Wien Air Alaska v. Brandt

Wien Air Alaska (Wien Air) (plaintiff) was based in Texas and owned by Thor Tjonveit. Wien Air employed German citizen Gerald Brandt as an attorney from August 1989 to April 1991. Brandt traveled to Texas in 1989 to help Tjonveit purchase Wien Air and in April 1991 for a meeting. Brandt conducted the rest of his representation from abroad, including assisting Wien Air in planning an expansion to eastern Europe. Wien Air discovered in 1990 that Brandt’s law partner was working with a competing airline, GAC Trans-Air Carrier Lease GmbH Flugzeugleasing (GAC), to expand to eastern Europe. Brandt suggested Wien Air buy GAC. Tjonveit and GAC negotiated a purchase, and Tjonveit attempted to close the deal several times. Eventually, Brandt informed Tjonveit that the agreement would not be fulfilled and the promised GAC stock would not be delivered. Brandt sent numerous communications from abroad to Texas during his legal representation, including letters, faxes, and phone calls. Many of these communications made misrepresentations about the GAC deal or omitted material information. Wien Air sued Brandt in Texas state court for fraud, and the case was removed to federal court. The district court reviewed the pleadings and granted Brandt’s motion to dismiss for lack of jurisdiction. Wien Air appealed, arguing Brandt was subject to Texas jurisdiction under the Texas long-arm statute.