Deloitte & Touche Netherlands Antilles and Aruba v. Ulrich – Case Brief Summary (Texas)

In Deloitte & Touche Netherlands Antilles and Aruba v. Ulrich, 172 S.W.3d 255, 268 (Tex. App.--Beaumont 2005, pet. denied), a Deloitte & Touche entity based in Houston had seconded or loaned employees to perform work on behalf of DTT. Id. at 265.

DTT argued that because these seconded employees were not salaried employees according to DTT and did not engage in work to develop Texas business or exploit Texas markets, it had no continuous and systematic contacts in Texas. Id. 265-66.

The court noted, however, that seconded employees are considered employees under Texas law, of DTT, the borrowing employer. Id. at 266.

The court stated "a foreign association that sets up what is, in effect, a permanent office in Texas, and uses this base for conducting out-of-state or global business, could reasonably anticipate a Texas court may exercise general jurisdiction over the firm." Id.

The court continued, "though Texas is not DTT's headquarters, DTT's contacts with Texas are substantial; that is, they are comparable to the activities of a resident business using Texas as a base of operations." Id.

Based on the nature and quality of DTT's contacts, the court determined DTT had a "physical presence" in Texas sufficient to support general jurisdiction. Id. at 267-68.