Long-Arm Didn’t Reach Holding Company

The court of appeals affirmed the trial court’s order granting CFC’s special appearance and dismissed NexBank’s claims against it.  CFC negated personal jurisdiction by producing an affidavit, which alleged that CFC is a holding company that does not have business operations in Texas, does not own property or other assets in Texas, and does not maintain employees in Texas.  NexBank’s evidence showed only that CFC’s subsidiaries may have had sufficient contact with Texas.  But the court noted that it cannot exercise personal jurisdiction over a holding company based on the actions of its subsidiaries.  NexBank also cited three unrelated cases as evidence that CFC sought relief in Texas courts.  However, the court found that CFC defending itself in a lawsuit, failing to contest jurisdiction in two other suits, and filing a counter-claim in a third suit did not waive CFC’s right to contest jurisdiction in this matter.  Thus, NexBank failed to establish that CFC has some minimum, purposeful contact with Texas.

NexBank, SSB v. Countrywide Fin. Corp., No. 05-12-00567-CV