Information Services Group, Inc. v. Rawlinson
Full Opinion (html_with_citations)
OPINION
This is an accelerated, interlocutory appeal from the trial courtâs order granting appellee Tony Rawlinsonâs special appearance. In two issues, the appellants Information Services Group, Inc., Technology Partners International, Inc., and TPI Eu- *396 resourcing, L.L.C. contend that the trial court erred in granting the special appearance. Because we hold that Rawlinson lacks sufficient minimum contacts to support the assertion of specific jurisdiction, we affirm.
I
Rawlinson is a former employee of TPI Eurosourcing, L.L.C. (âEurosourcingâ). Rawlinson worked for Eurosourcing from June 2004 until May 2008. Eurosourcing is a Texas limited liability company with operations in the United Kingdom. Raw-linson, a citizen and resident of the U.K., worked for Eurosourcing in the U.K. exclusively. Eurosourcing is a branch or subsidiary of Technology Partners International, Inc. (âTechnology Partnersâ), a Texas corporation that has its principal place of business in The Woodlands, Texas. In 2007, Information Services Group, Inc. (âInformation Servicesâ), through a purchase agreement with MCP-TPI Holdings, LLC (âMCP-TPIâ), 1 another Texas company, acquired ownership of Information Services and Eurosourcing. Information Services is a Delaware company that has its principal place of business in Connecticut.
In the course of Rawlinsonâs employment relationship, he entered into employment agreements with Eurosourcing and a confidentiality agreement with Eurosoure-ing and Technology Partners. He also acquired an ownership interest in MCP-TPI, and executed a non-competition, non-solicitation, and non-disclosure agreement with MCP-TPI. In connection with Information Servicesâs acquisition of Technology Partners and Eurosourcing, Rawlinson executed a subscription agreement in which he agreed to invest part of the sales proceeds he received from his equity interest in MCP-TPI, and he also executed non-competition, non-solicitation, and nondisclosure agreements with Information Services. Rawlinson also was issued a Eurosourcing computer to access appellantsâ website and his email account, and he traveled to Texas twice at Eurosourc-ingâs direction for annual conferences.
The address of the Eurosourcing office through which Rawlinson worked is Albany House, Market Street, Maidenhead, Berkshire SL6 8BE, U.K. Rawlinsonâs employment agreements specified that his primary place of employment was his home in the U.K. and that the agreements were subject to the laws of England and Wales. The confidentiality agreement among Eurosourcing, Technology Partners, and Rawlinson also provided that it was governed by English law and further provided that the parties agreed to submit to the exclusive jurisdiction of the English courts. Rawlinsonâs agreements with Information Services included choice-of-law provisions specifying that either New York or Delaware law applied. Rawlinson executed his employment agreements and all of the other agreements in the U.K. Raw-linsonâs communications with Eurosourc-ing, Technology Partners, or Information Services representatives outside of the U.K. were infrequent and he did not initiate them. Rawlinson was never an employee of Technology Partners or Information Services.
Less than two months after his departure from Eurosourcing, Rawlinson went to work for EquaTerra Europe, Limited, in the U.K. EquaTerra Europe is a subsidiary of EquaTerra, Inc., a Delaware corporation with its principal place of business in Texas. The appellants and EquaTerra, Inc. are competitors in the business of providing various consulting services to companies throughout the United States and Europe. Under the restrictive cove *397 nants in his agreements with the appellants, Rawlinson was prohibited from working for a competitor for at least six months after his departure. According to the appellants, after he resigned, Rawlin-son also took confidential and proprietary information with him to his new employer in violation of his confidentiality agreements.
In July 2008, the appellants sued Raw-linson and EquaTerra, Inc. in Harris County. 2 The appellants alleged that Rawlinson breached three non-disclosure, non-solicitation, and non-competition agreements. The appellants also alleged that EquaTerra violated two letter agreements containing non-solicitation provisions, and additionally asserted claims of tortious interference, unfair competition, and unjust enrichment against EquaTerra. In response, Rawlinson filed a special appearance. He later amended his special appearance and filed it with a supporting affidavit. The appellants specially excepted to these filings and sought a continuance to take Rawlinsonâs deposition. Rawlinson then filed an amended special appearance and an amended affidavit After the appellants deposed Rawlinson in Houston, they responded to his special appearance. Following a non-evidentiary hearing, the trial court signed an order on February 24, 2009, granting Rawlinsonâs special appearance and dismissing him from the case.
