TX STATETexas Supreme Court
2010

Kelly v. General Interior Construction, Inc.

301 S.W.3d 653Texas Supreme Court • Decided 2010Modified
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HOLDING

A Texas subcontractor (GIC) sued Arizona-based officers of a general contractor (Diva) for breach of contract and fraud over a Houston hotel renovation project. The Texas Supreme Court ruled that the court had no jurisdiction over the Arizona defendants because GIC failed to allege they committed any wrongful acts in Texas. The decision matters because it shows you must prove defendants have sufficient connection to Texas before suing them there—simply doing business with a Texas company isn't enough.

KEY FINDINGS

Flow-Down

When suing out-of-state contractors or their owners, clearly allege specific wrongful acts they committed in your state, not just that they did business there

FULL COURT OPINION