No stream-of-commerce personal jurisdiction

September 25, 2022

After a recent ruling about appropriate jurisdictional discovery in a stream-of-commerce case, the Fifth Court reviewed the merits of a special appearance in another such matter in Far East Machinery Co. v. Aranzamendi.  Applying the current state of the law, including recent relevant opinions from both the Texas and United State Supreme Courts, the Court found that the record as to the following alleged contacts was insufficient to support personal jurisdiction in Texas over a claim about natural gas leaks from allegedly defective pipe:

  • “arranging for the shipping of its products to the Port of Houston;
  • some or all of the pipe was marked “FEMCO HOUSTON TX” and Far East Machinery’s deputy manager admitted Far East Machinery marked the pipe “FEMCO”;
  • Far East Machinery has a website accessible in Texas advertising that its products meet certain standards of the American Petroleum Institute, and Far East Machinery stated on the sales documentation that the pipe had been tested and met those specifications;
  • Far East Machinery has been involved in litigation in federal court in the Eastern District of Texas; and
  • Far East Machinery’s deputy manager travels to Texas once a year.”

No. 05-21-00267-CV (Sept. 13, 2022) (mem. op.) (bullet points added).