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Personal Touch Holding Corp., and PT Intermediate Holding, Inc. v. LMS Consulting, LLC

Citation: Not availableDocket: 04-14-00827-CV

Court: Court of Appeals of Texas; March 3, 2015; Texas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The appellate case involves LMS Consulting LLC as the appellee and PT Intermediate Holding, Inc. and Personal Touch Holding Corp. as appellants, arising from an interlocutory appeal in the Fourth Court of Appeals in San Antonio, Texas. The appeal challenges the 45th Judicial District Court's denial of appellants' special appearances contesting personal jurisdiction. The case centers around allegations of breach of contract and tortious interference concerning recruiting and staffing services in Texas. Appellee asserts that the appellants conducted business in Texas under the name 'Personal Touch Home Care, Inc.' and failed to fulfill contractual obligations, while also interfering with existing contracts. The appellants argue against personal jurisdiction, claiming insufficient contacts with Texas and denying operations under the disputed business name. The trial court found that appellants failed to negate jurisdictional allegations, attributing Texas contacts through the doctrine of jurisdictional veil piercing. The court upheld personal jurisdiction based on evidence of appellants' systematic contacts with Texas, ruling that their claimed inadvertences did not negate the jurisdictional claims. The appellate court is tasked with reviewing these jurisdictional findings and the applicability of the long-arm statute, with the appellee seeking affirmation of the trial court's decision.

Legal Issues Addressed

Breach of Contract and Tortious Interference Claims

Application: Appellee alleges breaches of these contracts by Appellants, including failure to remit payments, and claims of intentional torts directed at Texas residents.

Reasoning: Appellee alleges breaches of these contracts by Appellants, including failure to remit payments. Furthermore, Appellee claims that Appellants committed an intentional tort by persuading Appellee's contractors to breach their agreements and work for Appellants or their competitors.

Corporate Representation and Business Identity

Application: Evidence indicated that Appellants operated under the name 'Personal Touch Home Care, Inc.' despite claims to the contrary, impacting the court's jurisdictional decision.

Reasoning: Despite evidence showing extensive operations under the 'Personal Touch Home Care, Inc.' name, Appellants claim they do not conduct business under that name, attributing its use to 'inadvertence.'

Jurisdictional Veil Piercing

Application: The court considered the possibility of applying the jurisdictional veil-piercing doctrine to attribute the Texas contacts of related entities to the Appellants.

Reasoning: The brief also discusses the possibility of applying the jurisdictional veil-piercing doctrine to attribute the Texas contacts of related entities to the Appellants.

Minimum Contacts for Establishing Personal Jurisdiction

Application: The trial court found sufficient evidence of continuous and systematic contacts with Texas to support personal jurisdiction over the Appellants.

Reasoning: The Appellants' contracts with LMSC, through 'Personal Touch Home Care, Inc.,' facilitated the recruitment of Texas residents, establishing jurisdiction.

Personal Jurisdiction under Texas Long-Arm Statute

Application: The appellants failed to negate the bases for both general and specific jurisdiction stemming from their actions directed at Texas.

Reasoning: Appellee contends that the trial court's dismissal of Appellants should be upheld, arguing that Appellants have not adequately negated the bases for both general and specific jurisdiction stemming from their actions directed at Texas.