*1 182 47.7(a). majority be P. The does not practical legal R.App. effect have no
would
jurisdiction
why
request
no
is not moot.
respondent
explain
has
relator’s
cause
mo
these
granting
motions and
majority
any
hear these
does the
cite
cases hav
Nor
on relator’s final
have
effect
tions would
that would
any precedential
sup
value
ing
robbery.2
aggravated
for
conviction
request
relator’s
proposition
that
port
484-90;
at
Armen
360 S.W.3d
Holloway,
analysis
majority’s
not moot. The
is
is
291;
Clay,
darez,
parte
Ex
S.W.2d at
law,
contrary to
under
well-established
677;
Grocery
at
In re HEB
479 S.W.2d
appellate
which a case
moot if
*1;
Garza,
Co., L.P.,
at
2010 WL
ruling
any practical
court’s
cannot have
The “collateral con
at 727-28.
774 S.W.2d
upon
controversy. See
legal effect
Ar
yet
“capable
repetition
sequences”
mendarez,
291;
parte
Ex
S.W.2d at
to the moot
exceptions
review”
evading
677;
479 S.W.2d
In re HEB
Clay,
at
Gro
proceed
in this
apply
do
ness doctrine
L.P.,
*1;
Co.,
1790881,at
cery
2010 WL
In
State,
v.
165 S.W.3d
Pharris
ing. See
Guerra,
*1; Garza,
at
re
WL
In re Guer
(Tex.Crim.App.2005);
727-28;
S.W.2d at
Houston Teachers
Thus,
ra,
at *1.
issues
2009 WL
Assoc.,
Grocery (dismissing petition as moot mandamus relief court sought that concluded HOAGLAND, Appellant Ken any exist practical have no effect on Guerra, controversy); 2009 WL ing In re peti BUTCHER, mandamus (dismissing Butcher, at *1 Bill Kari ruling by court Partners, tion as moot because Butcher, & and OCTV practical legal would have no ef appeals LLC, Appellees. (dis fect); Garza, 774 at 727-28 No. 14-11-01074-CV. moot in criminal missing appeal case appeals any ruling by court because of Appeals Court effect). practical legal would have no Dist.). (14th Houston majority requested relator’s denies Jan. dismissing the merits than relief on rathеr Dissenting on Denial of Opinion so, doing In proceeding as moot. 26, 2013. Rehearing Feb. majority upon opinion relies for and there designated publication value. See precedential fore has no Tex. Despite potential post-con- Only at the Texas limited 488-89. Court court, convicting jurisdiction grant Appeals viction in the of Criminal has remedy felony convic- the exclusive from final corpus post-conviction felony relief habeas corpus. See tions is a writ of habeas Tex. Holloway, cases. See 488-89. 11.07; Holloway, Crim. Proc. Code Ann. art.
this case for proceedings further consis- opinion. tent
Background
Hoagland is the chairman of political a effort called the FairTax Campaign. The purpose Campaign the FairTax is to persuade the States Congress United pass replacing bill the current federal payroll income and tax structures with a consumption tax. Bill Appellees and Kari Butcher, California, both residents are general partners appellee Butcher & Butcher, general partnership with its principаl place of business California. July 7, 2009, On Bill and Kari traveled Houston, Texas made a presenta- tion on behalf of & Butcher to a non-profit organization called Americans (AFFT) for Fair during Taxation its board *6 meeting in hopes being by of hired AFFT Brenham, Andy Taylor, Appellant. for promote to Campaign. the FairTax Hoag- Houston, Boyd, William for Appel- Clark present land meeting. was at the AFFT lees. & thereafter hired Butcher Butcher. FROST, Partners, LLC, Panel Appellee consists of Justices OCTV a Cali- CHRISTOPHER, JAMISON. liability company, and fornia limited subse-
quently produce was “political formed to response direct television commercials” PLURALITY OPINION Campaign the FairTax promoting and soli- JAMISON, MARTHA HILL Justice. citing Hoagland funds for AFFT. was one issues, In OCTV, two Ken appellant Hoagland of three initial of managers and Bill challenges the order granting Hoagland, trial court’s was one of five members. in appellees’ OCTV, special appearance capacity and dismiss- his as a of manager along ing underlying We Hoag- managers case. hold with the other and members pleaded Bill), lаnd jurisdictional appel- facts that (including Op- OCTV entered into an lees acts in erating Agreement.1 committed tortious Texas and Op- Pursuant appellees erating did evidence present negat- Agreement, was entitled ing every jurisdiction. yearly basis for We thus distributions “Available reverse the trial court’s order and remand Cash.”2 cuted, although copy may during The record unexecuted been includes an it have No- However, vember Operating Agreement. Hoag- response land’s affidavit in his 2. "Available defined Cash" was as "the special appearance Operat- states that the amount of cash for distribution to available executed, ing Agreement appellees and Managers” the Members and to be distributed dispute do not this fact. The record does not first, as follows: to the members until Agreement Operating