II
A
Whether a trial court has personal jurisdiction over a defendant is a question of law we review de novo. Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569, 574 (Tex.2007); BMC Software Belgium, N.V. v. Marchand, 88 S.W.3d 789, 794 (Tex.2002). When, as here, the trial court issues no findings of fact and conclusions of law, all facts necessary to support the judgment and supported by the evidence are implied. BMC Software, 83 S.W.3d at 795. But when the appellate record includes the reporterâs and clerkâs records, parties can challenge the legal and factual sufficiency of these implied factual findings. BMC Software, 83 S.W.3d at 795; Brocail v. Anderson, 132 S.W.3d 552, 556 (Tex.App.-Houston [14th Dist] 2004, pet. denied). 3
B
The plaintiff has the initial burden of pleading sufficient allegations to bring the nonresident defendant within the provisions of the Texas long-arm statute. BMC Software, 83 S.W.3d at 793; Brocail, 132 S.W.3d at 556. A defendant challenging a Texas courtâs personal jurisdiction over it must negate all jurisdictional bases alleged. BMC Software, 83 S.W.3d at 793; Natâl Indus. Sand Assân v. Gibson, 897 S.W.2d 769, 772 (Tex.1995).
C
Texas courts may exercise jurisdiction over a nonresident if the Texas long-arm statute authorizes the exercise of personal jurisdiction and the exercise of jurisdiction is consistent with federal and *398 state constitutional guarantees of due process. Mo ki Mac, 221 S.W.3d at 574; BMC Software, 83 S.W.3d at 795. The Texas long-arm statute authorizes Texas courts to exercise jurisdiction over a nonresident defendant who âdoes businessâ in the state. Tex. Civ. Prac. & Rem.Code Ann. § 17.042 (Vernon 2008). The Texas Supreme Court has interpreted the broad language of the Texas long-arm statute to extend Texas courtsâ personal jurisdiction â âas far as the federal constitutional requirements of due process will allow.â â BMC Software, 83 S.W.3d at 795 (quoting Guardian Royal Exch. Assurance, Ltd. v. English China Clays, P.L.C., 815 S.W.2d 223, 226 (Tex.1991)). As a practical matter, therefore, we need consider only whether it is consistent with federal constitutional requirements of due process for Texas courts to assert personal jurisdiction over the nonresident defendant. Mold Mac, 221 S.W.3d at 575; Brocail, 132 S.W.3d at 557.
Personal jurisdiction over a nonresident defendant is constitutional when two conditions are met: (1) the defendant has established minimum contacts with the forum state; and (2) the exercise of jurisdiction comports with traditional notions of fair play and substantial justice. Intâl Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945); BMC Software, 83 S.W.3d at 795. Minimum contacts are sufficient for personal jurisdiction when the nonresident defendant purposefully avails itself of the privilege of conducting activities within the forum state, thus invoking the benefits and protections of its laws. Intâl Shoe, 326 U.S. at 319, 66 S.Ct. 154; Michiana Easy Livinâ Country, Inc. v. Holten, 168 S.W.3d 777, 785 (Tex.2005). Three factors important in determining whether a defendant has purposefully availed itself of the forum are: (1) only the defendantâs contacts with the forum matter, (2) the acts relied on must be purposeful rather than merely fortuitous, and (3) the defendant must seek some benefit, advantage, or profit by availing itself of the forum. Michiana, 168 S.W.3d at 784. Because of the unique and onerous burden placed on a party called upon to defend a suit in a foreign legal system, the minimum-contacts analysis is particularly important when the defendant is from a different country. Asahi Metal Indus. Co. v. Superior Court, 480 U.S. 102, 114, 107 S.Ct. 1026, 94 L.Ed.2d 92 (1987); BMC Software, 83 S.W.3d at 795.
D
Texas courts may exercise two types of jurisdiction based on a nonresidentâs contacts with the state. If the defendant has made continuous and systematic contacts with the forum, general jurisdiction is established whether or not the defendantâs alleged liability arises from those contacts. Moki Mac, 221 S.W.3d at 575; BMC Software, 83 S.W.3d at 796. In contrast, when specific jurisdiction is alleged, we focus the minimum-contacts analysis on the relationship among the defendant, the forum, and the litigation. Moki Mac, 221 S.W.3d at 575-76. Specific jurisdiction is established if the defendantâs alleged liability arises out of or is related to an activity conducted within the forum. Id. at 576. For a nonresident defendantâs forum contacts to support an exercise of specific jurisdiction, there must be a substantial connection between those contacts and the operative facts of the litigation. Id. at 580, 585. To identify the operative facts of the litigation, we select those facts that would be the focus of the trial. See id.; Pulmosan Safety Equip. Corp. v. Lamb, 273 S.W.3d 829, 839 (Tex.App.-Houston [14th Dist] 2008, pet. denied). Here, the appellants allege only specific jurisdiction.
*399 III
On appeal, the appellants contend that Rawlinson engaged in acts constituting âdoing businessâ in Texas as provided in the Texas long-arm statute because they alleged that Rawlinson entered into contracts with Texas residents and engaged in other purposeful contacts constituting âdoing businessâ in Texas. See Tex. Civ. Prac. & Rem.Code Ann. § 17.042. The appellants also contend that they demonstrated that Rawlinson has constitutionally sufficient minimum contacts to support specific jurisdiction and that the assumption of jurisdiction would not offend traditional notions of fair play and substantial justice.
