When a case lacks the operative facts

January 28, 2020

The Fifth Court reversed the denials of several special appearances in a high-profile securities case, when the plaintiffs “explicitly allege that their causes of action under sections 11 and 12 are ‘based solely on negligence and/or strict liability,'” and thus had the burden to prove only the “adverse facts that existed at the time” of the relevant offerings and its effect on the underlying business. The Court concluded that the “operative facts” related to those particular issues “are not substantially connected to Texas.” 05-19-01177-CV (Jan. 26, 2020) (mem. op.) (applying, inter alia, Moncrief Oil v. Gazprom, 414 S.W.3d 142 (Tex. 2013)).