OPINION
A nonresident attorney and her nonresident law firm bring this interlocutory appeal from the trial court’s order denying their joint special appearance in a lawsuit filed against them by clients living in Texas. We reverse the trial court’s order and remand with instructions to the trial court
I. Factual and Procedural Background
Appellant Susanne M. Weldon-Francke is a New Hampshire attorney. She resides in New Hampshire and practices law in Laconia, New Hampshire with appellant Normandin Cheney & O’Neil, PLLC, a New Hampshire law firm (the “Law Firm”). Appellees Seymour and Carmen Fisher are Texas residents who, at the time of the events made the subject of their claims, owned a second home in New Hampshire.
In conducting a personal-jurisdiction analysis, we review the claims in question and the evidence regarding the jurisdictional facts, but we do not adjudicate the merits of the claims.
Bougie v. Technical Risks, Inc.,
No. 14-03-01222-CV,
In their live petition in the trial court, the Fishers make the following allegations:
• On or about August 5, 1998, the Fishers sought legal advice from Weldon-Francke. The Fishers were concerned about their potential federal estate tax liability. They sought legal and tax advice regarding a possible transfer of their New Hampshire home to their two sons. The Fishers retained the services of the Lawyers.
• Weldon-Francke was made aware that the Fishers were Texas residents.
• After discussing the Fishers’ desires and examining documents, Weldon-Francke prepared a trust document entitled the “Fisher Realty Trust.” Weldon-Francke also prepared the deed by which title to the Fishers’ New Hampshire home would be transferred to the trust. The beneficiaries of the trust were the Fishers and their two sons.
• Weldon-Francke gave the Fishers legal advice concerning the trust and their New Hampshire home. The Lawyers charged the Fishers for the legal services provided, and the Fishers paid these fees.
• The Lawyers gave the Fishers erroneous legal advice and failed to achieve their stated goal of minimizing estate tax liability, and the Lawyers are liable for negligence, negligence per se, and breach of fiduciary duty.
• Weldon-Francke breached her fiduciary duty (1) by not disclosing to the Fishers that the legal advice she had given them was flawed and (2) by sending them a December 2, 2005 letter in which she asserted that the trust did achieve the goal of avoiding federal estate taxes. The Fishers did not solicit the opinions contained in this letter.
• The Fishers and their Texas counsel made written inquiry to Weldon-Francke, requesting an explanation of her December 2, 2005 letter. Weldon-Francke further breached her fiduciary duty by failing to admit that she had erred years earlier and by trying to obscure her alleged acts of malpractice in two more phone conversations and in a second letter to the Fishers dated February 9, 2005. The two letters constitute negligent or intentional misrepresentations that proximately caused the Fishers damages.
In April 2006, the Fishers filed suit against the Lawyers in the trial court be
II. Standard op Review
Whether the Lawyers are subject to personal jurisdiction in Texas is a question of law subject to de novo review.
See BMC Software Belgium, N.V. v. Marchand,
III. Issues and Analysis
In three related issues, the Lawyers challenge the trial court’s implied findings of specific and general jurisdiction and its denial of the joint special appearance. More specifically, the Lawyers contend that the evidence is legally insufficient to support the trial court’s implied findings of specific jurisdiction and general jurisdiction. 1 Finally, they contend that exercising personal jurisdiction over them in a Texas court would offend traditional notions of fair play and substantial justice.
The Texas long-arm statute governs a Texas court’s exercise of jurisdiction over nonresident defendants. Tex. Civ. PRac. & Rem.Code Ann. §§ 17.041-045 (Vernon Supp.2005). It allows a court to exercise personal jurisdiction as far as the federal constitutional requirements of due process will permit.
See BMC Software,
Specific jurisdiction exists when the claims in question arise from or relate to the defendant’s purposeful contacts with Texas.
Am. Type Culture Collection Inc. v. Coleman,
General jurisdiction is established if the defendant has continuous and systematic contacts with the forum, whether or not the defendant’s alleged liability arises from those contacts.
PHC-Minden, L.P. v. Kimberly-Clark Corp.,
A. Did the trial court err in concluding that it could exercise personal jurisdiction over the Lawyers based on specific jurisdiction?
In support of their joint special appearance, the Lawyers submitted an amended affidavit in which Weldon-Francke testified in pertinent part:
• Weldon-Francke is not licensed to practice law in Texas. Her primary area of practice and concentration is estate planning and probate. She is a partner and member of the Law Firm. The Law Firm has one office, which is located in Laconia, New Hampshire.
• On July 9, 1998, Weldon-Francke received a telephone message from Seymour Fisher stating that he would like to have a trust created. Weldon-Francke returned the phone call to a New Hampshire telephone number.
