No network, no personal jurisdiction.

Originally published by David Coale.

The Fifth Court rejected the exercise of personal jurisdiction in Texas over a Mexican reinsurance broker in Cooper Gay Martinez del Rio y Asociados v. Elamex, S.A. de C.V., holding: “Cornerstone [Healthcare Group Holding, Inc. v. Nautic Management, 493 S.W.3d 65 (2016)] is distinguishable. CGM did not spearhead or direct appellees’ purchase of the Policy. CGM did not seek out appellees in Texas, insure appellees’ Texas assets, or seek to profit from business in Texas. Further, unlike in Cornerstone, there is no evidence CGM was created for or created subsidiary entities for the purpose of conducting business in Texas, and appellees do not allege this occurred. Rather, Elamex, a Mexican entity, contacted HUB, which began a chain of communications eventually leading to CGM, to find an insurer for its properties. Afirme, a Mexican entity that provided that Policy, sought reinsurance through CGM and paid a commission to CGM. At no point did CGM seek out a Texas company or Texas assets in order to benefit, profit, or take advantage of Texas such that it impliedly consented to suit here.” No. 05-16-01436-CV (Aug. 22, 2017) (mem. op.)

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