Does Texas Law Apply to a Contract With Saudi Arabian Party ?
In CPS Int'l, Inc. v. Dresser Indus., Inc., 911 S.W.2d 18, 28-9 (Tex.App.-El Paso 1995, writ denied), the plaintiff alleged that the defendants tortiously interfered with a contractual relationship between the plaintiff and a private Saudi Arabian party to perform field servicing in Saudi Arabia. Id.
The plaintiff argued, unsuccessfully, that Texas law applied to its cause of action because the conduct alleged to be tortious was directed from Texas. CPS Int'l, Inc., 911 S.W.2d at 30.
The court of appeals held "that tortious conduct may have been directed from Texas does not alter the reality that the conduct was directed to and carried out in Saudi Arabia, and it was the carrying out of the conduct that the was the source of its harmful nature." Id.
Thus, the court found that the second contact under section 145 favored the application of Saudi Arabia law. Id.