show when the was exe- totaling had received twice distributions their their own ... into infomercial entered OCTV January On paid in alleges he was gain.”4 He also Pursuant to the AFFT. agreement Agreement Operating with the accordance agreed Agreement, OCTV-AFFT owed appellees consulting fees paid contribu- or soliciting infomercials produce him. The first Campaign. for the FairTax tions financed OCTV. be
infomercial would September sued to an escrow would be sent Contributions for breach of asserting claims Houston, Escrow funds Texas. account meruit, in- contract, fraudulent quantum for its compensate OCTV be used to fraud, ducement, seeking injunc- and and finance the infomercials. and to services appellees “from prevent relief tive wrote, develop pro- and helped [Hoag- using and wrongfully appropriating mote, in a 30-minute infom- appeared and likeness, name, proprietary and land’s] that, after OCTV alleges ercial. series of infomer- in connection with a data infomercial, Bill convinced produced medium messaging social cials and other $3,000 flat fee monthly to take a You Tube Twitter [sic] such as [sic] Avail- distributions of receiving lieu ... the ‘FairTax Cam- connection with ” Agreement Operating under the able Cash following Hoagland alleged the paign.’ might campaign infomercial because the jurisdictional facts: not be successful. made written Each of the Defendants of material 19, 2010, and oral Bill and Kari delivered May
On
(while Plaintiff was
fact to the Plaintiff
meeting
board
AFFT
report
at another
County,
in Harris
physically located
detailing the suc-
presence
Texas)
conver-
telephone
via email and
July
At its
infomercial.3
of OCTVs
cess
meetings during
in-person
AFFT “had
sations
meeting,
board
with the
years
calendar
violations of
possible
discussion on
rely upon
Plaintiff would
&
intention that
by Butcher
fundraising agreement
take action
discussion,
misrepresentations and
Bill and
such
Butcher.” After
*7
taking certain actions
or refrain from
meeting
explain
to
their
joined
Kari
County, Texas. Further-
within Harris
and contract viola-
performance
“financial
more,
Bill Butcher and Kari
Defendants
presen-
Bill and Kari’s
After
tion issues.”
Houston, Texas,
trips
made
to
that Bill and
tation,
determined
the board
Butcher,
Plain-
effort to mislead
part
of their
Kari,
Butcher &
on behalf of
tiff,
meetings with Plaintiff
by
and attended
Agreement
the OCTV-AFFT
breached
misrepresenta-
which frаudulent
compensa-
during
additional extra
“engineering]
Defen-
by
each of the
tions were
decided to terminate
The board
tion.”
Moreover, Defen-
to the Plaintiff.
Hoagland as-
dants
Agreement.
FT
OCTV-AF
money to Plaintiff
have sent
by AF FT
dants
were fired
serts
monies,
with an enforceable oral
rev-
accordance
draining ...
“inappropriately
2009
during
years
calendar
agreement
enues,
generated by
and other dollars
record,
contributions; second,
it
report
but
3. The
is not
our
percent
60
to
capital
Hoagland's
affidavit in
discussed in
managers
percent
and 40
to
members
special
appellees’
appear-
response of his
had received distributions
until the members
ance.
contributions;
totaling
capital
four times their
thereafter,
managers
percent
60
dispute
According Hoagland, the
between
percent
the members.
and 40
through
being
appellees is
resolved
AFFT and
arbitration.
performed by
and 2010 for services
a
personal jurisdiction
Whether
court has
Plaintiff,
eventually
a
but
Defendants
over nonresident
a question
dеfendant is
agreement
Collection,
law.5
Type
breached their oral
with
of
Am.
Culture
Inc.
Coleman,
(Tex.
refusing
Plaintiff
to con-
wrongfully
2002);
Res., Inc.,
Meader
Plaintiff
v. IRA
paying money
tinue
for ser-
338, 342 (Tex.App.-Houston
S.W.3d
past
vices rendered in the
and to be
[14th
2005, no
pet.).
trial
Recently,
rendered in the future.
court’s
grant
deny
decision to
or
special appear
wrongfully appropriat-
Defendants
subject
ance is
name,
to de novo
on ap
ed the
review
proprietary
likeness
peal,
exists,
but
if a
dispute
factual
data
Plaintiff
belonging to the
and re-
appellate
upon
court is called
to review the
fuse to stop the unauthorized use of
trial court’s
resolution
the factual dis
appropriation
same. The
in-
wrongful
pute as well.
Belgium,
BMC
public
cludes the
and use of data
display
Software
Marchand,
N.V. v.
within the State of Texas on You Tube
(Tex.2002); Coleman,
806;
83 S.W.3d at
public
and other
social messaging
[sic]
Meader,
Discussion
alleging
bring
of
facts sufficient to
a non
Hoagland challenges the trial
resident defendant within the terms of the
(i.e.,
grant
appearance,
court’s
of the special
long-arm
Texas
statute
for a tort
case,
claim,
underlying
dismissal of the
plaintiff
allege
and deni
the
must
that
the
al
motion
new trial.
defendant committed tortious acts
Tex-
adjudicate
par-
We do not
(Tex.App.-Houston
the merits of the
at *5
[14th Dist.]