In their original petition, the appellants alleged that Rawlinson was amenable to service of process pursuant to the Texas long-arm statute because he âentered i.âto several contracts with Texas residents that called for performance in part in Texas, including, but not limited to, a contract of employment with [Eurosourc-ing], a Texas company....â The appellants further alleged that Rawlinson executed a confidentiality agreement with Technology Partners and Eurosourcing, that he agreed not to engage in any competition or perform any services for a competitor, and that his employment with EquaTerra breached three of his agreements with the appellants. Additionally, the appellants alleged that Rawlinson solicited business from the appellantsâ clients, solicited the appellantsâ employees to leave their employment, and took the appellantsâ confidential information and gave it to EquaTerra. 4 Because the exercise of jurisdiction under the Texas long-arm statute is limited by federal and state due-process requirements, we need only consider whether the assertion of jurisdiction accords with the due-process guarantees. See Moki Mac, 221 S.W.3d at 575.
The appellants primarily contend that Rawlinsonâs various agreements with Texas entities establish minimum contacts. Specifically, the appellants point to Raw-linsonâs execution of employment agreements with Eurosourcing, a Texas limited-liability company, which incorporated the restrictive covenants in a contemporaneously executed confidentiality agreement with both Eurosourcing and Technology Partners, also a Texas company. Additionally, the appellants allege that Rawlin-son entered into two more contracts with MCP-TPI, another Texas limited-liability company âby which he was also employed and in which he owned an equity interest.â One of these agreements included restrictive covenants and was governed by Texas law. Further, the appellants contend, the restrictive covenants protected, among other things, the confidential information stored on Texas-based servers that Raw- *400 linson regularly accessed in the daily performance of his job using a computer Eu-rosourcing issued to him. Rawlinsonâs electronic mail was also routed through these same servers. Additionally, Rawlin-son also made two trips to Texas as required for his job.
These contacts, the appellants contend, show that Rawlinson purposefully availed himself of the privilege of conducting activities within Texas, thereby invoking the benefits and protection of its laws. See Burger King v. Rudzewicz, 471 U.S. 462, 475-76, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985). But the appellants do not allege that Rawlinson engaged in any acts constituting a breach of contract in Texas, nor do they explain how the contracts required Rawlinson to conduct activities in Texas. Merely contracting with a Texas company does not constitute purposeful availment for jurisdictional purposes. See, e.g., IRA Res., Inc. v. Griego, 221 S.W.3d 592, 597-98 (Tex.2007) (per curiam); Alenia Spazio, S.p.A. v. Reid, 130 S.W.3d 201, 213 (Tex.App.-Houston [14th Dist.] 2003, pet. denied); Shell CompanĂa Argentina de Petroleo, S.A. v. Reef Exploration, 84 S.W.3d 830, 838 (Tex.App.-Houston [1st Dist.] 2002, pet. denied). Nor does simply being employed by a Texas company. See, e.g., Gonzalez v. AAG Las Vegas, L.L.C., â S.W.3d â, â â(Tex.App.-Houston [1st Dist.] 2009, no pet. h.); Rushmore Inv. Advisors, Inc. v. Frey, 231 S.W.3d 524, 530 (Tex.App.-Dallas 2007, no pet.); Gustafson v. Provider HealthNet Servs., Inc., 118 S.W.3d 479, 483 (Tex.App.-Dallas 2003, no pet.).
Further, viewed in the context of the appellantsâ allegations, the Texas contacts the appellants rely on appear more attenuated than purposeful. In their petition, the appellants alleged that Rawlinson breached three agreements: (1) the Confidentiality and Proprietary Information Agreement executed on June 7, 2004 (among Technology Partners, Eurosourc-ing, and Rawlinson); (2) the Non-Competition, Non-Solicitation, Non-Disclosure and Lock-Up Agreement executed on May 30, 2007 (between Information Services and Rawlinson); and (3) the Restricted Stock Unit Award Agreement and Restrictive Covenant Agreement executed on November 16, 2007 (between Information Services and Rawlinson). The first of these, the Confidentiality and Proprietary Information Agreement, identified Euro-sourcing as âa branch [of Technology Partners] registered in England and Walesâ and reflected Eurosourcingâs and Rawlin-sonâs U.K. addresses. This agreement also specified that it was governed by English law and the parties agreed to submit to the exclusive jurisdiction of the English courts. Moreover, it was ancillary to Raw-linsonâs employment agreements, which similarly specified that they were governed by the laws of England and Wales. The more recent of the two employment agreements further provided that the parties agreed to submit to the non-exclusive jurisdiction of the English courts. Additionally, although Rawlinsonâs employment agreements provided that Eurosoureing could require Rawlinson to work or travel outside of the U.K., it designated Rawlin-sonâs âPlace of Workâ as âyour home address in Englandâ and never mentioned Texas as a potential place for performance. The other two agreements allegedly breached were with Information Services, a Delaware corporation, were governed by either New York or Delaware law, and neither of these agreements contemplated performance in Texas.
