“Directing a tort” still a jurisdictional no-go

Mode, a Texas-based provider of transportation services, had a contract with Boyer (and later, his company, MTSI) to act as its sales agent. After some years under the contract, Boyer sought to sell MTSI to an unrelated company called MX, while also discussing a potential sale of MTSI to Mode.

When Mode learned of the Boyer-MX communications, it sued all three parties (Boyer, MTSI, and MX) for taking trade secrets; Boyer and MTSI for breach of their sales-rep contract with Mode; and MX for tortiously interfering with that contract.

The Fifth Court affirmed the denial of the special appearance made by Boyer and MTSI, noting that significant business they conducted in Texas pursuant to their relationship with Mode. But the Court reversed the denial of MX’s special appearance, noting recent Texas and U.S. Supreme Court opinions about “stream of commerce” jurisdictional issues, and nevertheless concluding: “Mode seeks to premise specific jurisdiction over MX based on the ‘directed a tort’ or ‘effects’ theory” that the Texas Supreme Court has rejected. Boyer v. Mode Transp., LLC, No. 05-23-00008-CV (Oct. 4, 2023) (mem. op.).