• On July 13, 1998, Weldon-Francke met with the Fishers in her law office in New Hampshire to discuss legal matters relating to the Fishers’ summer home, which is located in San-bornton, New Hampshire.
• On or about July 14, 1998, Weldon-Francke drafted the trust instrument and schedule of beneficiaries. In addition, Weldon-Francke requested title work and ordered an appraisal of the Fishers’ Sanbornton residence.
• On July 28, 1998, Weldon-Francke reviewed the appraisal report. On July 29, 1998, Weldon-Francke reviewed the title report. On July 31, 1998, she revised the trust instrument and schedule of beneficiaries. On the same day, she sent a draft of the trust instrument to the Fishers at a New Hampshire address.
• On August 5, 1998, Weldon-Francke again met with the Fishers at her law office in New Hampshire, and they executed the deed and the trust instrument.
• On August 6, 1998, the Law Firm sent the Fishers an invoice for fees and expense in the amount of $1,088. The invoice was mailed to the Fishers at a New Hampshire address. On August 11, 1998, the recorded trust instrument and the recorded deed were mailed to the Fishers at a New Hampshire address.
• Because the Fishers had not previously paid their bill in full, a supplemental invoice was sent to them on September 28, 1998, at a New Hampshire address.
• From the fall of 1998 to the fall of 2008, the Lawyers had no further contact with the Fishers. In September 2003, the Fishers placed telephone calls to the Law Firm with questions about the Fisher Realty Trust. According to Weldon-Francke’s notes, the Fishers placed the phone calls from their Sanbornton residence. In November 2005, Seymour Fisher spoke with Weldon-Francke’s assistant and requested that a copy of the trust document be sent to the Fishers’ address in Texas.
• On December 2, 2005, Seymour Fisher telephoned Weldon-Francke to inquire as to the identification of the trust property in the trust document. Weldon-Francke reminded him that there was a separate, recorded deed and Weldon-Francke mailed him another copy of the deed. Weldon-Francke received an email irom Seymour Fisher several days later thanking her for sending the deed.
• On January 5, 2006, Weldon-Francke received a facsimile from the Fishers’ Texas counsel posing a number of questions about the trust. On January 9, 2006, Weldon-Francke requested authorization from the Fishers to discuss any matters pertaining to the trust with their Texas counsel.
• Approximately one week later, Weldon-Francke received authorization from the Fishers to discuss the trust and matters related thereto with their Texas counsel. On January 24, 2006, Weldon-Francke spoke on the telephone with the Fishers’ Texas counsel regarding the trust.
• Weldon-Francke sent to the Fishers’ Texas counsel by facsimile a letter dated February 9, 2006, in response to his letter of January 5, 2006.
• The creation of the trust took less than two months during July and August 1998.
• Weldon-Francke has never been to Texas. She has never advertised in Texas or engaged in any affirmative actions to promote business in Texas. She has never represented any Texas residents in litigation or transactions in Texas. She never had any contact with the Fishers in Texas during the time period relevant to the creation of the trust.
In response to the special appearance, the Fishers submitted an affidavit from Seymour Fisher in which he testified to the truth of most of the allegations of the Fishers’ petition (summarized above). Seymour Fisher also added that he had called Weldon-Francke’s office in December 2005, requesting certain documents. He stated that, in response to this request, Weldon-Francke sent the requested documents along with her one-page letter dated December 2, 2005. The Fishers also submitted an affidavit from the attorney representing them in this case. As relevant to the specific-jurisdiction analysis, the Fishers’ attorney testified as follows:
• He reviewed all of the documents regarding the creation of the trust and the transfer of title to the trust. He also reviewed Weldon-Francke’s December 2, 2005 letter.
• He wrote a letter to Weldon-Francke requesting that she provide the legal and tax analysis that supported the transaction.
• In a subsequent telephone conversation, Weldon-Francke asserted that she had handled the transaction properly and that her analysis had been sound. In her subsequent letter to the Fishers in Galveston, Texas, Weldon-Francke again defended the manner in which the transaction was handled.