16, 2004,
(mem.
Rather,
conducting
analysis
pet.)
op.).
ties’ claims when
Dec.
personal
jurisdiction. Bougie v. Technical
we review the
the evidence re-
claims and
Risks, Inc.,
14-03-01222-CV,
garding only
jurisdictional
No.
2004 WL
the
facts. Id.
Constr., Inc.,
the same elements.
as).
of action that share
Interior
v. Gen.
Kelly
(Tex.2010);
id.;
Glazner,
Cole- See
see also Haase
301 S.W.3d
(Tex.2001).
man,
at 807.
nonresident
S.W.3d
83 S.W.3d
the burden of ne-
assumes
defendant then
live
Hoagland alleged
petition,
in his
jurisdiction
plain-
in the
gating
all bases
appellee
part,
relevant
that each
“made
658;
Kelly, 301 S.W.3d at
tiffs allegations.
ma-
misrepresentations
written
oral
and
Coleman,
at 807. “Because the
...
in Harris
[Hoagland]
terial fact
to
scope
nature of
the
and
plaintiff defines
County,
... via email and telephone
Texas
lawsuit,
corresponding
the defendant’s
the
...
in-person meetings
and
conversations
to the
jurisdiction is tied
negate
burden to
[Hoagland]
with the
that
would
intention
plaintiffs pleading.”6
allegations in
and
rely upon
such
at 658.
Kelly,
S.W.3d
take
refrain from
certain
taking
action or
County,
actions within Harris
Texas.”
long-arm
The Texas
statute
added.)
(Emphasis
alleged
also
over a nonresident
extends
(1)
that
each
“misrepresented
part
in whole
who
a tort
or
“commits
then.-
and financial
such
abilities
condition
Prac. &
Tex. Civ.
Rem.Code
[Texas].”
that it
would
enor-
bring
was believed
17.042(2)7;
Kelly,
at
§
see also
skill,
and
expertise,
mous
and
fraudulent
659. Fraud and
inducement
to the
Campaign]
[FairTax
donated monies
(1)
misrepresentation
material
require
(2) fraudulently
Hoag-
effort” and
induced
it
by a
who knew the time was
speaker
Agree-
land
signing
Operating
into
recklessly
positive
false
it
as a
or made
alleged
ment.
further
that Bill
of the
knowledge
without
assertion
$3,000
to take a
convinced
party
that the
truth with the intent
other
(2)
monthly
fee
fee in lieu of the
to which he
rely
reliance
misrepresentation,
on the
Agree-
was
under the Operating
entitled
misrepresenta
on the
party
other
(3)
representation
ment
Bill’s
tion,
injury
based on
resulting
of the other
Bank, N.A, Hoagland
financially
benefit more
FirstMerit
party.
In re
See
(Tex.2001).
monthly
from
fee than from
taking
Fraud and
in the
separate
taking
Operating
are
the fee outlined
inducement
causes
fraudulent
plead
bringing
appel-
to
induced him in Texas to do so and that
plaintiff
6. “If
fails
facts
long-arm
within reach
defendant
lees
him to continue to act
Chair-
"hired
...,
only prove
defendant need
statute
Campaign],
man
FairTax
virtual-
[of the
write
negate juris-
in Texas
it
not live
does
ly everything
campaign
related to the
... as
Kelly,
Hoagland argues
Agreement’
nancial
appellees “made
granting
court erred in
appellees’ special written and
misrepresentations
oral
of ma-
appearance because appellees did not ne
terial fact” to Hoagland at
meetings;
gate every ground
personal jurisdic-
and,
call,
during
phone
misrepre-
Bill
Hoagland alleged
[Hoagland]
"Bill
agrеements
called
made in Houston and else-
$3,000 per
and asked him to take
where,"
[the]
month
agreement
OCTVentered into an
Specific jurisdiction
flat fee.”
is not neces-
for an
up
escrow account to be set
in Hous-
sarily
established
evidence that a nonresi-
ton;
(2) appellees
made written and oral
misrepresentations
dent defendant made
in a
misrepresentations Hoagland
via email and
single telephone call
ato Texas resident. Cit-
telephone
conversations while
Minnis,
Holdings,
rin
LLC v.
305 S.W.3d
appellees
Houston. Because we hold that
(Tex.App.-Houston
[14th Dist.]
present
did not
negate jurisdiction
evidence to
pet.) (citing
Easy
Country,
Michiana
Livin’
they allegedly
based on torts
committed in
Holten,
(Tex.
Inc. v.
meetings
Texas at the three
during
board
2005)).
