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Note: A.D.I.M. (Seller), a Texas-based company, agreed to sell goods to Alma-Mater Collection, LLC (Buyer), a Georgia-based company, at a trade show in Dallas, Texas, USA. Seller told Buyer that it would not ship the goods unless Buyer either paid in advance or obtained a letter of credit. A principal of Buyer contacted Crossroads (Agent), a Florida-based financial company, to procure the letter of credit from Sterling National Bank CST, Inc., a New York based corporation (Issuer). Seller claimed that although it shipped the goods, it was only paid for one of the four shipments.

Seller sued Agent to recover USD 98,442 for the unpaid shipped goods and other damages, and also claimed that Agent’s representatives made misrepresentations about the shipments, the letter of credit, and payment of the goods.

The 191st Judicial District Court, Dallas County, Texas denied Agent the right to make a special appearance. On appeal, Agent claimed that there is no special jurisdiction because it did not deliberately direct its participation in the transaction between Buyer and Seller to Texas, and further claimed that there is no general jurisdiction because it does not conduct business per se in Texas. The Court of Appeals of Texas, Fifth District, in an opinion by Fillmore, J. ruled that Agent’s connections with Texas were inadequate to establish specific or general personal jurisdiction. Thus, on appeal Fillmore, J. reversed the trial court judgment, granting Agent’s special appearance and dismissed Seller’s claims against Agent.

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