As noted in Michiana Easy Livinâ Country, Inc. v. Holten, the United States Supreme Court has held that choice-of-law provisions should be considered when determining whether a defen *401 dant has purposely availed itself of the benefits and protections of a stateâs laws. 168 S.W.3d at 792 (citing Burger King, 471 U.S. at 482, 105 S.Ct. 2174). Further, the Michiana court instructed that âinsertion of a clause designating a foreign forum suggests that no local availment was intended.â Id. Here, the forum-selection clauses, while not dispositive, provide some evidence that no local availment was intended, as does the designation of Raw-linsonâs place of work as his home address in the U.K. Additionally, Rawlinson also signed these agreements in the U.K., and the appellants do not contend that Rawlin-son ever worked for any of them in Texas.
The appellants also point out that Rawlinson entered into two agreements with MCP-TPI, a Texas company, and those agreements include a Texas choice-of-law provision. The appellants also focus on Rawlinsonâs equity interest in MCP-TPI, stressing that an ownership interest in a Texas company is a much more significant contact than mere employment by a Texas company. But MCP-TPI is not a party to the lawsuit, and the appellants have not asserted in their petition that any alleged breach of the agreements with MCP-TPI constitutes a basis for relief in them lawsuit. Accordingly, these contacts are not relevant to the minimum-contacts analysis for specific jurisdiction. See Yfantis v. Balloun, 115 S.W.Sd 175, 183 (Tex.App.-Fort Worth 2003, no pet.); Shell CompanĂa Argentina de Petroleo, S.A., 84 S.W.3d at 838-39.
In addition to contracting with Texas companies, the appellants point to several contacts Rawlinson had with Texas during his employment with Eurosourcing. But these contacts were made at Euro-sourcingâs direction or were otherwise attenuated or fortuitous. First, appellants point out that Rawlinson was required to travel to Texas to participate in company
conferences. Rawlinson traveled to Texas two times, totaling six days, and these two trips were the only times Rawlinson ever traveled to Texas. The appellants presented some evidence that Rawlinson received confidential and proprietary information at the conferences, but they do not allege that Rawlinsonâs trips to Texas relate in any way to the breach-of-contract claims against him. Further, Rawlinson did not elect to visit Texas; it is undisputed that he attended the conferences at Eurosourcingâs direction. Such unilateral activity is insufficient to constitute relevant jurisdictional contacts. See Gonzalez v. AAG Las Vegas, L.L.C., â S.W.3d at â; Pelican State Physical Therapy, L.P. v. Bratton, No. 01-06-00199-CV, 2007 WL 2833303, at *9 (Tex.App.-Houston [1st Dist.] Sept. 27, 2007, no pet.) (mem. op.). Moreover, visits to Texas that are unrelated to the claims asserted are insufficient to establish specific jurisdiction. See Moki Mac, 221 S.W.3d at 588.
The appellants also presented evidence that Rawlinson accessed confidential and proprietary information â via the company website and email â from company servers that happened to be located in Texas. To support their contention that these contacts are relevant to the minimum-contacts analysis, the appellant's cite to TravelJungle v. American Airlines, Inc., 212 S.W.3d 841 (Tex.App.-Fort Worth 2006, no pet.). But TraveUungle is inap-posite. In that case, the court held that jurisdiction existed because Americanâs causes of action, including trespass of server, were directed to TravelJungleâs repeated accessing of Americanâs website to obtain and sell Americanâs fare data. Id. at 844, 849-51. TraveUungle was the operator of a travel website that accessed Americanâs website â sometimes as often as 2,972 times per day â and took the information from the website to use for its own *402 commercial advantage, in direct violation of Americanâs terms of use for its website. Id. at 850. The court held that TravelJun-gle was subject to the jurisdiction of Texas courts because âit purposefully directed its data-gathering activity toward AA.eomâs servers, which are located in Texas, for commercial, profit-driven purposes; thus, the basis for jurisdiction specifically arises out of the conduct of which American complains.â Id. at 850.
In contrast, the appellants here do not allege that Rawlinson acted improperly or unlawfully when accessing the servers from the U.K., nor does Rawlinsonâs access to them form the basis for any of the appellantâs claims against him. Further, the appellants unilaterally chose the Texas location for the servers, and it is undisputed that Rawlinson did not know where the servers were located. Therefore, Rawlin-son could not have purposefully availed himself of the benefits of conducting business in Texas by accessing the servers from the U.K. 5 In the absence of any allegation that Rawlinson purposefully directed any improper activity towards their servers, Rawlinsonâs business-related use of appellantsâ website and email that happened to be routed through servers the appellants chose to locate in Texas is merely fortuitous. Even if we assume that Rawlinson ultimately obtained confidential information from the Texas-based servers and gave it to EquaTerra in breach of the various restrictive covenants with the appellants, there is no allegation or evidence that he did so in Texas. See Gustafson, 118 S.W.3d at 484 (Michigan employeeâs travel to Texas twice for management meetings was not a contact connected to Texas employerâs breach of confidentiality agreement claim when employer did not assert that employee breached any duties to it or committed any torts during those meetings). Indeed, Rawlinson averred in his amended supporting affidavit that all negotiations with EquaTerra Europe relating to his current employment took place in the U.K., and the appellants do not challenge this testimony.
