO might be relevant in a contempt proceeding for violation of the TRO, but it is not particularly germane to issuance of the anti-suit injunction. Although a Texas court may use an anti-suit injunction to enjoin a pаrty from pursuing litigation in a sister state, our courts have no authority to control the actions of foreign courts.
See Gannon,
Moreover, the issue of objection is moot because thе Pennsylvania contempt proceedings never reached the merits of the dispute; the parties yet again agreed to a production schedule. Nothing in the Texas TRO expressly prevented Lycoming from agreeing to a production schedule with IFI. It must also be noted that the contempt proceeding itself was based on the alleged failure of the Pennsylvania defendants to perform in accordance with an earlier agreed order regarding production of forgings. Because the production of forgings by those parties under that order is not at issue in the Texas lawsuit, the Pennsylvania contempt proceeding was not a threat to the Texas court’s jurisdiction. 12 Accordingly, we find that there was no ongoing threat to the trial court’s jurisdiction sufficient to support an anti-suit injunction.
Evasion of Public Policy
Without specifying particular policies, the trial court found that Lycoming’s prosecution of the Pennsylvania lawsuits violated important public policies of Texas. ISW argues that Lycoming violated (1) its right to access the courts, (2) the policy that favors the plaintiffs choice of forum, and (3) the policy that requires a request for injunctive relief to be filed in the county of the opposing party’s domicile.
Regarding the first contention, ISW’s right to access the courts is not impinged by prosecution of the Pennsylvania lawsuits, as evidenced by the fact that ISW has filed suit in a Texas court and is not being prevented from prosecuting that action.
See Golden Rule,
Regarding ISW’s third argument, when pleadings in a Texas lawsuit show that issuance of a permanent injunction is the principal relief sought, venue is mandatory in the county of the defendant’s domicile.
See In re City of Dallas,
Multiplicity of Suits
Although in its order the trial court mentions that there are multiple foreign lawsuits, it stops short of suggesting the anti-suit injunction was justified on that basis. Likewise, ISW does not make this argument on appeal. Typically, the multiplicity argument supports issuance of an anti-suit injunction when a party files numerous lawsuits to relitigate issues in different courts.
See, e.g., TriState Pipe & Equip., Inc. v. S. County Mutual Ins. Co., 8
S.W.3d 394, 401 (Tex.App.-Texarkana 1999, no pet.);
In re Estate of Dilasky,
Vexatious or Harassing Litigation
The trial court further found that prosecution of the Pennsylvania lawsuits is vexatious and harassing to ISW. ISW contends that these lawsuits were vexatious and harassing because Lycoming sought to force dismissal of ISW’s Texas lawsuit and to determine ISW’s rights
in absentia.
These arguments are mere reiterations of arguments previously disposed of regarding the alleged threat to the trial court’s jurisdiction and the power of the Pennsylvania court to affect ISW’s interests
in absentia.
As explained above, the request to have the Texas case dismissed had been withdrawn by the time the hearing on the anti-suit injunction commenced, and Ly-coming stated on the record that it would not renew the request. Thus, the abandoned request cannot support issuance of the anti-suit injunction.
See Gannon,
ISW further argues that Lycoming’s decision to sue entities “with no involvement in the forging process” also supports the vexatious and harassing finding. However, the only entities that could be vexed or harassed by Lycoming’s lawsuits are the parties to those lawsuits — IFI, Wisconsin Citation, and Citation Corporation. ISW cannot be vexed and harassed because it is not a party. 15
Lastly, ISW contends that Lycoming’s prosecution of contempt charges against the Pennsylvania defendants supports a finding of vexatious and harassing litigation. It was the Pennsylvania defendants themselves who agreed to produce forgings. ISW fails to explain how an attempt to compel the Pennsylvania defendants to do what they (and not ISW) agreed to do is vexing and harassing toward ISW. Furthermore, a Texas court has no power to рrevent a Pennsylvania court from enforcing its own orders.
See Baker,
Conclusion
Because the record does not support the conclusion that (1) the circumstances of this case fit within the four
Golden Rule
categories or (2) very special circum
Accordingly, the trial court’s order granting the anti-suit injunction is reversed and the injunction is dissolved.
Notes
. ISW’s general partner is Texas Steel Corрoration, and its limited partner is ISW Texas Corporation. Neither of these entities is a party in either the Texas or the Pennsylvania lawsuits; however, Texas Steel Corporation is apparently a subsidiary of Citation Corporation, which is a party to the Pennsylvania lawsuits.
