OPINION
This interlocutory appeal follows the trial courts denial of a special appearance.
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After their brother Scott James died, Monty James and Angela Sonnenschein sued Jane Dawson and Accordia Life and Annuity Company, alleging they are the proper beneficiaries of Scotts life insurance proceeds. Jane,
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a California resident, filed a special appearance, which the district court denied. We reverse the trial courts order and render judgment dismissing all claims against Jane for lack of personal jurisdiction.
Factual Background
Jane has lived in California her whole life. After meeting in California in 1994, Jane and Scott dated on-and-off for approximately twenty-three years. Scott moved from California to Waco, Texas in 2014 to become an Associate Professor of Geosciences at Baylor University. He and Jane maintained their personal relationship long-distance, and in July 2016, Jane and Scott got married in California.
When Jane and Scott married, Jane was a fulltime student finishing her graduate degree at an Irvine, California satellite campus of Pepperdine University. The couple discussed Jane moving to Texas after her fall semester in December 2016, and Jane shipped several boxes of her belongings to Scotts home in Waco. However, after Jane visited Scott in Waco for less than one week following the wedding, the couple decided to get a divorce. Jane filed for divorce in California in October 2016, and the divorce was finalized in January 2018. Though the couple maintained an amicable relationship, Jane never returned to Texas.
Scott purchased a life insurance policy through Accordia in 2008. In 2014, Scott made Jane the primary beneficiary and designated Monty as his contingent beneficiary. In 2018, after Jane and Scotts divorce was finalized, Scott emailed his insurance agent, asking him to “[e]nsure [J]ane is not my beneficiary.” Shortly after, Scott completed an Accordia beneficiary change request form and designated Angela and Monty as his two primary beneficiaries. Accordia then informed Scott the change could not be completed because Scott had not completely provided for 100% of the contingent proceeds, instead designating Monty as his 99% contingent beneficiary. Accordia requested he complete a new beneficiary designation form to correct the problem. However, Scott never did so, and on May 2, 2021, Scott died unexpectedly while visiting family in California.
Following Scotts death, Accordia sent Jane a letter to her home in California containing instructions for how to file a beneficiary claim for Scotts life insurance policy proceeds. Jane completed and returned the form to Accordias Illinois address. Shortly after, Monty informed Accordia he was disputing the beneficiary designations under the policy. This suit followed.
Procedural Background
Monty, a California resident, and Angela, a South Dakota resident, sued Jane and Accordia, an Iowa corporation with its principal place of business in Iowa, in McLennan County on June 17, 2021. They requested declaratory relief that Scotts beneficiary designation—reflecting Jane as his primary life insurance beneficiary—was ineffective under Texas law and his earlier attempt to change his beneficiaries to Monty and Angela was instead effective. The petition stated Jane is a resident of Orange County, California and claimed the court had jurisdiction over Jane because “she was at one point designated a beneficiary of the subject life insurance policy and is a potential claimant to the policy proceeds,” but it made no other allegations to support the district courts ability to exercise personal jurisdiction over her.
Jane responded by timely filing a special appearance. She appended to it an affidavit in which she testified she is not and has never been a Texas resident. She also stated she does not engage in business in Texas, has not committed a tort in Texas, has no place of business in Texas, and has no continuing and systematic contacts with Texas. Jane also affirmed she did not designate herself as the beneficiary of Scotts life insurance policy.
Accordia responded by filing its answer, affirmative defenses, and counterclaim in interpleader. In its counterclaim, Accordia requested the court accept deposit of the policy proceeds into the courts registry. However, at the time of the special appearance hearing, the court had not granted Accordias request, and no funds have been interpleaded.
In response to Janes special appearance, Monty and Angela amended their petition to include additional jurisdictional allegations about Jane. It stated:
Jane Dawson had [ ] minimum contact with the state of Texas as she married Scott James while he was a resident of Texas. She moved to Texas to live with Scott James from approximately July 2016 through approximately September 2016. Her specific contacts are in relation to the issues herein, as she married a Texas resident, moved to Texas to live with him, and is an apparent claimant to the proceeds of a life insurance policy owned by the Texas resident. Jane Dawson is ‘availing herself’ of Texas if she is indeed seeking the proceeds of a policy owned by a longtime Texas resident that she married.