Appellants also argue that Rawlin-sonâs employment-related contacts created âcontinuing relationships and obligationsâ with Texas entities subjecting him to jurisdiction in Texas to face the consequences of his activities. See Burger King, 471 U.S. at 473, 105 S.Ct. 2174. For this proposition, appellants primarily rely on Burger King and a case from this court, Lathrop v. Personalysis Corp., No. 14-06-00074-CV, 2006 WL 3072072 (Tex.App.Houston [14th Dist.] Oct. 31, 2006, no pet.) (mem. op.). Both cases are distinguishable.
Burger King instructs that we must look not merely to a partyâs contract
*403 with the nonresident; we must also examine the factors surrounding the contractâ prior negotiations and contemplated future consequences, the terms of the contract, and the partiesâ actual course of dealingâ to determine whether the nonresident purposefully established minimum contacts within the forum. 471 U.S. at 479, 105 S.Ct. 2174. In that case, Burger King sued Rudzewicz, a franchisee, for breach of the franchise agreementâs payment provision and for trademark infringement. Id. at 468-69, 105 S.Ct. 2174. Burger King alleged that Rudzewicz failed to make required monthly payments and continued to use the Burger King trademarks at his restaurant after the franchise was terminated. Id. Burger King sued in Florida, the location of its headquarters, even though Rudzewiczâs franchise was in Michigan. Id. at 466, 105 S.Ct. 2174. Rudzew-icz argued that he was not subject to personal jurisdiction in Florida because his restaurant was located in Michigan and he had never even visited Florida. Id. at 469, 479, 105 S.Ct. 2174. The Court concluded that âthis franchise dispute grew directly out of â âa contract which had a substantial connection with that State.â â â Id. at 479, 105 S.Ct. 2174 (quoting McGee v. Intâl Life his. Co., 355 U.S. 220, 223, 78 S.Ct. 199, 2 L.Ed.2d 223 (1957)). In reaching its conclusion, the Court noted that Rudzewicz had â[e]schew[ed] the option of operating an independent local enterprise,â and instead deliberately ââreached out beyondâ Michigan and negotiated with a Florida corporation for the purchase of a long-term franchise and the manifold benefits that would derive from affiliation with a nationwide organization.â Id. at 479-80, 105 S.Ct. 2174. The Court also explained that in light of Rudzewiczâs âvoluntary acceptance of the long-term and exacting regulation of his businessâ from Burger Kingâs Miami headquarters, the quality and nature of his relationship to the company in Florida could in no sense be viewed as random, fortuitous, and attenuated. Id. at 480, 105 S.Ct. 2174. Further, Rudzewiczâs default on the required payments to the Florida home office and his illegal use of Burger Kingâs trademarks âcaused foreseeable injuries to the corporation in Floridaâ and therefore âit was, at the very least, presumptively reasonable for Rudzewicz to be called to account there for such injuries.â Id.
Similarly, in Lathrop v. Personalysis Corp., Lathrop, a Washington resident, was hired by Manatech, a Washington corporation with its principal place of business in Washington. 2006 WL 3072072, at *1. Manatech was a licensee of Personaly-sis, a Texas corporation, and as such, Ma-natech was an authorized distributor of the Personalysis personality test and related consulting services. Id. Lathrop often worked directly with Personalysis, selling its tests, using its services to score the tests, and eventually signing a license agreement governed by Texas law. 2006 WL 3072072, at â 1-2. Lathrop later reverse-engineered the test in direct violation of the license agreement and began selling it as his own product. Id. at *2. Personalysis sued Lathrop in Texas, alleging that Lathrop used information learned during his training sessions in Texas to reverse engineer the scoring methodology of the Personalysis test. Id. This court concluded that Lathropâs continuing relationship with Personalysis resembled the franchising relationship in Burger King because the license agreement between Lathrop and Personalysis provided that it was governed by Texas law; the agreement contemplated that Personalysis would train Lathrop to use its system; Lathropâs agreement with Manatech specifically called for training sessions in Houston; Lathrop contractually agreed to follow Personalysisâs procedures, policies, *404 standards, and materials; and Manatech, the local licensee, monitored Lathropâs day-to-day activities much like the local district office that reported to Burger King in Florida. Id. at 6-8.
