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Question about verbal cotnract and personal jurisdiction

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Fluxcapacitor

Junior Member
What is the name of your state (only U.S. law)? Colorado

A person in Texas is trying to sue me (I live in Colorado) over the amount of $2,000 for a breach of contract, in which there was no written or official contract, everything was verbal and also very vague. I do web development work on their eCommerce website and am an individual/independent contractor. What am I likely to expect in regard to personal jurisdiction? They are claiming I would have to go to Texas to appear in court. Will a judge even take a case which is small claims with someone who resides out of state and in which there was no written contract?
 


Zigner

Senior Member, Non-Attorney
You have two separate issues. The jurisdictional issue and the factual issue. The jurisdictional issue will need to be decided before you start talking about whether a valid contract existed.
 

latigo

Senior Member
What is the name of your state (only U.S. law)? Colorado

A person in Texas is trying to sue me (I live in Colorado) over the amount of $2,000 for a breach of contract, in which there was no written or official contract, everything was verbal and also very vague. I do web development work on their eCommerce website and am an individual/independent contractor. What am I likely to expect in regard to personal jurisdiction? They are claiming I would have to go to Texas to appear in court. Will a judge even take a case which is small claims with someone who resides out of state and in which there was no written contract?
Okay Mr. "Back to the Future".

Future or present you and the Texan seem to have a different opinion as to the "vagueness" of the so-called "unofficial contract? Whatever that is supposed to mean. But an agreement by which you admit to having performed "web development work". And having done the work it doesn't matter whether the agreement to do so was verbal or written.
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I don't know what is meant by "trying to sue me", but if a lawsuit against you is filed in Texas, and the claimant pleads Texas' Long Arm Statute and alleges relevant facts bringing it into play, the local court is very apt to find that you were engaged in the act of doing business in Texas and thus assume personal jurisdiction over your person pursuant to that statute. * (Noting that the statute makes no distinction between written and verbal contracts.)

Also, perhaps of interest to you is that in such a case it would not be necessary for the claimant to arrange to have you personally served with process (summons and complaint) in Colorado. All that would be required is for the claimant to make service upon the Secretary of State as your statutory agent. (See: Section 17.044 (b) of the Tex. Civ. Prac. & Rem. Code **)
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So if you are in fact sued in Texas, and it would be foolhardy for the claimant not to at least make that effort, then your only option in contesting the jurisdiction of the Texas court is to make a special appearance in the case for the that limited purpose. By specially appearing you would not be conceding to that court's jurisdiction as would be true if you were to simply file a general denial.

But in order to argue your jurisdictional challenge you would likely need to be personally present. All depending on what the claimant alleges regarding the doing business stuff.

If you don't show and a default judgment is entered, then you would have the opportunity to challenge the court's jurisdiction during the process of the judgment creditor domesticating the judgment in Colorado. But it seems unlikely that a Colorado court would interfere with a Texas court having found jurisdiction under its long arm statute.
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[*] Tex. Civ. Prac. & Rem. Code § 17.042. Acts Constituting Business in This State

In addition to other acts that may constitute doing business, a nonresident does business in this state if the nonresident:

(1) contracts by mail or otherwise with a Texas resident and either party is to perform the contract in whole or in part in this state
;


[**] (b) The secretary of state is an agent for service of process on a nonresident who engages in business in this state, but does not maintain a regular place of business in this state or a designated agent for service of process, in any proceeding that arises out of the business done in this state and to which the nonresident is a party.
 

Fluxcapacitor

Junior Member
I don't see how the court would be apt to find I was engaging in business in Texas.

(1) contracts by mail or otherwise with a Texas resident and either party is to perform the contract in whole or in part in this state;

For one I have never been to Texas in my entire life. And any sort of web work is done on the internet, and not performed in whole or in part at all in Texas.
 

Zigner

Senior Member, Non-Attorney
I don't see how the court would be apt to find I was engaging in business in Texas.

(1) contracts by mail or otherwise with a Texas resident and either party is to perform the contract in whole or in part in this state;

For one I have never been to Texas in my entire life. And any sort of web work is done on the internet, and not performed in whole or in part at all in Texas.
However, one of the parties IS supposed to perform their part of the contract in Texas.
 

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