Their first amended petition also added a breach of contract claim against Accordia based on Scotts 2018 attempt to change his beneficiary designations.
Jane then filed a first amended special appearance in which she reiterated her allegations from her original special appearance. Additionally, she responded to Monty and Angelas claim that she “moved to Texas” from July through September 2016, stating during this period she was a fulltime student, living in Laguna Niguel, California, and visited Texas for less than one week. Jane also contended during the “entire time” of her twenty-three year relationship with Scott, she resided in California, where they met, married, and divorced. Finally, she stated her extent of involvement with the life insurance policy was limited to receiving Accordias letter with instructions on how to claim benefits, which she states she “filled out ․ in California and mailed it from California back to Accordia in Illinois.” Jane later filed additional documents produced by Accordia, including Scotts application for the life insurance policy and records of his past beneficiary designations, in support of her special appearance.
Monty and Angela responded to Janes first amended special appearance, arguing Jane married a Texas resident, moved to Texas and was “briefly” a Texas resident, and is claiming proceeds from a deceased Texas residents life insurance policy. They conceded “[t]here are no tort, contract or other affirmative claims for relief” against Jane but argued “[t]his case is unique” because Jane is a claimant who could “avoid suit simply by disclaiming any interest” in the policy proceeds. They also contended district courts “ ‘always have quasi in rem jurisdiction to determine who owns funds tendered into the courts registry,’ ” and Texass “interest in resolving the controversy is overwhelming.” Finally, Monty and Angela argued due process concerns are not implicated because federal statutory interpleader, see 28 U.S.C. § 2361—though not at issue here—permits nationwide service of process and relaxes personal jurisdiction requirements. They contend because Texas law permits courts to “exercise personal jurisdiction[ ] as far as constitutional limits permit,” the district courts exercise of personal jurisdiction over Jane “as an interpleader claimant necessarily passes constitutional muster,” and “Accordias interpleader rights will be frustrated” otherwise. Their response appended Jane and Scotts divorce paperwork, several emails between Scott and various third parties, and a declaration from Monty. In response, Jane objected to Montys affidavit because it contains inadmissible hearsay, is not based on Montys personal knowledge, and contains statements that are not positive factual assertions.
On September 14, 2021, the district court held an evidentiary hearing on Janes special appearance. Jane testified to the facts set forth in her special appearance affidavits and again stated she is not nor has she ever been a Texas resident. She also affirmed she never made any effort to change her voter registration, mailing address, or drivers license to Texas from California.
In argument, Monty and Angelas counsel conceded the “dispute as to whether or not Jane Dawson moved to Texas in July or was planning to move in later ․ is irrelevant,” and clarified “were not arguing that Jane Dawsons five days in Texas are sufficient to confer jurisdiction over her.” Instead, counsel contended the “only thing thats relevant is ․ she [is] claiming the proceeds of an asset owned by a Texan,” and “Scott James was a Texan.” Monty and Angelas counsel again invoked the federal interpleader statute, though agreed it does not apply here.
The district court denied Janes special appearance. Jane requested the court issue findings of fact and conclusions of law, although none appear in our record. Jane appealed.
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Standard of Review
We review a trial courts denial of a special appearance de novo. Fed. Corp., Inc. v. Truhlar, 632 S.W.3d 697, 716 (Tex.App.—El Paso 2021, pet. denied). Whether a court has personal jurisdiction over a defendant is a legal question. BMC Software Belgium, N.V. v. Marchand, 83 S.W.3d 789, 794 (Tex. 2002).
When, as here, the trial court does not make findings of fact and conclusions of law, all facts necessary to support the judgment and which are supported by the evidence are implied. Id. at 795. However, if the appellate record includes the clerks and reporters records, as this cases appellate record does, these implied findings are not conclusive and may be challenged for legal and factual sufficiency of the evidence. Id. When the relevant facts are undisputed, we need not consider any implied findings of fact and consider only the legal question of whether the undisputed facts establish Texas jurisdiction. Old Republic Natl Title Ins. Co. v. Bell, 549 S.W.3d 550, 558 (Tex. 2018).