We conclude that the facts of the present case are substantially different from those in Burger King and Lathrop. Here, Rawlinson was a U.K. employee of Euro-sourcing, a European branch of Technology Partners, and he was not a franchisee or licensee of Technology Partners. The record evidence shows that, other than two required trips to Texas for company conferences and infrequent communications initiated from Texas, Rawlinsonâs employment activities occurred exclusively in the U.K. Further, Rawlinson did not âreach outâ to Texas by seeking employment in Texas; he averred that he did not solicit employment or business in Texas and there is no contrary evidence. And, as noted above, Rawlinsonâs confidentiality agreement with Eurosourcing and Technology Partners, which is one of the agreements the appellants allege Rawlinson breached, provided that it was governed by English law and the parties were subject to the exclusive jurisdiction of the English courts. More importantly, there is no evidence that Rawlinsonâs employment with Eurosourcing in the U.K. contemplated a relationship with Technology Partners in Texas akin to the continued direct oversight and compliance that Burger King and Personalysis required of their franchisees and licensees. Examining the factors surrounding Rawlinsonâs contracts with Eurosourcing and Technology Partners, including prior negotiations and contemplated future consequences, along with the terms of the contract and the partiesâ actual course of dealing, see Burger King, 471 U.S. at 479, 105 S.Ct. 2174, we cannot conclude that Rawlinson purposefully established minimum contacts with Texas through a continuing relationship with Technology Partners in Texas.
Moreover, as our supreme court explained in Moki Mac, there must be a substantial connection between the alleged contacts and the operative facts of the litigation. Moki Mac, 221 S.W.3d at 585. Here, the appellants allege that Rawlinson breached contracts containing non-compete, non-solicitation, and non-disclosure covenants by, among other things, accepting employment with the appellantsâ competitor, contacting or soliciting business from the appellantsâ clients, taking confidential and proprietary information from the appellants, and providing such information to EquaTerra or its affiliates. On the facts before us, the majority of the focus of any trial would be directed to Rawlinsonâs alleged wrongdoing in the U.K., not Texas. It is undisputed that Rawlinson lived and worked in the U.K., entered into his contracts with appellants in the U.K., worked for Eurosourcing in the U.K., negotiated his employment with EquaTerra Europe in the U.K., and now works for EquaTerra Europe in the U.K. If Rawlinson contacted the appellantsâ clients or provided the appellantsâ confidential information to EquaTerra or its affiliates, there is no evidence to suggest that he would have done so anywhere but in the U.K.
The appellants assert that minimum contacts are established by Rawlinsonâs contracts with and employment by Texas companies, his two trips to Texas for company conferences, his access to the appellantsâ servers in Texas through his use of the appellantsâ website and his email account, and his occasional communications with the appellantsâ representatives outside of the U.K. But these contacts are not substantially connected to the operative facts of a trial based on the appellantsâ allegations. Although Rawlinson may *405 have received confidential and proprietary information at the Texas conferences or obtained it by remotely accessing the appellantsâ Texas servers, the appellants do not identify the confidential information Rawlinson allegedly provided to EquaTer-ra (or its affiliates) and they do not allege that Rawlinson gave confidential information to EquaTerra in Texas. Even assuming that Rawlinsonâs employment-related contacts were sufficient to demonstrate purposeful availment, they do not create a substantial connection to the operative facts of the litigation. See Moki Mac, 221 S.W.3d at 585-88. Therefore, Rawlinson lacks sufficient minimum contacts to enable a Texas court to assert personal jurisdiction over him.
Other courts have reached the same conclusion in analogous cases. For example, in Gonzalez v. AAG Las Vegas, L.L.C., Gonzalez was employed in Ohio at an automotive dealership when an officer of Ascent Automotive Group, L.P., a Delaware partnership located in Houston, approached him about a management position with an Ohio Lexus dealership. â S.W.3d at -. Gonzalez traveled to Houston to interview for the position, and while there he was asked to invest in two Ohio dealerships and allegedly was offered the right to earn an ownership interest in the dealerships. Id. Gonzalez became the general manager of one of the dealerships, and as such he reported to Texas, received his pay from Texas, and regularly telephoned Houston to report on the status of the dealership. Id. AAG Las Vegas then hired Gonzalez to be the general manager of a Las Vegas Lexus dealership, and Gonzalez moved from Ohio to Las Vegas for the job. While there, he traveled to Houston to attend a general managerâs meeting. Id. After about a year, AAG Las Vegas terminated Gonzalez and sued him for breach of the duty of loyalty, usurpation of corporate opportunities, and a declaratory judgment that he was not entitled to an ownership interest in the Ohio and Las Vegas dealerships. Id. at-,-. The trial court denied Gonzalezâs special appearance, but the court of appeals held that the employment-related contacts the appellants asserted lacked a sufficient connection to the litigationâs operative facts. Id. at -. Based on the appellantsâ pleadings, the court determined that the operative facts of their claims concerned Gonzalezâs acts while general manager in Las Vegas, and that Gonzalezâs employment-related contacts with Texas were âminimal.â Id. at-. Accordingly, the court held that Gonzalez lacked sufficient minimum contacts to support the assertion of specific jurisdiction in Texas. Id. at-.