But fraudulent
call,
phone
signifi-
we need not address the
made over a series of contacts to induce a
cance of these other contacts. See Horizon
party to
support per-
enter a transaction can
Inc.,
Shipbuilding,
(citing
sented to otherwise address it. Kassoff stated Hoagland to induce be fomercial would with “[a]ny Plaintiff re- communications Appellees’ special fee. accept a reduced ... garding place that did take OCTV by ex- appearance supported affidavits was by in were conducted tele- California Kari, Bill, the president and by ecuted when phone.” Kassoff admitted that Appellees OCTV, Kassoff. admit Marc Hoagland into contract com- “entered and but meetings Bill attended and Kari ..., with activity menced business & Butcher or Kari deny that Butcher or manager not a officer of was [Kassoff] [Hoagland], any representations “made OCTV.” Texas, the business transac- regarding captioned tion the basis of the Affidavits special made offered a added.) appearance be made on personal Bill did not “shall (Emphasis case.”10 performance their and con- whether this statement chal- financial certain It is unclear lenges representations were made at cerns violations” AFFT that the about contract to the all, presence Hoagland, made in the Hoagland were board. did not state that he was however, or misrepresentations, had a substantial were present meeting; at this Stockholm litiga- operative connection to the facts of the Hoagland was. and Stockholm both stated tion. [appel- that the "determined that these board AFFT, agreement lees] breached their with Hoagland responded with his own affidavit they and that had committed fraud and Stockholm, Terry and AFFT’s the affidavit engineering by breach of contract additional (1) Hoagland acting secretary. statеd that they which compensation extra were not appellees "misrepresented their abilities and prepared board entitled.” Stockholm such that it believed financial condition was minutes, they meeting and were attached as skill, they bring expertise, enormous an exhibit. and the ef- and donated monies to Appellees a supplemental thereafter filed fort"; (2) these were special reply appearance complaining and Texas; Hoagland he while was in made to (1) that and Stockholm’s affidavits (3) misrepresentations Hoag- and induced [Hoagland failed to show “how and Stock- signing Operating Agreement. land into (2) personal knowledge”; holm] obtained statement, Hoagland In at- conclusions; legal arguments and contained meeting board from tached the AFFT minutes (3) only but did raised fact issues not conclu- meeting July 2009 board which state (4) sively prove jurisdiction; contained hear- presentation that Kari made a to the Bill and say from inadmissible and from documents Butcher & "re- board on behalf of Butcher (5) meetings; misleading AFFT boаrd garding qualifications past perform- and their affidavits; regarding statements exhibits meeting. present was at the ance.” (6) conclusoiy. Appellees are ar- also appellees' misrepresen- that stated gued allege "did not that or offer meeting also induced AFFT to tations at this [fjraud alleged proof agreement. that was com- enter into the OCTV-AFFT OCTV,” Hoagland only alleged mitted ... stated that Bill and Kari further misrepresentations by Butcher & May presentation to AFFT on made another AFFT, fraud, appellees and even if committed Hoagland and Stockholm single juris- act of fraud would confer During presentation, Bill attendance. diction court. on the Texas Because we hold report provided "touting] Kari negate jurisdiction did not TV.” achievements of FairTax Stockholm appellees’ purportedly committing based on presentation "regarding stated the Texas, Kari, [Bill, fraud we do not the evi- address work and Butcher & had Butcher] presented by Hoagland appellees’ or dence being employed.” Hoagland done since аt- objections Kelly, evidence. See to that report as an tached the exhibit. Stockholm minutes, (noting pres- once prepared meeting at 659 defendant the board ents evidence that it has contacts with were attached as exhibit. respond plaintiff Bill and then can with its own stated Kari made anoth- 29, 2010, presentation July allegations). er "regarding affirm its evidence to
193
knowledge
specific
shall set forth
(affirming
trial court’s
[and]
exclusion of
as would be admissible
evidence.”
facts
nonresident’s statements that he did not
120a(3); see
Tex.R. Civ. P.
also Ennis v. have a
Texas,
substantial connection with
Loiseau,
698,
(Tex.App.-
164
703
S.W.3d
plaintiffs’ claims did not result from and
2005,
Special
pet.).
appearance
Austin
no
any
were not
related to
affiant’s activi-
“direct,
affidavits must also be
unmistak-
Texas,
ties
affiant did not have any
able,
to
unequivocal
the facts sworn
continuing
systematic
or
contacts with
Ennis,
703;
164
at
to.”
S.W.3d
see also
and affiant
not
any
did
commit
tort
Inc.,
Wright
Sage
v.
137
Eng’g,
Texas);
S.W.3d
Wright,
see also
Here, Bill, Kari, appellees and Butcher aon factual they basis because failed to dispute they & did not at- present they evidence had insufficient tended the meetings three board or that Kelly, contacts with Texas. See they made the alleged by statements S.W.3d at 659. Hoagland. Appellees any did include We next analyze appellees whether ne- regarding details what statements were gated legal by basis show- during presentations, made whether ing even if Hoagland’s alleged facts were only the statements were as part true, legally the evidence is insufficient to presentations to a or group, whether jurisdiction. See id. We thus appellees had conversations with whether Hoagland’s allegations, address if and, Hoagland, so, if content of those true, established that had suffi- Appellees merely conversations. stated cient minimum contacts with Texas sup- did not make port jurisdiction. the exercise of personal Hoagland in Texas regarding business Purposeful transaction made the cap- basis Availment. To determination, tioned case. We conclude these analyze state- make this we first unsupported legal ments are factual and “pur whether the nonresident defendants Ennis, conclusions. See 164 S.W.3d at posefully privi- availed” themselves Greenwood, Objections relating to substantive defects han v. (Tex.App.Houston pet. in affidavits are not waived the failure de- [14th nied). ruling from obtain court. McMa- *12 194 Attending the board meet- in Texas. own actions. conducting business
lege of
Rudzewicz,
not
or
ings
and
random
purposeful
v.