Applicable Law
“A court must have both subject matter jurisdiction over a case and personal jurisdiction over the parties to issue a binding judgment.” Luciano v. SprayFoamPolymers.com, LLC, 625 S.W.3d 1, 7–8 (Tex. 2021). A Texas court may exercise personal jurisdiction over a nonresident “when two criteria are satisfied: (1) the Texas long arm statute must grant jurisdiction; and (2) the exercise of jurisdiction must comport with federal and state constitutional guarantees of due process.” Searcy v. Parex Res., Inc., 496 S.W.3d 58, 66 (Tex. 2016)[Citations omitted].
The Texas long-arm statute authorizes the exercise of jurisdiction over a nonresident defendant doing business in Texas. Tex.Civ.Prac.& Rem.Code Ann. §§ 17.041–.045. Texass long-arm statute specifically provides:
In addition to other acts that may constitute doing business, a nonresident does business in this state if the nonresident:
(1) contracts by mail or otherwise with a Texas resident and either party is to perform the contract in whole or in part in this state;
(2) commits a tort in whole or in part in this state; or
(3) recruits Texas residents, directly or through an intermediary located in this state, for employment inside or outside this state.
Id. § 17.042. The long-arm statutes “broad doing-business language allows [it] to reach as far as the federal constitutional requirements of due process will allow.” Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569, 575 (Tex. 2007)[Internal quotation marks omitted].
The plaintiff bears the initial burden of pleading sufficient factual allegations to bring a nonresident defendant within the reach of the long-arm statute. BMC Software Belgium, 83 S.W.3d at 793. This notice-pleading requirement is “minimal” and may be satisfied with an allegation that the nonresident defendant is doing business in Texas or committed tortious acts in Texas. Gaddy v. Fenenbock, 652 S.W.3d 860, 871 (Tex.App.—El Paso 2022, no pet.). However, if the plaintiff does not plead sufficient facts to bring the defendant within reach of the long-arm statute, the defendant needs to prove only that he or she is not a Texas resident. Kelly v. Gen. Interior Const., Inc., 301 S.W.3d 653, 658–59 (Tex. 2010). If the petition is insufficient to bring the defendant under the long-arm statute, the plaintiff should amend the pleading to include sufficient factual allegations. Id. at 659.
If the plaintiff does plead sufficient facts to meet this initial burden, the burden then shifts to the nonresident defendant to negate all jurisdictional bases alleged by the plaintiff. Id. at 658. “The defendant can negate jurisdiction on either a factual or legal basis.” Id. at 659. On a factual basis, “the defendant can present evidence that it has no contacts with Texas, effectively disproving the plaintiffs allegations.” Id. On a legal basis, the defendant can show that even if the alleged facts are true, the evidence is legally insufficient to establish jurisdiction; the defendants contacts with Texas fall short of purposeful availment; for specific jurisdiction, the claims do not arise from the contacts; or traditional notions of fair play and substantial justice would be offended by the exercise of jurisdiction. Id.
The exercise of jurisdiction meets federal due-process standards “only if the defendant has established ‘minimum contacts’ with the forum state such that maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’ ” Luciano, 625 S.W.3d at 8 (quoting Intl Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945)). “Courts analyze whether the due-process standard is met from two perspectives: general jurisdiction and specific jurisdiction.” Southwire Co., LLC v. Sparks, No. 02-21-00126-CV, 2021 WL 5368692, at *4 (Tex.App.—Fort Worth Nov. 18, 2021, no pet.)(mem. op.)(citing Luciano, 625 S.W.3d at 8). “A court has general jurisdiction over a nonresident defendant whose ‘affiliations with the State are so [ ]continuous and systematic[ ] as to render [it] essentially at home in the forum State.’ ” Luciano, 625 S.W.3d at 8 (quoting TV Azteca v. Ruiz, 490 S.W.3d 29, 37 (Tex. 2016)). “By contrast, specific jurisdiction ‘covers defendants less intimately connected with a State, but only as to a narrower class of claims.’ ” Id. (quoting Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct., ––– U.S. ––––, 141 S.Ct. 1017, 1024, 209 L.Ed.2d 225 (2021)). “Specific jurisdiction is not as exacting as general jurisdiction in that the contacts may be more sporadic or isolated so long as the cause of action arises out of those contacts.” Gaddy, 652 S.W.3d at 871 (citing Spir Star AG v. Kimich, 310 S.W.3d 868, 873 (Tex. 2010)). With specific jurisdiction, a minimum-contacts showing requires two things: (1) that “the defendant purposefully avails itself of the privilege of conducting activities in the forum state[;]” and (2) “the suit ‘arise[s] out of or relate[s] to the defendants contacts with the forum[.]’ ” Luciano, 625 S.W.3d at 8–9.
