Lead Opinion
OPINION
Rаymond B. James appeals from the trial court’s order sustaining the special appearance in favor of Illinois Central Railroad Company (Illinois Central). In eight points of error, James contends personal jurisdiction over Illinois Central in Texas is proper because inter alia: (1) minimum contacts analysis has been satisfied; (2) Illinois Central waived its right to challenge jurisdiction; and (3) territorial jurisdiction over Illinois Central was satisfied when its agent was served with process while conducting business in Texas. We affirm the trial court’s order.
Facts
On January 9, 1994, James suffered personal injuries while performing his duties as a railroad switchman for Illinois Central. The accident occurred in Memphis, Tennessee, which is also the permanent residence of James. Illinois Central is a Delaware corporation with its principal office located in Chicago, Illinois. Illinois Central has one office in Houston, Texas that serves as the location for one of its national accounts managers, Robert T. Hanly.
James filed a personal injury suit in Harris County, Texas on January 9, 1994. Illinois Central subsequently filed a special appearance to contest the court’s in personam jurisdiction. After a hearing, the trial court entered an order granting Illinois Central’s special appearance. James requested findings of fact and conclusions of law and brought this appeal to contest the trial court’s order.
Standard of Review
On appeal from a special appearance, we review all evidence in the record to determine if Illinois Central (the non resident defendаnt) negated all possible grounds for personal jurisdiction. Kawasaki Steel Carp. v. Middleton,
Findings of fact and conclusions of law are binding upon the appellate court unless challenged on appeal. Linton v. Airbus Industrie,
Personal Jurisdiction
In points of error one and two, appellant challenges the correctness of the trial judge’s legal conclusions drawn from facts that are unchallenged on appeal. A court may assert personal jurisdiction over a non resident defendant if: (1) the requirements .of the Texas long-arm statute are fulfilled and (2) the exercise of jurisdiction complies with the due process clause of the Fourteenth Amendment tо the United States Constitution. CSR Ltd. v. Link,
In addition to other acts that may constitute doing business, a nonresident does business in this state if the nonresident:
(1) contracts by mail or otherwise with a Texas resident and either party is to perform the contract in whole or in part in this state;
commits a tort in whole or in part in this state; or
recruits Texas residents, directly or through an intermediary located in this state, for employment inside or outside this statе.
In this case, Illinois Central leases one office in Texas staffed by Mr. Hanly, a Texas resident. Hanly acts as a liaison between Illinois Central and its petroleum and chemical customers located in Alabama, Arizona, Louisiana, Oklahoma, and Texas. Specifically, Hanly coordinates the day-to-day services rendered by Illinois Central to its customers in this five-state region. These services include scheduling the time and rate of railway transportation. Hanly’s only contracting authority is related to the transportation rate that is charged by Illinois Central to its customers. Based on Hanly’s employment in Harris County and his duties, we conclude as a matter of law that Illinois Central is “doing business in Texas” as that standard is understood under the Texas long-arm statute.
Further, the Texas Supreme Court has interpreted the broad language of section 17.042 “to reach as far as the federal constitutional requirements of due process will allow.” CSR Ltd.,
1. Minimum Contacts
A non resident defendant has sufficient minimum contacts if it has purposely availed itself of the benefits and protections of conducting business within that state. CSR Ltd.,
General jurisdiction is proper when the defendant’s contacts are continuous and systematic. CSR Ltd.,
Illinois Central’s argument supporting the lack of minimum contacts in Texas is focused on the following facts: (1) the accident is not related to its business transactions in Texas; (2) Illinois Central is a foreign corporation that is not required to maintain an agent for service of process in Texas; (3) Illinois Central has only one office staffed by one person in Texas; (4) Hanly lacks authority to contractually bind Illinois Central; and (5) Illinois Central does not have a bank account in Texas. However, Illinois Central does not dispute that it solicits business in Texas. As
In CMMC v. Ambrocio Salinas,
Similarly, in CSR Ltd. v. Link, the Texas Supreme Court denied general jurisdiction over an Australian corporation.
Further, in General Electric Co. v. Brown & Ross Int’l Distrib., Inc.,
More recently, this Court upheld a trial court’s finding of general jurisdiction over a California corporation with no agents nor рlace of business in Texas. Gator Hawk, Inc.,
By conducting business in a permanent office in Harris County, Texas, Illinois Central has availed itself of the benefits and protections offered by the laws of this state. Moreover, by maintaining an office and an agent that solicits business from this state, Illinois Central has purposely established minimum contacts such that it could reasonably foresee being sued in Texas. We hold as a matter of law that Illinois Central had
2. Fair Play and Substantial Justice
Once it is established that the non resident defendant maintained substantial minimum contacts with the forum state, we then must determine whether the exercise of personal jurisdiction would comply with concepts of fair play and substantial justice. Guardian Royal Exch. Assur. Ltd. v. English China Clays, P.L.C.,
It is a rare instance when jurisdiction will not comport with fair play and substantial justice once the minimum contacts analysis has been satisfied. Guardian Royal Exch.,
Thus, Texas, by subjecting Illinois Central to its court system, would not be protecting its citizens from the potential future actions of Illinois Central. Although Texas has an interest in providing a cost effective means of producing evidence and witnesses, the record indicates that all the evidence and witnesses are in Tennessee. See Lujan v. Sun Exploration & Prod. Co.,
We conclude that the assertion of personal jurisdiction over Illinois Central would offend concepts of fair play and substantial justice.