471 U.S.
Corp.
Burger King
2174,
appellees intended to
462, 475,
Appellees argue attending the
risdiction on
meetings
board
did not
the Texas
Hoag-
“relate to”
court.16
land’s
telephone
claims and
calls cannot
III. Traditional
Play
Notions of Fair
support personal
jurisdiction in Texas.
and Substantial Justice
fraud,
Hoagland alleged
fraudulent
in
ducement,
meruit,
quantum
and breach of
If the nonresident defendant
contract
Hoаgland’s
claims.
fraud and
has minimum contacts with the forum
fraudulent inducement claims rest on what
state, we must
then determine whether
appellees communicated or failed to com
exercise of personal jurisdiction over the
municate at the
meetings
board
in Hous
nonresident offends traditional notions of
ton and during
phone
Bill’s
call Hoag-
play
fair
justice.
and substantial
Burger
Inc.,
land. See Horizon Shipbuilding,
324
King,
2174;
In a concurring. presenting “a burden of dant bears presence of some compelling case appeal, appel- In this special-appearance render un consideration lant/plaintiff Hoagland challenges Ken Inc., Shipbuilding, Horizon reasonable.” granting special ap- trial court’s order (citing Royal, Guardian at 851 Bill pearance by appellees/defendants filed *14 231). burden, Despite this at Butcher, Butcher, Butcher Kari & Butch- (hereinafter analyze this in their er, Partners, not issue appellees did and LLC Parties”). merely They motion. For collectively the “Butcher special appearance below, consider, in spe- their a court reasons discussed factors must listed the Butcher appearances, cial Parties did jurisdic of argue but exercise did not present negating the asser- evidence fair traditional notions of tion offend spe- personal jurisdiction tion of based on justice. As discussed play substantial and Therefore, it is jurisdiction. proper cific pur concluded above, appellees have we reverse court’s order and remand the trial themselves of the Texas fo availed posely proceedings. case this for further a substantial connection rum there is and contacts with Texas appellees’ Hoagland alleges between In his fol- petition, as Moreover, claims. Hoagland’s and lows: has an obvious interest
state of Texas (cid:127) The which form the of events basis for resolving disputes a forum providing County, in Harris this suit occurred citizens, particularly disputes its involving Texas. allegedly the defendant commit which (cid:127) Hoagland is a resident Harris Coun- part or in in Texas. ted in whole a tort ty, Texas. id.; Blair Banking also D.H. Inv. see (cid:127) Each the Butcher Parties made (Tex. Reardon, 269, Corp. 97 S.W.3d written and oral
App.-Houston pet. dism’d [14th email, material fact w.o.j.). appellees hold did not show We conversations, telephone and in-person juris court’s exercise in Har- meetings while the nonresident would offend diction over ris County, Texas. of fair play notions and sub
traditional (cid:127) Bill trips and Kari Butcher made justice. stantial Texas, Houston, part effort their and Hoagland,
to mislead attended with which meetings during Conclusion misrepresentations were fraudulent appellant pleaded ju- Having concluded each of the Butcher Parties facts committed risdictional to Hoagland. in Texas and appellees acts did tortious (cid:127) money The have Butcher Parties sent jurisdiction, every basis for we negate in accordance with an en- court in granting the trial erred conclude agreement during oral calen- forceable appellees’ special appearance and dismiss- dar 2009 and 2010 services years ing reverse the trial court’s the case. We but performed by Hoagland, eventual- for proceedings remand consis- order and ly Parties their the Butcher breached opinion. tent with Hoagland by with agreement oral refusing paying to continue wrongfully FROST, J., Hoagland for services ren- concurring. money to and to al past speсific-jurisdiction dered in the be rendered under a analysis if the the future. defendant enters into a contract that has a substantial connection (cid:127) -wrongful- In the Butcher Parties and thereby purposefully di- name, ly like- appropriated rects his activities towards Texas. See ness, data, proprietary Operating, Retamco v. Republic Inc. use of stop refuse to unauthorized Co., Drilling 338-41 wrongful the same. The appropriation (Tex.2009); Zac Smith & v.Co. Otis Ele- display use of public includes Inc., vator, (Tex. pub- data within the State of Texas on 1987); Int’l, Nance Inc. v. OceanMaster messaging lic social sites. PTE, Ltd., Engineering No. 01-11-00664- (cid:127) Parties hired CV, (Nov. 2012 WL *5-8 act as of the continue to Chairman *15 (mem. 2012, pet.) Intercarga, no op.); virtually FairTax to write Campaign, Inc., Companies, S.A. v. Fritz No. 14-02- to the everything campaign, related 00297-CV, 21402583, 2003 WL at *7-8 appear well as to local and national (June (mem. 19, 2003, pet.) op.). no and media outlets to lead rallies. In of their support special appearances, Hoagland alleges breach of contract as the Butcher Partiеs submitted affidavits claim, primary alleges his and he also Butcher, Butcher, from William Kari and meruit, inducement, quantum fraudulent only Marc Kassoff. The