Although there are conflicts in the evidence regarding the liability issues, there is no conflict in the evidence regarding the specific-jurisdiction issue. While in New Hampshire in 1998, the Fishers retained the services of a New Hampshire lawyer, who is a partner in a New Hampshire law firm. Under this representation, the New Hampshire lawyer drafted documents creating a New Hampshire trust and transferring title to the Fishers’ New Hampshire home to that trust. The Fishers signed these documents in New Hampshire. The New Hampshire lawyer sent invoices to the Fishers at a New Hampshire address, and the Fishers sent payment of these invoices to the New Hampshire law firm’s New Hampshire address. This transaction was consummated in New Hampshire in 1998, and all of the Lawyers’ contacts with the Fishers during this period occurred in New Hampshire. Five years later, the Fishers called the Law Firm from their New Hampshire home with questions about the trust. Two years after these calls, Seymour Fisher called Weldon-Francke’s office to request certain documents. In response to this request, Weldon-Francke sent the requested documents along with a one-page letter to the Fishers in Texas. In this letter, Weldon-Francke describes her understanding of the 1998 transaction effected during her representation of the Fishers. A month later, in January 2006, the Fishers’ Texas counsel sent a letter to Weldon-Francke propounding thirteen questions regarding the trust. In response, Weldon-Francke spoke with the Fishers’ Texas counsel on the phone and then sent a letter to him responding to these questions.
The Fishers assert that Weldon-Francke knew that they were Texas residents. However, contracting with and accepting payment from Texas residents for services performed in New Hampshire is insufficient to support specific jurisdiction.
See IRA Resources, Inc. v. Griego,
Though the Fishers allege tort claims based on these phone calls and letters, the allegation of a tort is not sufficient to overcome the Lawyers’ lack of purposeful contacts.
See Michiana Easy Livin’ Country, Inc.,
Based upon the undisputed evidence, we conclude the evidence is legally insufficient to support the trial court’s implied finding that it could exercise personal jurisdiction over the Lawyers based on specific jurisdiction. Accordingly, we sustain the Lawyers’ first issue.
B. Did the trial court err in concluding that it could exercise personal jurisdiction over the Lawyers based on general jurisdiction?
General jurisdiction exists when a defendant has continuous and systematic contacts with Texas so that Texas courts may exercise personal jurisdiction over the defendant even if the plaintiffs claims did not arise from or relate to the defendant’s activities purposefully directed to Texas.
See Helicopteros Nacionales de Colombia, S.A.,
• Weldon-Francke has never been to Texas. She has never advertised in Texas or engaged in any affirmative actions to promote business in Texas. She has never represented any Texas residents in litigation or transactions in Texas. She is not licensed to practice law in Texas.
• Weldon-Francke does not maintain a place of business, office, or facility of any type in Texas, and she does not have any employees, servants, or agents in Texas. She does not own or rent real estate or personal property in Texas. She does not maintain any bank accounts, telephone numbers, or post office boxes in Texas.
• The 1998 trust matter is the only legal matter the Lawyers handled for the Fishers.
• The Law Firm maintains an internet website that can be accessed by the residents of Texas. This website provides general information about the firm and its attorneys, including the kinds of legal representation offered by the firm and its attorney members. The website includes recent articles and/or publications relating to the Law Firm’s work, as well as contact information for the Law Firm and its members. The website does not allow for (1) the exchange of information between the user and the Law Firm or (2) the transaction of business or entry into contracts through the website or the internet.
A representative of the Law Firm testified to substantially the same facts as those stated above as to the Law Firm. He
Based upon the undisputed evidence, we conclude that the evidence is legally insufficient to support the trial court’s implied finding that it could exercise general jurisdiction over the Lawyers.
See Helicopteros Nacionales de Colombia, S.A.,
The only basis on which the Fishers assert general jurisdiction exists is the Law Firm’s website. Internet contacts are evaluated on a “sliding scale.”
See Experimental Aircraft Assoc., Inc. v. Doctor,
IV. Conclusion
The trial court erred in impliedly finding that it could exercise personal jurisdiction over the Lawyers based on specific and general jurisdiction. 5 Because the trial court erred in denying the Lawyers’ joint special appearance, we reverse the trial court’s order and remand with instructions to the trial court to dismiss the claims against the Lawyers for lack of personal jurisdiction.
Notes
. We construe the Lawyers' brief as adequately attacking the legal sufficiency of the trial court’s implied findings.
. In
Cartlidge v. Hernandez,
the defendant attorney had more contacts with Texas than do the Lawyers in this case.
See
. The United States Court of Appeals for the Fifth Circuit has noted that this "sliding scale" test is not well-suited to the general jurisdiction inquiry.
Revell v. Lidov,
. We note that, even if the website were on the opposite end of the sliding scale, research shows no Texas cases holding that general jurisdiction can be based on such a website alone, and some courts have found no general jurisdiction even though the defendant had such a website.
See, e.g., Double Eagle Resorts, Inc. v. Mott,
. We need not and do not reach the Lawyers' third issue, in which they assert that the exercise of personal jurisdiction over them would offend traditional notions of fair play and substantial justice.
