Assignment - Law and Ethics

Raul Leal, the owner and operator of Texas Labor Contractors in East Texas, contacted Poverty Point Produce, Inc., which operates a sweet potato farm in Louisiana, and offered to provide field workers.

Poverty Point accepted the offer. Poverty Point told Leal the number of workers needed and gave him forms for them to fill out and sign.

Leal placed an ad in a newspaper in Brownsville, Texas. Job applicants were directed to Leal's car dealership in Texas where they were told the details of the work. Leal recruited, among others, Elias Moreno, who lives in the Rio Grande Valley in Texas, and transported Moreno and the others to Poverty Point's farm in Louisiana. When the job was done, the workers were returned to Texas.

All of the meetings between Poverty Point and Leal occurred in Louisiana. All of the farm work was done in Louisiana. Poverty Point has no offices, bank accounts, or phone listings in Texas. It does not advertise or solicit business in Texas.

Moreno filed a lawsuit in a federal district court in Texas against Poverty Point, alleging violations of labor law related to his recruitment, transportation, and work. Poverty Point filed a motion to dismiss the suit on the ground that the court in Texas did not have personal jurisdiction over Poverty Point.

I. Who were the parties to this case?

a. Plaintiff:

b. Defendant:

2. Who was Raul Leal? What did he do?

3. Which state was the plaintiff from? (highlight one) Texas Louisiana

4. Which state was the defendant from? (highlight one) Texas Louisiana

5. Where was the lawsuit filed? (highlight one) Texas Louisiana

6. What argument can be made that Poverty Point is not subject to personal jurisdiction in the court in Texas?

7. What argument can be made that Poverty Point is subject to personal jurisdiction in the court in Texas?

8. Consider the purpose of the law on personal jurisdiction over nonresident corporate or business defendants. Did Poverty Point take advantage of an opportunity to do business in Texas? Explain.

9. How should the court rule on Poverty Point's motion? (highlight one)

a. Grant the motion to dismiss because the court does not have personal jurisdiction over Poverty Point

b. Deny the motion to dismiss because the court has personal jurisdiction over Poverty Point.