Opinion ID: 1636527
Heading Depth: 1
Heading Rank: 3

Heading: the texas test

Text: In an effort to ensure compliance with the federal constitutional standard, Texas has designed its own formula for specific jurisdiction: (1) The nonresident defendant or foreign corporation must purposefully do some act or consummate some transaction in the forum state; (2) The cause of action must arise from, or be connected with, such act or transaction; and (3) The assumption of jurisdiction by the forum state must not offend traditional notions of fair play and substantial justice, consideration being given to the quality, nature, and extent of the activity in the forum state, the relative convenience of the parties, the benefits and protection of the laws of the forum state afforded the respective parties, and the basic equities of the situation. O'Brien v. Lanpar Co., 399 S.W.2d 340, 342 (Tex.1966). The Texas formula tracks elements of the jurisdictional test that have evolved in United States Supreme Court decisions. The first part of the Texas formula reflects the key component of the minimum contacts analysis, the requirement that a defendant purposefully avail himself of the benefits of the forum and reasonably expect to be called to court there. The third part reflects the fair play and substantial justice prong of the jurisdictional test and specifies the factors that this state considers important in the fair play analysis. In its second part, the Texas formula reflects the concept of specific jurisdiction. The formula does not, however, include the concept of general jurisdiction. For this reason, the formula is incomplete and could give litigants the false idea that jurisdiction may be premised only on an act or transaction of the defendant that gives rise to a cause of action. We believe that the Texas formula should be as complete an outline of the constitutional standard as possible. Accordingly, we modify the second part of the formula to state that jurisdiction may also arise from the continuing and systematic contacts of the defendant with Texas, even if the cause of action does not arise from a specific contact. The requirement should now read: (2) The cause of action must arise from, or be connected with, such act or transaction. Even if the cause of action does not arise from a specific contact, jurisdiction may be exercised if the defendant's contacts with Texas are continuing and systematic. In adopting this modification, we do not change the law. We simply clarify what federal and state cases have acknowledged for many years, that is, that jurisdiction is possible whether either single or numerous contacts between forum and defendant exist. See Helicopteros, 466 U.S. at 414-15, 104 S.Ct. at 1872-73; Zac Smith, 734 S.W.2d at 663.