Likewise, in Rushmore Investment Ad-visors, Inc. v. Frey, the Pennsylvania employee of a Texas company was sued in Texas for breach of an employment contract, misappropriation of trade secrets, and unfair competition. 231 S.W.3d at 526-27. The employer, Rushmore, contended that specific jurisdiction was proper over Frey, the former employee, because she had entered into a written employment agreement in Texas and was employed by a Texas firm for twenty-two months. Id. at 529-30. Rushmore also contended that Frey represented to clients and federal agencies that she worked in Texas, made trips to Texas for work, maintained contact with clients in Texas, and signed an employment agreement providing that Texas law would govern any disputes between the parties. Id. at 527. The court upheld the trial courtâs dismissal for lack of personal jurisdiction because âmerely contracting with a Texas company does not necessarily constitute purposeful availment for jurisdictional purposesâ and because âFreyâs alleged liability did not *406 arise from and was not related to activity conducted within Texas,â but rather her activities in Pennsylvania. Id. at 530.
In Pelican State Physical Therapy, L.P. v. Bratton, the court of appeals affirmed the grant of a special appearance even though the Louisiana-based defendant entered into employment contracts with his Texas employer that contained, among other provisions, non-compete, non-solicitation, and non-disclosure covenants; the employee had taken many trips to Texas to attend company meetings; and he had extensive communications with the employerâs personnel in Texas. See 2007 WL 2833303, at *4-6. In that case, Bratton managed a physical-therapy clinic in Louisiana for his Texas employer, Pelican State. Id. at *3. When Bratton resigned his employment and opened a competing clinic in Louisiana, Pelican State sued him in Texas for breach of his employment contract. Id. at *4. Pelican State argued that Bratton was subject to personal jurisdiction in Texas because Brattonâs regular business contacts and communications with its parent companyâs Houston office created continuing obligations with a Texas resident. Id. at *7. Through these obligations, Pelican State argued, Bratton derived substantial personal benefits and thus availed himself of the privilege of conducting business in Texas. Id. The court rejected this argument, explaining that the status of employment and the signing and possible breach of an employment agreement were not âcontinuing obligationsâ sufficient to establish the substantial connection required to support the exercise of personal jurisdiction. Id. at *7-9. Further, the court concluded that Pelican Stateâs allegations and the evidence showed that Pelican Stateâs lawsuit involved acts in Louisiana, and thus Pelican Stateâs asserted Texas contacts were not substantially related to the litigationâs operative facts. See id. at *8-9.
In another analogous case, Gustafson v. Provider HealthNet Services, Inc., the court of appeals rejected a Texas employerâs assertion that specific jurisdiction existed over its former Michigan employee because the employment relationship created âcontinuing obligationsâ with Texas. See 118 S.W.3d at 484. PHNS, a Delaware company with its principal place of business in Texas, hired Gustafson, a Michigan resident, to provide outsourcing services to a Michigan hospital. Id. at 481. PHNS later terminated Gustafsonâs employment and sued him in Texas for breach of his confidentiality agreement, misappropriation of trade secrets and business information, and breach of fiduciary duties. Id. PHNS pointed to the following contacts to show specific jurisdiction over Gustafson: (1) the employment relationship itself; (2) two short visits to Texas associated with Gustafsonâs employment; (3) Gustafson was paid from a Texas bank; (4) Gustafson submitted requests for reimbursement to PHNSâs Texas office and cashed checks for reimbursement that were drawn off a Texas bank; (5) Gustaf-son communicated with PHNSâs employees that were located in Texas; (6) Gustafsonâs health benefits were administered from PHNSâs Texas offices; (7) Gustafsonâs health insurance was through Blue Cross Blue Shield of Texas; and (8) insurance agents located in Texas administered Gus-tafsonâs dental and life insurance. Id. at 483.
The Gustafson court determined that, based on the claims alleged, these contacts were not sufficient to establish specific jurisdiction because the contacts were not âconnected to Gustafsonâs execution of the confidentiality agreement, or his dissemination of confidential information, both of which occurred in Michigan.â Id. at 484. The court went on to reject PHNSâs assertion that âcontinuing obligationsâ arising *407 from the employment relationship established jurisdiction. Id. The court expressly distinguished Burger King, noting that in Burger King the contract between the franchisor and franchisee required performance in the forum state and the agreement expressly provided that it was governed by the forum stateâs law. Id. In contrast, Gustafson had not signed an employment agreement, but he did sign a confidentiality agreement that was executed in Michigan, made no reference to Texas, and did not require any performance in Texas. Id. Lastly, the court recognized that a breach of the confidentiality agreement âcould cause an injury in Texas,â but concluded that âthe mere fact that an injury is caused in the forum state is insufficient to establish minimum contacts.â Id.
In an effort to identify contacts substantially connected to the litigationâs operative facts, the appellants contend that Rawlinson failed to negate all bases of jurisdiction alleged against him because he has provided no evidence to show that the various agreements and restrictive covenants did not require performance in Texas. By this argument, the appellants appear to suggest that Texas has personal jurisdiction over Rawlinson because he was contractually prohibited from competing against Technology Partners in Texas â and apparently anywhere else in the world. Consequently, the appellants argue, the covenants require performance in Texas and so personal jurisdiction is proper here. The appellants also stress that Rawlinson has admitted that he breached the non-compete agreements, but we do not consider the merits of appellantsâ claims when conducting a personal-jurisdiction analysis. See Weldon-Francke v. Fisher, 237 S.W.3d 789, 792 (Tex.App.-Houston [14th Dist.] 2007, no pet.).
