Long-Arm Statute Doesn't Reach Transporter of Goods Through Texas
The Texas Supreme Court recently concluded that merely transporting goods through Texas does not create sufficient minimum contacts to establish specific jurisdiction in this state. In the case of Zinc Nacional, S.A. v. Bouché Trucking, Inc., a Mexican company (Zinc) sold paper to a company in New Mexico. Zinc transported the product to the Texas border, transferred the trailer to another truck company (Bouché), which transported the paper through Texas to New Mexico. Zinc does not have an office, agents or employees in Texas and does not sell paper to Texas manufacturers. During one particular shipment in 1999, the Bouché driver was injured when the contents of the trailer shifted and the truck overturned. The driver filed a negligence suit against Bouché.
Bouché sought third-party indemnification and contribution through Zinc, who filed a special appearance to challenge specific and general jurisdiction. The trial court denied Zinc’s special appearance. The Court of Appeals upheld the trial court’s opinion stating that “Zinc had purposefully availed itself to Texas benefits” and “had thereby established sufficient minimum contact for purposes of specific jurisdiction.” The Supreme Court disagreed finding that Zinc doesn’t have the minimum contacts necessary to establish specific jurisdiction, concluding that third-party shipment of goods through Texas “does not, by itself, constitute purposeful availment.” The Court reversed and remanded the case to the appellate court for determination of the general jurisdiction issue.
