Project Engineering USA Corp. v. Gator Hawk, Inc

In Project Engineering USA Corp. v. Gator Hawk, Inc.,, 833 S.W.2d 716 (Tex. App.--Houston 1st Dist. 1992, no writ), Gator Hawk sued a nonresident California defendant, Project Engineering ("Project"), and Less Goetting, the president and sole owner of Project, in Texas. Id. at 719. The evidence at the special appearance hearing established that the nonresident defendant served as a distributor in California for three separate Texas companies, none of which was a party to the underlying lawsuit. The contract with one of these Texas companies contained a forum-selection clause providing Texas as the proper forum for any litigation between those parties. Id. at 720. In considering all the evidence from the special appearance hearing, we held that the nonresident defendant purposefully established minimum contacts in Texas because: (1) Project had been a sales representative or distributor in California for three different Texas companies during the few years prior to suit; (2) Goetting, as president of Project, had visited Texas in connection with its contracts with these Texas companies on at least four different occasions; (3) Project received commission checks from the Texas companies; (4) a written contract with one of the Texas companies was signed in Houston by Goetting; and the agreement specified that Texas law was controlling and that any litigation under the contract was to be brought in Houston, Texas. Id. at 722. The Court further stated that it could reasonably be inferred that, in furtherance of its representation efforts in California for the three Texas companies, the nonresident defendant "necessarily had to keep in regular communication with the Texas companies it represented." Id.