The first prong of the specific-jurisdiction inquiry is purposeful availment. Id. To determine whether a nonresident defendant has purposefully availed himself of the privilege of conducting activities in Texas, courts consider three factors. E.g., Old Republic Natl Title Ins., 549 S.W.3d at 559. “First, it is only the defendants contacts with the forum that count: purposeful availment ‘ensures that a defendant will not be haled into a jurisdiction solely as a result of ․ the ‘unilateral activity of another party or a third person.’ ” Michiana Easy Livin’ Country, Inc. v. Holten, 168 S.W.3d 777, 785 (Tex. 2005)(quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985)). Second, “the contacts relied upon must be purposeful rather than random, fortuitous, or attenuated.” Moki Mac, 221 S.W.3d at 575. Nonresident defendants “who ‘reach out beyond one state and create continuing relationships and obligations with citizens of another state’ are subject to the jurisdiction of the latter in suits based on their activities.” Michiana, 168 S.W.3d at 785 (quoting Burger King, 471 U.S. at 473, 105 S.Ct. 2174). Third, the “defendant must seek some benefit, advantage, or profit by ‘availing’ itself of the jurisdiction.” Moki Mac, 221 S.W.3d at 575 (quoting Michiana, 168 S.W.3d at 785). That is because “[j]urisdiction is premised on notions of implied consent—that by invoking the benefits and protections of a forums laws, a nonresident consents to suit there.” Michiana, 168 S.W.3d at 785 (citing World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297, 100 S.Ct. 580, 62 L.Ed.2d 490 (1980)).
The second prong of the specific-jurisdiction inquiry is relatedness. Even if courts find purposeful availment, specific jurisdiction exists only “when the cause of action arises from or is related to purposeful activities in the state.” Moncrief Oil Intern. Inc. v. OAO Gazprom, 414 S.W.3d 142, 150 (Tex. 2013). The relatedness requirement “lies at the heart of specific jurisdiction by defining the required nexus between the nonresident defendant, the litigation, and the forum.” Moki Mac, 221 S.W.3d at 579.
Analysis
On appeal, Jane contends the district court erred in denying her special appearance because she is not a Texas resident, the minimum-contacts requirement is not established, and the exercise of jurisdiction would offend traditional notions of fair play and substantial justice. Specifically, she maintains the evidence is factually and legally insufficient to support a finding of specific jurisdiction simply because she applied for Scotts life insurance policy proceeds.
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She also contests Monty and Angelas characterization of this case as quasi in rem or an interpleader action. Because Monty and Angela contend a quasi in rem or interpleader case is subject to different jurisdictional standards, we consider the latter issue first.
1. This case is not an interpleader action.
Jane refutes Monty and Angelas characterization of this case as quasi in rem based on Accordias counterclaim in interpleader. She also argues in the alternative that even if this case were quasi in rem, the same personal jurisdiction standard applies and requires minimum contacts with the forum state. Monty and Angela contend this is an interpleader case and, as such, a quasi in rem proceeding. They maintain Jane has minimum contacts “with Texas, with Scott James, and with the single disputed asset” to meet the “minimal threshold” for personal jurisdiction in a quasi in rem dispute.
