Opinion ID: 502723
Heading Depth: 2
Heading Rank: 2

Heading: Amenability to Service

Text: 20 Westerstrom contends that he is not amenable to service under the Texas long-arm statute for a breach of the contract to repair the M/V CARIBBEAN WIND. He maintains that he negotiated the contract solely in the disclosed capacity of agent of either the owner or operator of the vessel, who were identified to Bludworth. In support of his agency argument, Westerstrom points out on appeal that the invoices were addressed not to him but to Contract Shipping Line, Ltd. But Ray Etheridge, Bludworth's repairs superintendent, contested Westerstrom's agency claim, stating in an affidavit submitted to the district court that Bludworth looked to Westerstrom for payment. The record does not indicate that the district court resolved this factual dispute. 21 The Texas Court of Appeals recently held that Texas courts may only exercise long-arm jurisdiction over a nonresident for a breach of contract if the nonresident actually entered into a contract with a resident of Texas. Ross F. Meriwether & Assoc., Inc. v. Aulbach, 686 S.W.2d 730, 732 (Tex.App.--San Antonio 1985, no writ). 22 An agent is not a party to, nor individually liable on, a contract he enters into on behalf of his principal. It is the principal who enters into the contract.... When an agent arrives in Texas to negotiate a contract for his principal, only the principal does business in the state. The agent, having entered into no contract, has done no business in Texas, and, therefore, has done no act nor has he consummated a transaction in Texas. Id. at 731 (citations omitted). 10 23 We do not now resolve whether this decision is consistent with the general rule that the Texas long-arm statute extends to the limits of due process. Holt Oil & Gas, 801 F.2d at 777. But if service is hereafter properly effectuated on Westerstrom under the long-arm statute, then whether he entered into the contract with Bludworth solely as an agent for one of the Contrast entities, as a disclosed principal, may well have to be expressly resolved by the district court in order to determine the issue of amenability to out-of-state service of process which would then be presented.