Jurisdiction by Consent or Waiver
In point of error three, James contends that even though Illinois Central filed a special appearance, it nevertheless consented to jurisdiction by defending other lawsuits in Texas. James argues that Illinois Central’s involvement in thelke Ford and Newsome cases is evidence that it has consented to the jurisdiction of Harris County courts. In his appellate brief, James cites Perkins v. Benguet Consolidated Mining Co.,
The Court in Perkins did allow personal jurisdiction over a non resident corporation, but James’s reliance on Perkins is misplaced. Rather than basing jurisdiction
Article 8.01 of the Texas Business Corporations Act provides that a foreign corporation is not considered to be conducting affairs in this state as a rеsult of maintaining or defending any action or suit to which it is a party. Tex. Bus. CoRp. Act Ann. art. 8.01 (Vernon Supp.1998). Regardless of its involvement in other litigation, a court’s exercise of personal jurisdiction over an unlicensed non resident corporation depends upon minimum contacts analysis and considerations of fair play and substantial justice. See Malaysia British Assur. v. El Paso Reyco, Inc.,
Finding no basis that Illinois Central has consented to the jurisdiction of Texas courts regarding this case, we overrule James’s third point of error.
Territorial Jurisdiction
In his fourth point of error, James contends he sеcured territorial jurisdiction over Illinois Central by serving its agent, Hanly, in Harris County. As authority for his proposition, James cites Burnham v. Superior Court of California,
Also, James refers us to Acacia Pipeline Corp. v. Champlin Exploration, Inc.,
Further, we refuse to extend the logic of Burnham to the facts before this Court. First, Burnham involved a non resident individual, and the Court specificаlly omitted any reference of personal jurisdiction regarding corporations. Burnham,
[u]nlike an individual its “presence” without, as well as within, the state of its origin can be manifested only by activities carried on in its behalf by those who are authorized to act for it.... For the terms “present” or “рresence” are used to merely symbolize those activities of the corporation’s agent within the state which courts will deem to be sufficient to satisfy the demands of due process.
In his fifth point of error, James contends the trial court erred in granting Illinois Central’s motion to quash the subpoena of Hanly. Specifically, James claims the testimony of Hanly, at the special appearance, was necessary so James could prove Hanly’s involvement and lack of credibility regarding his authority as nationаl accounts manager of Illinois Central. James further contends he needed to examine Hanly regarding the differences in deposition testimony he gave between 1990 and 1995. James alleges these inconsistencies in testimony support a finding of personal jurisdiction. The trial court heard the motion at the beginning of the special appearance and took it under advisement until the close of the proceeding. At the end of the hearing, the trial judge granted the motion to quash, finding that the testimony of Hanly was not nеeded.
In light of the totality of the evidence presented at the special appearance, any error by the lower court was harmless. Regarding the testimony of Hanly, counsel for James admitted at the special hearing, “I probably have 99 percent of what I need attached.” Counsel also stated that Hanly’s testimony would be “duplicative of some of the deposition testimony.” It was not an abuse of discretion for the trial judge to omit evidence that was merely cumulative. Gator Hawk,
In his sixth point of error, Jаmes contends the trial court erred by refusing to grant his motion for reconsideration. James alleges the trial judge applied the wrong legal standard at the first special appearance, refused to reassess his analysis, and faded to consider additional evidence.
Approximately one month after the initial hearing, the trial judge allowed further argument regarding his earlier order which granted Illinois Central’s special appearance. The motion for reconsideration presented the triаl judge with no new facts or issues. As a result, the trial judge did not abuse his discretion in denying the motion for reconsideration, and we overrule James’s sixth point of error.
In points of error seven and eight, James argues the trial court misapplied the facts and entered erroneous conclusions of law. In previous analysis, we reviewed the pertinent facts in the record, as well as the conclusions of law based upon those facts. Conclusions of law are freely reviewable, and regardless of the lower court’s аnalysis, this Court has found that jurisdiction over Illinois Central would not comport with standards of fair play and substantial justice. We overrule James’s seventh and eighth points of error.
Finding no reversible error in the trial judge’s ultimate conclusion of law that no jurisdiction exists as to Illinois Central, we affirm the order of the trial court.
ANDELL, J., dissenting.