fraud, evidence that ar- wrongful and appropriation guably speaks to the at location which Hoagland’s Though name and likeness. Hoagland performed his services is the allegations makes various following statement in the affi- contained variety against asserts claims the Parties, Kari the davits of both Butcher and Marc Kas- gravamen Hoag- Butcher soff: my knowledge “To best of performed land’s lawsuit that he vari- belief, ous all support regarding services in of the FairTax transactions Partners, LLC, place Campaign under contract with the Butch- OCTV have taken in Parties, er Butcher have Such lack proba- and the Parties California.” statements insufficient, breached paying legally their contract tive value and are even According objection by for these services.1 absent in the trial Arias, petition, Hoagland performed his these court.2 274 See Kerlin v. S.W.3d 666, (Tex.2008); Wiseman, services in and the Par- v. Butcher 668 Deacetis 14-09-00308-CV, 2731040, ties sent money under No. at WL agreement enforceable for 2 (Tex.App.-Houston July oral services *3 n. [14th Dist.] (mem. performed 13, 2010, Thus, by Hoagland. Contracting pet.) op.). no with a sending pay- Texas resident and Butcher Parties no competent submitted ments to Texas under a contradicting Hoagland’s allega- contract do evidence jurisdiction; alone he specific performed howev- tion that the services in er, may subject question defendant be in Texas. person- conducting dissenting In personal-jurisdiction opin- cases The two cited review, analysis contrary. Grupo under the case this court ion do not hold to the TMM, Perez, 357, adjudicate does not the merits of S.A.B. v. Risks, Inc., 2010, Bougie v. (Tex.App.-Houston pet. claims. See Technical de- [14th Dist.] 14-03-01222-CV, 2902508, Greenwood, nied); No. 2004 WL McMahan v. 16, (Tex. (Tex.App.-Houston App.-Houston [14th *5 Dist.] [14th Dist.] Dec. (mem. denied). op.). pet.) pet. no Thus, w.o.j.). dism’d pet. addition, Parties submit- the Butcher
In Par the Butcher granting evidence contra- erred court legally sufficient ted no allegation proper and the appearances, dicting Hoagland’s special ties’ oral into an entered trial court’s order Parties reverse the course is to of services performance agreement proceedings. for for further and remand con- of the affidavits None by Hoagland. reasons, respectfully I foregoing For contradicting allega- this tain statements judgment. in the court’s concur Butcher, Butcher,3 or Kari to Bill tion as Partners, Bill affi- LLC. Butcher’s CHRISTOPHER, J., dissenting. that Butcher & a denial davit contains into contracts Butcher entered CHRISTOPHER, Justice, TRACY the transactions regarding dissenting. suit, this statement is but the basis of insuffi- legally therefore conclusory and that the opinion concludes plurality Montgomery, Wadewitz cient. See properly ne- failed Butchers and OCTV (Tex.1997); Inc. v. every gate ground 14-11-00056-CV, Clark, 2012 WL No. that, Hoagland’s petition alleged (Tex. App.-Houston [14th at *3 therefore, not shift the burden did (mem. 2, 2012, op.). pet.) Feb. *16 facts. prove jurisdictional to his Hoagland (1) affidavits state also contain The It, well at 9-12. as as Plurality Opinion Butcher that some of the denying ments appel- all opinion, rejects concurring to representations made Parties conclusory. respectful- I affidavits as lees’ transac regarding business Texas reject disagree, that we should ly (2) case, and the basis of this tion made provide it did not affidavit because of the denying that some statements facts to its conclu- underlying any to payments Parties made sions. that transac regarding in Texas conclusory Second, that the Butch- agree are I do not These statements tion. conclusory they insufficient. Wa are so legally and therefore ers’ affidavits Inc., B.Z.B., 466; dewitz, to 951 S.W.2d at not shift the burden did 353783,at *3. plurali- 2012 WL jurisdictional facts. The prove his Hoagland’s plead- concludes ty opinion three submitted The Butcher Parties made written and appellee each ing affidavits, containing various state short —that fact to of material misrepresentations oral The insufficient. legally ments that are County in Harris sufficient legally are affidavits that portions of these —is facts,1 it re- jurisdictional yet pleading satisfy the sufficient do not suffice conclusory the Butchers’ state- jects as negating Butcher Parties’ burden any repre- not make ments that did based on assertion of regarding in Texas sentations In D.H. Blair specific jurisdiction. See made the basis of transaction the business Corp., 97 S.W.3d Banking vestment case. captioned (Tex.App.-Houston [14th argued affidavit, Hoagland, appellees at the that she 1. Unlike Kari Butcher states In her [Hoagland] appeal sign any brief on "did contracts with court and in their regarding made the basis allegations the transactions con- Hoagland's jurisdictional are Even if this captioned in Texas.” case clusory. conclusory, it does not were not statement address oral contracts. Hoagland’s pleading AFFT, contains the follow- related to but denied that the Tex- ing jurisdictional allegations:2 as visits any related to personal transac- tion with Hoagland. Bill Butcher stated