We disagree that a nonresident may be automatically subject to personal jurisdiction in any forum in which he is prohibited from engaging in business based on a non-compete agreement, without regard to whether he actually engaged in competitive activities in the forum or otherwise lacked minimum contacts. Further, we conclude that an agreement not to compete in a forum is more properly viewed as an agreement to refrain from performance in the forum rather than a contact with the forum. As one court explained:
âIf the question is whether an individualâs contract with an out of state party alone can automatically establish sufficient minimum contacts in the other partyâs home forum, we believe the answer is clearly that it cannot.â This holding must apply with particular force where the contract is one to refrain from doing an act in Texas.
Dowdy v. Miller, 122 S.W.3d 816, 822 (Tex.App.-Amarillo 2003, no pet.) (quoting Burger King, 471 U.S. at 478, 105 S.Ct. 2174)) (emphasis added); see also Brocail, 132 S.W.3d at 564 (â â[I]t is difficult to see how a failure to act could meet the purposeful availment requirement needed to establish personal jurisdiction.â â) (citing Anderson v. Bechtle, No. 01-00593-CV, 2001 WL 930205, at *2 ((Tex.App.-Houston [1st Dist.] Aug. 16, 2001, no pet.) (not designated for publication)). Therefore, we decline to adopt a position that an employee, by agreeing to a non-compete or non-solicitation agreement, is effectively consenting to jurisdiction as far-reaching as the scope of the agreement, which in this case is worldwide. It cannot be enough that Rawlinson simply agreed not to compete or solicit clients in Texas. To hold otherwise would supplant the minimum-contacts analysis and thus vitiate the due-process requirements for personal jurisdiction.
*408 Based on the foregoing, we hold that the trial court did not err in granting Rawlin-sonâs special appearance and dismissing him from the case because Rawlinson lacks the minimum contacts required for the trial court to exercise personal jurisdiction over him. Therefore, we do not consider whether the exercise of personal jurisdiction over him comports with traditional notions of fair play and substantial justice. * * *
We affirm the trial courtâs judgment.
. Although it is a defendant below, EquaTer-ra, Inc. is not a parly to this appeal. Equa-Terra Europe is not a party to this lawsuit.
. Here, the trial court held a hearing on Raw-linsonâs special appearance, but we have no reporterâs record of the hearing. Because neither party contends the hearing was evi-dentiary and the record does not indicate otherwise, we will presume that the hearing was non-evidentiary and that the trial court considered only the evidence filed with the clerk. See Michiana Easy Livinâ Country, Inc. v. Holten, 168 S.W.3d 777, 784 (Tex.2005).
. As an initial matter, Rawlinson contends that the appellants failed to plead adequate jurisdictional facts to shift the burden to him to negate every pleaded basis for jurisdiction over him. We disagree. As discussed above, the appellants alleged that Rawlinson entered into contracts with Texas companies calling for performance in part in Texas, and that he breached his agreements with the appellants. The appellants also alleged that Rawlinson "has engaged in significant activities in or related to Texas, [and] has conducted business and negotiated in Texas with Texas residents.â Liberally construing the pleadings, we conclude that the appellants' jurisdictional allegations were sufficient to shift the burden to Rawlinson to negate the jurisdictional allegations. See Tex. Civ. Prac. & Rem.Code Ann. § 17.042 (acts that may constitute âdoing businessâ include "contractfing] by mail or otherwise with a Texas resident and either party is to perform the contract in whole or in part in this stateâ); Huynh v. Nguyen, 180 S.W.3d 608, 619-20 (Tex.App.-Houston [14th Dist.] 2005, no pet.) (stating plaintiff's minimal pleading requirement is satisfied by an allegation that the nonresident defendants are doing business in Texas).
. TravelJungle also contended that it could not be subject to personal jurisdiction because it did not know where Americanâs servers were located, but the court rejected Travel-Jungle's contention, concluding that Travel-Jungle purposefully directed its activities to American's website and so âshould have been awareâ that it would be subject to jurisdiction in any forum where the websiteâs servers were located. See TravelJungle, 212 S.W.3d at 851. In reaching this conclusion, the court drew an analogy to federal cases in which senders of spam emails were held to be subject to personal jurisdiction in the forum in which their emails were received or where the servers processing those emails were located because the senders purposefully targeted email addresses using a particular server and so assumed the risk that they would be haled into a forum where that server is located. See id. at 850-51. In contrast, this case involves no allegations or evidence that Raw-linson purposefully directed any improper activities toward Technology Partners's website or servers, and the facts are not analogous to those involving mass spam emails. Therefore, we do not similarly discount Rawlin-son's assertion that he did not know the location of Technology Partners's servers.