Trois v. Apple Tree Auction Center, Inc.

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Plaintiff, a Texas citizen, filed suit against defendants, Ohio citizens, in Texas court based on a breach of contract claim and a misrepresentation claim. The Fifth Circuit held that the breach of contract claim could not be tried in the Texas courts because the auction contract at issue was executed and performed solely in Ohio. The court held, however, that the fraud claim could be tried in Texas because defendants had the requisite minimum contacts with Texas. In this case, defendants should have reasonably anticipated being haled into Texas court as a result of reaching out to Texas via phone in order to garner business and make specific representations. Furthermore, the Texas district court was the proper venue for the fraud claim where the misrepresentations directed at Texas were a substantial part of the events giving rise to the alleged fraud. Therefore, the court affirmed in part, reversed in part, and remanded. View "Trois v. Apple Tree Auction Center, Inc." on Justia Law