It is hornbook law that a state may exercise personal jurisdiction over a non-resident defendant “only if the defendant has ‘certain minimum contacts with the forum such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.’ ” Rush v. Savchuk, 444 U.S. 320, 327, 100 S.Ct. 571, 62 L.Ed.2d 516 (1980)(quoting Intl Shoe, 326 U.S. at 316, 66 S.Ct. 154). Indeed, “all assertions of state-court jurisdiction must be evaluated according to the standards set forth in International Shoe and its progeny.” Shaffer v. Heitner, 433 U.S. 186, 212, 97 S.Ct. 2569, 53 L.Ed.2d 683 (1977)[Emphasis added]. Shaffer makes clear that all assertions of jurisdiction, including quasi in rem, are subject to “the same test of ‘fair play and substantial justice’ as governs assertions of jurisdiction in personam[.]” Id. at 207, 97 S.Ct. 2569. Accordingly, there is no lower burden Monty and Angela are entitled to in pleading jurisdictional facts to support the trial courts exercise of personal jurisdiction over Jane.
Further, this case is not an interpleader action. While Accordia filed its interpleader in counterclaim, the district court has yet to grant that request, and no funds have been deposited into the courts registry. The caselaw Monty and Angela cite supporting a trial courts quasi in rem jurisdiction to determine who owns funds tendered into the courts registry is therefore inapposite. See, e.g., Madeksho v. Abraham, Watkins, Nichols & Friend, 112 S.W.3d 679, 686–87 (Tex.App.— Houston [14th Dist.] 2003, pet. denied)(concluding trial court had subject-matter jurisdiction post-judgment to determine ownership of funds deposited in courts registry). The case before us is a declaratory judgment action with a breach-of-contract claim against Accordia. In any event, even in a Texas interpleader action, the trial court still must properly exercise personal jurisdiction over the parties, who may challenge that exercise through a timely filed special appearance. See Kehoe v. Pollack, 526 S.W.3d 781, 789–90 (Tex.App.—Houston [14th Dist.] 2017, no pet.)(noting process for filing a special appearance in interpleader action); Law Offices of Lin & Associates v. Deng, No. 14-07-00729-CV, 2009 WL 36480, at *2 (Tex.App.—Houston [14th Dist.] Jan. 8, 2009, no pet.)(mem. op.)(discussing partys right to challenge personal jurisdiction on service-of-process grounds in interpleader matter). Jane did just that.
Monty and Angelas argument that the Federal Interpleader Act confers jurisdiction is similarly misplaced because, as they readily concede, federal statutory interpleader is not at issue here. Simply because an uninvoked federal statute permits nationwide service of process does not provide legal support for the exercise of personal jurisdiction over Jane in this case, in which that statute is irrelevant. See 28 U.S.C.A. § 2361. Accepting Monty and Angelas argument otherwise would vitiate the minimum-contacts analysis and upend well-settled constitutional requirements for personal jurisdiction.
Issue One is sustained.
2. The trial court erred in denying Janes special appearance.
The applicable law on burden shifting in special appearance cases is well settled: “If the plaintiff fails to plead facts bringing the defendant within reach of the long-arm statute (i.e., for a tort claim, that the defendant committed tortious acts in Texas), the defendant need only prove that it does not live in Texas to negate jurisdiction.” Kelly, 301 S.W.3d at 658–59 [Citation omitted]. Here, Monty and Angelas live petition lacks sufficient allegations to support the exercise of specific jurisdiction. In other words, the trial court lacks jurisdiction over Jane because Monty and Angela do not allege any conduct sufficient to establish minimum contacts in Texas or that directly relate to the cause of action asserted.
Monty and Angela did not plead sufficient facts to bring Jane within the reach of the Texas long-arm statute. In their amended petition, the only jurisdictional allegation about Jane is that she “was at one point designated a beneficiary of the subject life insurance policy and is a potential claimant to the policy proceeds.” The extent of their allegations of Janes contacts with Texas are limited to her relationship with Scott: They allege Jane “married a Texas resident, moved to Texas to live with him,
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and is an apparent claimant to the proceeds of a life insurance policy owned by the Texas resident.” But Monty and Angelas allegations regarding Janes contacts with Scott are irrelevant because “our ‘minimum contacts’ analysis looks to the defendants contacts with the forum State itself, not the defendants contacts with persons who reside there.” Walden v. Fiore, 571 U.S. 277, 285, 134 S.Ct. 1115, 188 L.Ed.2d 12 (2014).