Each of the Defendants made written the following: oral misrepresentations of material I am a resident of California. At no (while fact to the Plaintiff Plaintiff was material time have I been a resident of physically located in County, Harris Texas. I do not maintain a place of Texas) via email telephone conver- business Texas. I have traveled to sations in-person meetings during Texas on business related to Americans years calendar 2009 and with the For (AFFT), Fair an organiza- Taxation intention that Plaintiff rely upon tion which party is not a to this lawsuit. such and take action Over period of approximately one or refrain from taking certain actions year I trips made several my to Texas in within Harris County, Texas. Further- capacity as President and CEO of Cor- more, Defendants Bill Butcher and Kari porate Butcher, Partner in Butcher and Houston, Texas, trips Butcher made a California General Partnership of Cor- part of their effort to mislead Plain- porations. Butcher and Butcher does tiff, meetings and attended with Plaintiff not maintain a place of business in Tex- during which fraudulent misrepresenta- as. Butcher and Butcher does not oth- tions were each of the Defen- erwise transact business in Texas. dants to the Plaintiff. Butcher and Butcher any never made plurality opinion recites other state- representations Plaintiff, Texas, re- ments frоm Hoagland’s pleading,3 but garding the business transaction made facts, these were not jurisdictional listed as the basis of the captioned case. Butcher nor does the pleading state that these and Butcher did not enter into con- *17 representations were made at the “in-per- tracts with Plaintiff regarding the trans- meetings son” in Hoagland Houston. did actions made the basis of the captioned allege not even phone that the calls to case in Texas. It never any pay- made Hoagland were made while he was in ments to Plaintiff in Texas regarding the short, Houston.4 In jurisdictional the alle- transaction made the- basis of cap- gations are generic, generic and the rebut- tioned case. It never engaged any in tal the Butchers should be sufficient to Plaintiff, business activities with in Tex- negate allegations require and Hoag- as, regarding transactions made the prove jurisdictional land to his facts. basis of Plaintiffs case. The Butchers’ affidavits acknowledged Kari Butcher made the following state- they that traveled to Texas on business ments: jurisdictional allega- made other signing Operating Agreement. Hoagland plurality correctly tions that the alleged has discount- further that Bill convinced $3,000 opinion. ed in its take monthly to a fee in lieu of the fee to which Operating he was entitled under the Agreement representation based on Bill's plurality opinion
3. The that also contends that financially would benefit more jurisdictional these are "Hoagland facts: also taking monthly from (1) taking fee than from alleged 'misrepresen- each Operating Agreement." the fee outlined in the ted their abilities and financial condition such Plurality Opinion at 190-91. bring that it was believed enor- skill, expertise, personal mous and donat- Campaign] ed monies to the age [FairTax effort’ 4.In phones, phone of cell a call can (2) fraudulently induced placed anywhere anywhere. into be and answered Constr., Inc., rior At the of California. a resident
I am (Tex.2010). time, in the temporarily I am present York, yet I have not but New State of Third, plurality’s I with the disagree York, al- of New a resident become plu The of the OCTV affidavit. analysis my residеnce change to I intend though failed rality concludes OCTV also At no material in 2011. New York Marc allegations because rebut I a resident of Texas. I been time have a that he was not affidavit stated Kassoff s business in place maintain do not Hoag- when manager or officer OCTV to Texas on traveled Texas. I have into the contract land entered for Fan- to Americans related business Kassoff lacked allegation that OCTV—an (AFFT), which organization Taxation This is a defect knowledge. lawsuit. Over party to this is not affidavit. should the form of the year I made one period approximately the affidavit objected have my capacity to Texas trips several not, Hoagland he Because did court. Part- Corporate and CEO President TMM, Grupo issue on appeal. waived this Butcher, a California ner in Butcher (Tex. Perez, 327 S.W.3d S.A.B. v. I Partnership Corporations. General 2010, pet. de App.-Houston Dist.] [14th business in transact do not otherwise Greenwood, nied); McMahan business with the Texas. I am familiar (Tex.App.