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IRN Realty Corp. v. Hernandez

In Texas, corporate entities are presumed to be separate, distinct entities; and a plaintiff attempting to assert personal jurisdiction against one defendant based on the contacts of another entity has the burden to prove a basis for doing so. Appellee failed to meet this burden. Eastland Court of Appeals, No. 11-08-00057-CV, 11-13-2009

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OPINION

Vicenta Hernandez filed suit against IRN Realty Corporation (IRN Corp.) and Salvador Neduelan, alleging various causes of action stemming from the purchase of real estate in Nolan County. Neduelan did not file an answer or a notice of appeal. IRN Corp., a California corporation, filed a special appearance challenging the trial court’s jurisdiction. However, before holding a hearing on the special appearance, the trial court struck IRN Corp.’s pleadings for its failure to make a corporate representative available for deposition. The trial court then rendered a default judgment against the defendants jointly and severally in the amount of $5,914,360. The trial court subsequently entered an order regarding the special appearance, overruling IRN Corp.’s motion to challenge jurisdiction.

IRN Corp. presents ten issues for review. In the first four issues, IRN Corp. contends that the trial court abused its discretion in (1) abating and refusing to conduct a hearing on the special appearance, (2) denying the motion to quash and compelling the deposition, (3) refusing to consider IRN Corp.’s motion for continuance, and (4) awarding monetary sanctions and striking IRN Corp.’s pleadings for failing to appear for a deposition. In its fifth and sixth issues, IRN Corp. challenges the trial court’s denial of its special appearance. In the remaining issues, IRN Corp. contends that the awards for mental anguish and attorney’s fees are not supported by the evidence.

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