American Type Culture Collection, Inc. v. Coleman
In American Type Culture Collection, Inc. v. Coleman, 83 S.W.3d 801, 806 (Tex. 2002), the defendant purchased supplies from over 33 Texas vendors over a five-year period and sent representatives to five scientific conferences in Texas over a seven-year period. Id. at 808.
But the defendant did not advertise in Texas or maintain a physical presence in Texas. Id. at 810. It performed its business services outside of Texas and constructed its contracts to ensure it did not benefit from Texas laws. Id.
The supreme court concluded that these factors, taken together, did not establish a pattern of continuing and systematic activity sufficient to support the exercise of personal jurisdiction in Texas. Id. at 809-10.
The Texas Supreme Court considered whether a Texas court had general jurisdiction over a foreign corporation organized under District of Columbia laws with its principal place of business in Maryland.
The corporation advertised in national and international journals, sold products to Texas residents for at least eighteen years, served as a repository for Texas researchers, contracted with a Texas medical center, and signed a repository contract in Maryland. Id. at 807-08.
All of the services related to the repository contract were performed in Maryland. Id. The corporation also purchased approximately $ 378,000 of supplies from thirty-three Texas vendors, and the corporation's representatives attended five conferences in Texas. Id. at 808.
Unquestionably, there were contacts with Texas, but there was no pattern of continuing systematic activity. Id. at 809.
The Texas Supreme Court focused on the fact that the corporation had no physical presence or office in Texas, did not advertise in Texas, performed all of its business services outside Texas, and carefully constructed its contracts to ensure it did not benefit from Texas laws. American Type Culture Collection, 83 S.W.3d at 810.
The Supreme Court found the corporation did not have sufficient minimum contacts with Texas. Id.