. Suit was commenced by the filing of a Prae-cipe for Writ of Summons under Pennsylvania procedure, which allows a complaint to be filed later. See PA. R.C.P. 1007.
. Neither Citation Corporation nor ISW were signatories to the MSA.
.ISW maintains that any failure to meet scheduled production was the result of equipment malfunctions and was not limited to forgings for Lycoming.
. "Comity” has been defined as "a principle of mutual convenience whereby one state or jurisdiction will give effect to the laws and judicial decisions of another.”
Gannon v. Payne,
.
See also Am. Int’l Specialty Lines Ins. Co. v. Triton Energy Ltd.,
. Issue preclusion, or collateral estoppel, precludes relitigation of particular issues already resolved in a prior litigation, and it requires that (1) the facts sought to be litigated in the second action were fully and fairly litigated in the first action, (2) those facts were essential to the judgment in the first action, and (3) the party against whom the doctrine is asserted was a party, or in privity to a party, in the first action.
Sysco Food Servs., Inc. v. Trapnett,
. There is some suggestion in the briefing and the record that ISW might be in privity with IFI because IFI assigned all of its rights and obligations under the MSA to ISW and that under the assignment agreement ISW became attorney-in-fact for IFI regarding all matters pertaining to the MSA. There is also a suggestion that Citation Corporation is an "indirect corporate parent” of ISW, although there is no explanation of this relationship or how it could give Citation control over ISW’s production of forgings, through piercing of the corporate veil or otherwise. We need not decide any of the privity or corporations questions presented by these circumstances because, as explained above, if ISW is in privity with any of the Pennsylvania defendants then its interests are represented in the Pennsylvania lawsuits, but if it is not in privity with any of the Pennsylvania defendants then its interests are not being tried in the Pennsylvania lawsuits. If IFI and Citation Corporation wish to contend that they are not proper parties but ISW is a proper party, they can do so in the Pennsylvania lawsuits. That issue is beyond the scope of the Texas lawsuit before us. Whether or not the elements of claim or issue preclusion can be met under these facts is likewise beyond the scope of this appeal. See infra note 9.
. Furthermorе, the possibility of inconsistent judgments in the Texas and Pennsylvania lawsuits does not in and of itself warrant an anti-suit injunction by either court.
See Gannon,
. Indeed, under ISW’s argument, its request for an anti-suit injunction аgainst Lycoming in Texas would have been sufficient grounds for the Pennsylvania court to grant such an injunction in the Pennsylvania litigation. This would turn pursuit of an anti-suit injunction into a completely circular and potentially self-defeating endeavor.
. The underlying order at issue in the Pennsylvania contempt proceeding, the motion for contempt, and the originally scheduled hearing date for the contempt proceeding all predate issuance of the Texas TRO. The Texas TRO was obtained after the Pennsylvаnia court sua sponte rescheduled the hearing but before the hearing actually took place.
. ISW asserts that the original agreed order included a provision stating that the Pennsylvania defendants had to produce forgings only to the extent they were required to do so under the MSA. ISW then argues only it and not the Pennsylvania defendants were still required under the MSA to produce forgings. If these two assertions are true, they could perhaps be used as a defense against contempt proceedings in Pennsylvaniа, but they are not grounds for issuance of a Texas anti-suit injunction. We further note that ISW’s interpretation of the agreed order is questionable. The order actually states: "[IFI, Citation Wisconsin, and Citation Corporation] shall produce and provide all crankshaft forgings ordered by [Lycoming] pursuant to the [MSA], Nothing in this Order shall be construed to expand, limit or amend the provisions of the [MSA].”
.The open courts provision of the Texas Constitution is traditionally interpreted as creating three guarantees: (1) courts must аctually be open and operating, (2) citizens must have access to those courts unimpeded by unreasonable financial barriers, and (3) meaningful legal remedies must be afforded
. The discussion of this issue assumes without deciding that ISW is ultimately correct that the claims against the Pennsylvania defendants are similar to claims Lycoming would bring against ISW. If the claims are not the same, then an anti-suit injunction would clearly be improper.
See Christensen,
. A persistent theme of ISW’s arguments, as specifically expressed in oral argument, is that the anti-suit injunction is justified by “real life reality.” Unless "real life reality” comports with Texas law and common logic, it cannot support the injunction. We are not privy to the parties litigation and business strategies, nor is it our place to inquire. We just apply the law.