Further, Monty and Angelas jurisdictional allegations rely upon Scott naming Jane as a beneficiary to his life insurance policy. However, “the unilateral acts of a third-party cannot establish minimum contacts.” Mesa Underwriters Speciality Ins. Co. v. ABCO Builders, Inc., No. 4:18-CV-00221-O, 2018 WL 6737684, at *4 (N.D. Tex. Nov. 8, 2018)(applying Texas law); see also Dawson-Austin v. Austin, 968 S.W.2d 319, 327 (Tex. 1998)(concluding the unilateral actions of one party could not create the contacts between the state and the other party necessary for jurisdiction in a divorce action); Quimby, 2019 WL 2528200, at *3 (affirming trial courts grant of special appearance because, among other things, plaintiffs maintenance of Texas residency throughout their marriage was irrelevant for the purpose of asserting jurisdiction over the nonresident defendant).
In short, instead of following the clear and settled law regarding burdens of proof for nonresident personal jurisdiction, Monty and Angela attempt to carve out an exception based on the facts of this case.
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There is no law to support their position. And because the relevant facts are undisputed, we are left with the purely legal question of whether the undisputed facts establish Texas jurisdiction. Old Republic Natl Title Ins. Co., 549 S.W.3d at 558. Because Monty and Angelas only jurisdictional allegations are based on Janes contact with a Texas resident, not the forum state itself, and are a result of Scotts unilateral conduct, the trial court erred by denying her special appearance.
Accordingly, because Monty and Angela did not meet their burden to plead sufficient facts to bring Jane within the reach of the Texas long-arm statute, all Jane had to do was prove she is not a Texas resident. See Kelly, 301 S.W.3d at 658–59. Janes affidavit establishes she is a California resident who has never lived in Texas. Monty and Angela did not challenge that fact, nor did they “present any responsive evidence establishing the requisite link with Texas.” Id. at 660. Having met her burden of proof, Janes special appearance should have been granted.
Issue Two is sustained.
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CONCLUSION
For the above reasons, we reverse the district courts denial of Janes special appearance and render judgment granting the same. We dismiss the claims against her for lack of personal jurisdiction.
FOOTNOTES
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. This case was transferred from our sister court, the Tenth Court of Appeals, pursuant to the Texas Supreme Courts docket equalization efforts. See Tex.Govt Code Ann. section 73.001. We follow the precedent of the Waco Court of Appeals to the extent they might conflict with our own. See Tex.R.App.P. 41.3.
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. Because some individuals involved in this matter share the same last name, we refer to each person by their first name.
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. Accordia filed notice with this Court stating it is a disinterested stakeholder as to Janes special appearance and intends to proceed with an interpleader action after the resolution of this appeal. It did not file a merits brief in this appeal.
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. Monty and Angela do not argue general jurisdiction applies.
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. Monty and Angela abandoned this argument at Janes special appearance hearing and do not raise it on appeal. In any event, the fact that Jane visited Texas one time, without more, “does not constitute purposeful availment of the benefits and protections of the laws of the State of Texas sufficient to confer personal jurisdiction.” Quimby v. Quimby, No. 01-18-00705-CV, 2019 WL 2528200, at *3 (Tex.App.—Houston [1st Dist.] June 20, 2019, no pet.)(mem. op.) (citing Burger King, 471 U.S. at 474–76, 105 S.Ct. 2174)(concluding the same).
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. For example, counsel for Monty and Angela argued at the hearing on the motion that cases involving minimum contacts are “legally irrelevant” in this situation because Monty and Angela named Jane as a defendant in a declaratory judgment action rather than suing her for monetary damages. Similarly, on appeal, Monty and Angela assert “[t]his case is unique and does not fit within the framework of traditional personal jurisdictional analysis.”
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. Because Monty and Angela failed to plead sufficient allegations to bring Jane within the reach of the trial courts jurisdiction, we need not consider whether the exercise of jurisdiction comports with fair play and substantial justice.
YVONNE T. RODRIGUEZ, Chief Justice