Notes
. For other cases in which courts noted the lack of an office, agent, or the solicitation of business as determinative to the exercise of in personam jurisdiction, see National Industrial Sand Ass'n v. Gibson,
. Illinois Central has defended other lawsuits in Texas including Newsome v. Illinois Central R.R., Cause No. 90-S-03309-C, filed in Matagorda County, Texas and Ike Ford v. Illinois Central R.R., No. 92-041848, filed in Harris County, Texas..
. As explained above, James suffered personal injuries in Tennessee while performing his duties as a switchman. Illinois Central’s only conduct in Texas involves the employment of Hanly, an accounts manager.
.The Dissent argues that this case would have been more appropriately addressed under forum non сonveniens. The doctrine of forum non con-veniens is a procedural rule which does not determine jurisdiction but only determines that jurisdiction which exists should not be exercised where another forum, also having jurisdiction, is better able to act. Direct Color Services, Inc. v. Eastman Kodak Co.,
. The rights and duties of foreign corporations authorized to conduct business in Texas are set out in articles 8.01-, 18 of the Texas Business Corporations Act. Tex. Bus. Corp. Act Ann. art. 8.01, 8.02, 8.03 (Vernon Supp.1998), art. 8.04 (Vernon 1980), art 8.05, 8.06 (Vernon Supp. 1998), art 8.07, 8.08 (Vernon 1980), art 8.09 (Vernon 1980 and Supp.1998), art 8.10 (Vernon 1980) art. 8.13, 8.14, 8.15 (Vernon Supp.1998), art. 8.16 (Vernon 1980 and Supр.1998), art 8.17, 8.18 (Vernon 1980).
Dissenting Opinion
dissenting.
I respectfully dissent from my learned colleagues in this case. I would hold that Illinois Central has failed to meet its burden in negating personal jurisdiction based on the theory of general jurisdiction.
The issues briefed and presented to this Court concern the trial court’s power to exercise personal jurisdiction over Illinois Central. Under the facts of this ease, the trial court and the Majority have found that the trial court lacks such power. I disagree. In addressing this case, the Majority has attempted to aрply convenience factors into a personal jurisdiction analysis, thereby reach-
Fair Play and Substantial Justice
Once it has been determined that a nonresident defendant purposefully established minimum contacts with the forum state,
The minimum contacts analysis now encompasses many of these fairness considerations, and as such, it has become less likely that the exercise of jurisdiction will fail a fair play analysis. Schlobohm v. Schapiro,
The rare cases have generally been restricted to those involving international defendants. See, e.g., Asahi Metal Indus. Co. v. Superior Court,
Discussion
The Majority states that although the burden on Illinois Central in defending this lawsuit would be minimal, all other factors indicate that personal jurisdiction over Illinois Central would be unreasonable. The Majority has attempted to make the lack of interest Texas would have in adjudicating the dispute a determinative factor in finding the exercise of jurisdiction to be unreasonable. The Majority reasons that because James’s injury has no relation to Illinois Central’s activities in Texas, subjecting Illinois Central to our court system would not protect our citizens from potential future actions of Illinois Central. I respectfully disagree.
This is not a case like Asahi, Guardian Royal, or Juarez. This case concerns an Illinois railroad which has substantial contacts with Texas. As indicated by the Majority’s opinion, Illinois Central generates millions of dollars worth of business in Texas. In 1990, Illinois Central generated $75 million of business in Harris County. Illinois Central operates trains and tracks in Texas. Illinois Central maintains an office in Harris County which employs an agent of Illinois Central who solicits business from the citizens of Texas. In addition, Illinois Central has defended other lawsuits in Texas.
The burden on Illinois Central in defending this suit is minimal. In fact, the nature and extent of Illinois Central’s contacts with Texas justify a conclusion that Illinois Central should expect to be called into our courts. See Project Engineering USA Corp. v. Gator Hawk, Inc.,
Conclusion
Based on the facts of this ease, I would find that having to defend a lawsuit in this state based on an event that took place outside the stаte by a party who has so clearly availed itself of the benefits and protections offered by this state, does not offend notions of fair play and substantial justice.
Accordingly, I would hold the trial court erred in granting Illinois Central’s special appearance.
. The issues presented by this case are more properly addressed through a forum non conve-niens analysis, but because of the trial court decision, we will only address the personal jurisdiction issues.
. I am in agreement with the Majority’s finding that Illinois Central has sufficient minimum contacts with Texas to support jurisdiction.
. In Gator Hawk, this Court stated:
The nature and extent of appellants’ contacts with Texas justify a conclusion that appellants should expect to be called to our courts. Nothing in the record indicates that litigation in a Texas court would be excessively burdensome or inconvenient to appellants. Litigation in Texas has provided both sides with benefits and protection of our laws. We hold that the exercise of jurisdiction over appellants by a Texas court did not offend traditional notions of fair play and substantial justice.
Project Engineering USA Corp. v. Gator Hawk, Inc.,