-Houston [14th Partners, regarding transactions denied) (еxplaining that pet. LLC, of Plaintiffs the basis that are form, hearsay, specu such as objections never travelled I have cause of action. lation, by a failure competence, are waived with Plaintiff with to Texas to confer course, above, as noted object). Of Partners, I LLC. respect to OCTV issue, either Hoagland did not raise representations to any have never only the appeal; the trial court or on Plaintiff, the busi- regarding plurality then holds plurality has. the basis of the transaction made ness underly provide that Kassoff did not any con- sign I did not captioned case. his conclusions—but ing facts to the trans- regarding Plaintiff tracts with make conclusions. He Kassoff did not captioned of the made the basis actions communications stated facts—“OCTV’s *18 I have never made case in Texas. took place with all California regarding in Texas to Plaintiff payments This is sufficient to telephone.” or on the made the basis the the transaction Hoagland’s jurisdictional allegations. rebut engaged I have never case. captioned Plaintiff, activities with business and of The affidavits of the Butchers Texas, the transactions regarding the burden are sufficient to shift Kassoff of Plaintiffs case. made the basis jurisdictional prove to his to have reviewed all facts. We then should plurality the that these disagree I with facts, the trial jurisdictional and since the conclusory. Both affidavits affidavits are fact, findings of we judge did not issue but con- acknowledged the visits the trial court re- presumed have should Texas visits were related tended that the in favor of its disputes all factual solved business and not the to AFFT Collection, Type Am. Culture judgment. making. is I that complaints (Tex. Coleman, 801, 806 Inc. v. Butchers’ affidavits hold that the Res., Inc., 2002); IRA 178 Meader v. prove the burden to shifted 338, (Tex.App.-Houston [14th 343 Inte- S.W.3d Kelly facts. v. Gen. jurisdictional his 2005, plurality no pet.). interlocutory appeal Because the Dist.] authorized sec- by so, 51.014(a)(7) respectfully I dissent. did not do tion of the Civil Practice and Code); (Australia) Canyon Remedies Rehearing denied. Pty., Contractors, Ltd. v. Maersk Pty., J., Ltd., dissenting. 08-00-00248-CV, Christopher, No. 2002 WL 997738, 16, (Tex.App.-El May at *4 Paso CHRISTOPHER, Justice, TRACY denied) (not 2002, pet. designated pub- for of rеhearing. denial dissenting lication) (concluding interlocutory ap- that I from the denial of the motion dissent peal “mandatory” was not and trial court’s rehearing this case for all of the special appearance grant could be re- I my reasons that outlined in dis- original appeal viewed on from final judgment); sent. The Butchers have lost a valuable Golden, 301, but see Matis right early review through hyper- a (con- (Tex.App.-Waco pet.) no controverting view of their technical affida- cluding challenge that denying to order vits, the result plaintiff that the never special appearance, raised for the first jurisdictional had to his None prove facts. time on appeal from final judgment, was appearance of the cited special cases untimely parties bring because failed opinion similar, plurality as each appeal). interlocutory Ultimately, if merits of jurisdictional reached the support facts personal jurisdiction, do not issue, the plurality while does not. GJP, be case will reversed. See plurаlity holding did find that S.W.3d at 866-67. true, alleged by facts are multiple We do not want to encourage only properly that Butchers failed to issue, appeals usually of an and this is negate jurisdictional Hoag- facts in precluded under the law of the doc case land’s I petition. acknowledge that there trine. when we But do not reach are a currently no cases hold defen merits of an issue or when the facts special appearance dant can its affi amend change, may apply. the law the case appeal,1 davit after an but is some there v. Cunningham, See Virani No. 14-11- proce case law that would such (Tex. 00331-CV, 2012 WL at *6-7 Austin, dure. Dawson-Austin v. 2, 2012, App.-Houston [14th Feb. (Tex.1998) (allowing S.W.2d (mem. denied) pet. op.) law of (discussing after an amendment initial of the denial and noting case doctrine that if issues special appearance). Supreme And the change, may or facts law of the case no held that a Court has defective affidavit Harris, longer apply); City Houston v. special appearance does not convert a intо 171-72 (Tex.App.-Houston Co., general one. Exito Ltd. v. Elecs. pet.) (concluding [14th Dist.] (Tex.2004). Trejo, 142 S.W.3d *19 court of decision appeals’ affirming denial holding encourages Our an inefficient city’s plea jurisdiction first system may the Butchers be able also purposes not law of the case for of second this issue on final re-urge appeal. See interlocutory appeal from denial of plea GJP, Ghosh, Inc. 866- claim). another (Tex.App.-Austin pet.) (holding appellate special urge Supreme to review I Texas take Court to rulings appearance solely plurality was not limited this case reverse the opinion special appearance 1. This the first time that Fourteenth of a under the burden- Appeals shifting has analysis. Court of not reached the merits submit can that a defendant clarify or to special its affidavits
amended the circumstances under appearance grants a trial court where this case: court appellate and an appearance special inadequa- because that decision reverses defendant, with of the in the affidavits cies never shifted the burden result that jurisdictional prove his plaintiff facts. of G.W.
In the Matter No. 08-11-00114-CV. Appeals of Court Paso. El Feb.
