HOUSTON – A state appeals court has supported a Houston lower court’s decision to toss a lawsuit accusing a loan servicer of deceptive trade practices, fraud and negligent misrepresentation.
A 26-page opinion issued by the Texas First District Court of Appeals on April 25 affirmed the Harris County 270th District Court’s dismissal of the suit brought by 11500 Space Center LLC, Space Center Boulevard Land Development LP, Cullen’s LLC and Bermuda Dunes Development LP against Private Capital Group, Inc.
Justice Evelyn V. Keyes wrote the opinion, and justices Laura Higley and Sarah Landau concurred.
The appellants presented their case, which alleged PCG “made misrepresentations that caused them to overpay certain fees and interest on their loan” of approximately $11.5 million, after the trial court granted the defendant and appellee a special appearance and ultimately dismissed the complaint “for lack of personal jurisdiction without making findings of fact and conclusions of law.”
“Personal jurisdiction over a nonresident is consistent with due process when the nonresident has established minimum contacts with the forum state and the exercise of jurisdiction comports with traditional notions of fair play and substantial justice,” the opinion said.
The court said the “developer’s allegations and the record evidence do not support a finding that PCG’s contacts with Texas were so substantial that it was ‘essentially at home’ in Texas.”
It also disagreed with the appellants’ argument that “PCG purposefully availed itself of the privilege of doing business in Texas by obligating itself under its agreement … to institute foreclosure proceedings on the Texas properties securing the loan should the developers default.”
Texas First Court of Appeals case Number 01-17-00896-CV