The defendant's argument is pretty simple, and comes down to the fact that the main basis for personal jurisdiction is a single phone call by Waid and that generally, a single phone call does not constitute sufficient minimum contacts to exert personal jurisdiction within the bounds of due process. Real 1L Civ Pro stuff with Int'l Shoe and all that jazz.
The argument for jurisdiction is based not on general jurisdiction, i.e. that Waid has consistently had a practice of dealing with Texas or otherwise would expect to be haled into court in Texas on general principle, but that he purposefully availed himself of the jurisdiction for his own benefit, and at least with regard to that contact, he is subject to specific jurisdiction.
Most of Reeve's/Zaid's argument is pretty boilerplate and I won't go into it. Here's the nugget of what I consider the strongest part of the argument:
"[C]hanges in technology have made reliance on phone calls obsolete as proof of purposeful availment. While the ubiquity of “caller ID” may allow nonresidents to know a caller’s telephone number, that number no longer necessarily indicates anything about the caller’s location. If jurisdiction can be based on phone conversations “directed at” a forum, how does a defendant avail itself of any jurisdiction when it can never know where the other party has forwarded calls or traveled with a mobile phone?"
Michiana Easy Livin’ Country, Inc. v. Holten, 168 S.W.3d 777, 791 (Tex. 2005); Lonestar Livestock, 2015 WL 3756501, at **3-4 (“Communications with the plaintiff in the forum state are insufficient….The fact that the parties exchanged hundreds of phone calls, texts, and emails are also insufficient contacts.”).
On paper, this looks reasonably good, but this case is distinguishable in a number of obvious ways. For instance, in the
Michiana case cited by the defendant, the actual facts are pretty simple:
The sale at issue here was initiated entirely by Holten. Seeking a cheaper price than he could get from any of Coachmen's many dealers in Texas, Holten called the Coachmen factory. He was informed that Coachmen did not sell directly from the factory, but that a lower price could be obtained from Michiana, a "factory outlet." Holten obtained Michiana's number from the factory and placed the call that initiated the transaction here.
The RV was constructed and equipped outside Texas. It was paid for outside Texas. It was shipped to Texas at Holten's request and entirely at his expense.
Michiana at 784.
In that case, the defendant, an Indiana corporation, did nothing to seek out business in Texas, only did business with a Texas resident because he specifically reached out and called them. It was the choice of the Texas plaintiff not to buy locally, but to go out and choose an Indiana corporation. The situation there is really barely different than if he had simply bought something there while driving through the state, and their only purposeful contact with the plaintiff was picking up the phone when he called them.
Waid, by comparison, either knew or should have known he was calling a Texas corporation, and if he's calling them to try to get them to breach a contract, that seems like fairly important business that he should only do when knowing what he's doing. The result he was seeking was the breach of a contract in Texas by a Texas resident. Where would he expect any legal proceedings arising out of this obviously tortious behavior to be litigated?
In the
Michiana case, the defendant was the recipient of the call. The Texas resident was someone who had called
them with no prompting.
Here, it's Waid who deliberately called the Texas resident.
Quite simply, you don't get to "reach out and hit someone" and then expect the case is going to happen where you live, rather than where you deliberately caused the harm. Due process does not require every other party to the litigation, as well as innocent third parties (like Antarctic) get massively inconvenienced on behalf of the defendant who deliberately created the mess in the first place, and created it in Texas.
tl;dr Zaid has realized he's going to get his ass handed to him in Texas and is desperate to keep the case out of Texas. Unfortunately, he has no really good argument for this and has to make silly ones instead.
Waid and Zaid just burned through all of their goodwill advantage by making these frivolous arguments and copy-pasting reams of Gamergate clickbait into the court record.
The argument isn't very good but I wouldn't go so far as to call it sanctionably frivolous.
Cut and pasting weird, irrelevant shit like blog posts from friends of Waid doesn't really impress me, though.