Turner v. Jack Tar Grand Bahama, Ltd.

Decision Date10 December 1965
Docket NumberNo. 22234.,22234.
Citation353 F.2d 954
PartiesElmo A. TURNER, Jr., Appellant, v. JACK TAR GRAND BAHAMA, LTD., et al., Appellees.
CourtU.S. Court of Appeals — Fifth Circuit

Jim S. Phelps, Houston, Tex., Phelps, Kilgarlin & Snell, Houston, Tex., for appellant.

W. L. Kemper, Houston, Tex., F. M. DeRosa, New York City, The Kempers, by W. L. Kemper, Sr., Houston, Tex., for appellees.

Before TUTTLE, Chief Judge, COLEMAN, Circuit Judge, and HUNTER, District Judge.

TUTTLE, Chief Judge:

This is an appeal from the district court's order granting appellee's motion to dismiss this action for lack of in personam jurisdiction. Appellant brought this suit to recover for personal injuries sustained while attending a sales convention held at appellee's hotel in the Grand Bahamas. It is undisputed that all the convention arrangements were made at the Grand Bahama Hotel itself by appellant's employer.

Jack Tar Grand Bahama, Ltd. is incorporated under the laws of the British Crown Colony of Bahama. It has never obtained a certificate of authority to do business in Texas; nor has it ever had a registered office or agent there. It owns no property in Texas, has no bank account there and is not listed in any Texas telephone directory. Its stockholders' and directors' meetings are conducted in Nassau, where the office of its general counsel is located.

Appellant seeks to base in personam jurisdiction upon the following facts: (a) Appellee's officers and directors reside in Texas; (b) the two Jack Tar hotels located in Texas solicit and take reservations for the Grand Bahama Hotel; (c) appellee's officers sometimes hold conferences and meetings in Texas to discuss the operation of the Grand Bahama Hotel; (d) the Jack Tar Management Company, a Delaware corporation with its principal place of business in Texas, serves appellee primarily as a buying company,1 designed to take advantage of the joint purchasing power of the Jack Tar hotels.2

At the outset, we hold that the district court did not err in limiting appellant to thirty minutes in presenting his case at the hearing on the motion to dismiss. In light of certain statements of appellant's counsel at this hearing together with appellant's failure to seek further discovery during the five-plus months between the filing of appellee's affidavit contesting jurisdiction and the date of the hearing, it cannot be said that this thirty minute limitation constituted an abuse of the trial judge's discretion. See Walker v. Savell, 335 F.2d 536, 539 (5th Cir. 1964).

Regarding the "due process" question, we feel that Article 2031b, Vernon's Texas Rev. Civil Stat. Ann., could not constitutionally be construed by the Texas courts so as to allow the exercise of jurisdiction on the instant facts. Since we have no desire actually to construe Article 2031b before the Texas courts have had a chance to do so, we do not attempt to determine the precise limits to the sweep of this statute. We assume, without deciding, that this Texas statute does provide a basis for the exercise of in personam jurisdiction to the fullest extent permitted under the federal constitution.

Our first step in reaching our conclusion is to note appellant's failure of proof in attempting to attribute to appellee, for purposes of in personam jurisdiction, the activities of the Jack Tar Management Company. Certainly common stock ownership and/or identity of officers do not in themselves establish the agency relationship. See National Hotel Co. v. Motley, 123 S.W.2d 461, 464-465 (Texas Ct.Civ.App. 1939). Nor does the record contain any suggestion that appellee exercises the type of control over the business operations of the Management Company which is essential in order to establish the agency relationship. Cf. Frazier et al. v. Alabama Motor Club, Inc., et al., 5th Cir., 349 F.2d 456.

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  • Roorda v. VOLKSWAGENWERK, AG, Civ. A. No. 76-2237.
    • United States
    • U.S. District Court — District of South Carolina
    • 20 December 1979
    ...this manner. Cannon Mfg. v. Cudahy Packing, supra. Nor is a manufacturer-distributor arrangement sufficient. Turner v. Jack Tar Grand Bahama, Ltd., 353 F.2d 954 (5th Cir. 1965). But where the parent company has complete control over the subsidiary, conducting its business and controlling it......
  • Circus Circus Hotels, Inc. v. Superior Court
    • United States
    • California Court of Appeals Court of Appeals
    • 17 June 1981
    ...the solicitation attracted the plaintiffs. Such cases include Scheidt v. Young, (3d Cir. 1968) 389 F.2d 58, Turner v. Jack Tar Grand Bahama, Ltd., (5th Cir. 1965) 353 F.2d 954, Jacobs v. Lakewood Aircraft Services, Inc., (E.D.Pa.1980) 493 F.Supp. 46, Sanders v. Wiltemp Corp., (S.D.N.Y.1979)......
  • Edwards v. Associated Press
    • United States
    • U.S. Court of Appeals — Fifth Circuit
    • 25 April 1975
    ...the defendant's activities in the local forum, Curtis Publishing Co. v. Birdsong,360 F.2d 344 (5th Cir. 1966). Turner v. Jack Tar Grand Bahama, Ltd., 353 F.2d 954 (5th Cir. 1965), and the acts of the defendant or the consequences caused by the defendant must have a substantial enough connec......
  • Eyerly Aircraft Co. v. Killian
    • United States
    • U.S. Court of Appeals — Fifth Circuit
    • 5 August 1969
    ...to exploit to the maximum the fullest permissible reach under federal constitutional restraints.'" See also Turner v. Jack Tar Grand Bahama, Ltd., 5 Cir. 965, 353 F.2d 954, 956; Lone Star Motor Import, Inc. v. Citroen Cars Corp., 5 Cir. 1961, 288 F. 2d 69, 73; Barnes v. Irving Trust Co., S.......
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