Sign Effects Sign Co. v. SignWarehouse.Com
Dallas Court of Appeals No. 05-12-01301-CV (January 30, 2015)
Justices Bridges, Lang-Miers (Opinion), and Meyers
The Dallas Court of Appeals confirmed there is no specific jurisdiction over a Texas company in a foreign state where (1) the alleged wrongful conduct arose from a single transaction initiated by an entity in that foreign state, and (2) the parties agreed to resolve any disputes in Texas. SignWarehouse.com, a Texas company, maintained a website that marketed its products and allowed customers to submit orders through the website or by telephone. Sign Effects, an Ohio company, initiated an order with SignWarehouse by telephone. SignWarehouse filled the order in Texas and arranged for shipment to Ohio via commercial carrier. The invoice and sales contract provided that any lawsuits regarding the transaction would be pursued “only in Sherman, Grayson County, Texas.” Nevertheless, Sign Effects sued SignWarehouse in Ohio and obtained a default judgment. After Sign Effects attempted to domesticate the judgment in Texas, SignWarehouse moved to vacate that judgment. The trial court vacated the judgment, finding no personal jurisdiction existed over SignWarehouse in Ohio. The Dallas Court of Appeals affirmed, holding that (1) lack of personal jurisdiction over the defendant is a “well-established exception to the requirement that a foreign judgment be afforded full faith and credit,” and (2) the record did not support the exercise of personal jurisdiction in Ohio because Sign Effects initiated the transaction at issue and the sales contract provided for exclusive jurisdiction in Texas. Accordingly, the Court of Appeals held the trial court did not abuse its discretion by vacating the Ohio judgment.
