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Chevron Thailand Exploration & Production, Ltd. ("CTEP") v. Jaime Taylor

Citation: Not availableDocket: 14-18-00540-CV

Court: Court of Appeals of Texas; December 2, 2019; Texas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves an interlocutory appeal by Chevron Thailand Exploration and Production, Ltd. (CTEP), a Bermuda company with principal operations in Thailand, challenging the Texas trial court's denial of its special appearance regarding personal jurisdiction. The plaintiff, a Mississippi resident, alleged negligence against CTEP related to injuries sustained on a drilling rig in the Gulf of Thailand. CTEP argued it lacked the requisite minimum contacts with Texas, as it had no physical presence or business operations in the state. The court reviewed whether the jurisdictional facts met the standards of the Texas long-arm statute and federal due-process requirements, focusing on the purposeful availment test. The court found no substantial connection between CTEP’s limited interactions with Texas and the litigation, as all relevant activities and contracts were centered in Thailand. CTEP's contacts, including purchasing goods and services from Texas and certain personnel travels, were deemed insufficient to establish specific jurisdiction. Consequently, the appellate court reversed the trial court's decision, dismissing the plaintiff's claims for lack of personal jurisdiction and highlighting that CTEP could not reasonably foresee being haled into Texas court. The court thus did not address further arguments regarding fair play and substantial justice.

Legal Issues Addressed

Negligent Hiring and Jurisdictional Facts

Application: Taylor failed to prove that CTEP's alleged negligent hiring had any substantial connection to Texas, as the operative facts occurred in Thailand.

Reasoning: To prove negligent hiring, Taylor must demonstrate that CTEP had a duty to hire competent employees, breached that duty, and that this breach caused the damages claimed.

Personal Jurisdiction and Minimum Contacts

Application: The court determined that CTEP did not have sufficient minimum contacts with Texas to establish personal jurisdiction, as there was no substantial connection between CTEP’s activities and the state.

Reasoning: The Fourteenth Court of Appeals reversed the trial court's denial of Chevron Thailand Exploration and Production, Ltd. (CTEP)'s special appearance in an interlocutory appeal regarding personal jurisdiction.

Purposeful Availment Standard

Application: CTEP lacked purposefully directed activities towards Texas, as its operations were confined to Thailand, negating the purposeful availment requirement under Texas law.

Reasoning: CTEP contended it lacked the necessary minimum contacts with Texas for the purposeful availment standard.

Specific Jurisdiction and Connection with Forum

Application: Taylor’s claim of negligent hiring in Texas did not establish specific jurisdiction as there was no link between CTEP’s contacts with Texas and the underlying facts of the case.

Reasoning: A specific-jurisdiction analysis requires examining the relationship between the defendant, the forum, and the litigation, necessitating a substantial connection between the defendant's contacts and the facts of the case.