Xtra Lease LLC v. Genesis Truckyard, LLC

2014 WL 6997326 (2014)

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Xtra Lease LLC v. Genesis Truckyard, LLC

Texas Court of Appeals
2014 WL 6997326 (2014)

Facts

Xtra Lease LLC (Xtra) (plaintiff) entered into an equipment-lease agreement with Genesis Express, Ltd. (Express) in 2012. The agreement had a forum-selection clause selecting a Missouri state court. In 2013 Xtra sued Express and another company, Genesis Truckyard, LLC (Truckyard) (defendant), in Missouri state court for breach of the agreement. In the Missouri case, Xtra alleged that Truckyard was liable for Xtra through successor liability. Express was owned and operated by Thomas Ondari, and Truckyard was owned and operated by Beatrice Ogango, Ondari’s wife. Express ceased doing business around the time that Truckyard began doing business, and Truckyard had the same business model as Express. Further, Truckyard operated with the same people, from the same location as Express in a building owned by Ondari. However, Truckyard did not purchase any of Express’s assets. The Missouri court granted default judgment in favor of Xtra, which then filed the judgment in Texas to enforce it. The trial court initially domesticated the judgment, but then the court granted Truckyard’s motion to vacate the judgment. Truckyard claimed the Missouri court did not have personal jurisdiction over Truckyard, because Truckyard did not have any contacts with Missouri and did not lease any equipment or have any possession of equipment from Xtra, nor did Truckyard conduct any business with Xtra. The court held that Truckyard was not a successor of Express because it did not acquire Express’s assets, and that Truckyard did not have the requisite minimum contacts with Missouri. Accordingly, the court ruled it did not have personal jurisdiction over Express, and full faith and credit should not be extended to the judgment. Xtra appealed.

Rule of Law

Issue

Holding and Reasoning (Meier, J.)

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