Huynh v. Nguyen10/4/2005
This is an interlocutory appeal from the trial court's order denying the special appearances of two nonresidents. We affirm in part and reverse and remand in part.
I. Factual and Procedural Background
Appellees, Thuy Duong Nguyen ("Thuy"), Ha Dinh Nguyen ("Ha"), Loan T. Duong ("Loan"), Phuong Duong ("Phuong"), and Kim Nguyen Luu ("Kim") (collectively, "the Patients"), brought suit against appellants, Johnny Huynh ("Johnny"), a Texas resident, Thu Thuy Huynh ("Thu"), a Texas resident, and Valley Multi-Specialty Surgery Center ("Valley"), a California corporation. The Patients allege that Johnny, Thu, and Valley recruited them in Houston, Texas, to undergo allegedly unnecessary and improperly billed medical procedures at Valley's clinic in California. The Patients assert that Johnny, Thu, and Valley conspired to defraud insurance companies for allegedly unnecessary diagnostic tests and cosmetic surgeries that allegedly were fraudulently coded and billed as necessary medical procedures covered by insurance.
The Patients allege that Johnny and Thu, acting as agents or employees of Valley, offered them cosmetic surgery at prices substantially below the market rate. According to the Patients, while still in Texas, the Patients would pay Johnny and Thu in cash for their cosmetic surgeries. The Patients would fly to California, and Johnny and Thu would meet them at the airport and transport them to Valley's clinic. At the clinic, the Patients were allegedly induced by Johnny, Thu, and other representatives of Valley to undergo unnecessary diagnostic tests. The Patients assert that, without their knowledge, their insurance companies were billed or overbilled for these tests. The Patients also claim they were induced to sign various documents, authorizations, and assignments of insurance benefits. The Patients assert the doctors, surgeons, and medical providers received payment from the Patients' insurance companies through the assignment of benefits and then shared these allegedly ill-gotten proceeds with Johnny, Thu, Valley, and other surgeons. The Patients assert claims based on alleged common law fraud, violations of the Texas Deceptive Trade Practices Act, negligent misrepresentation, civil conspiracy, and tortious interference.
Thu and Valley filed special appearances contesting personal jurisdiction. Blue Cross and Blue Shield of Alabama ("Blue Cross"), an Alabama corporation which is Loan's and Kim's insurer, filed a petition in intervention, naming Unity Outpatient Surgery Center, L.L.C. ("Unity"), a California corporation, as a defendant. Blue Cross asserts that it was a victim of the foregoing alleged conspiracy and fraudulent scheme. According to Blue Cross, Johnny, Thu, Valley, and Unity conspired to defraud consumers and health insurance companies. Specifically, Blue Cross alleges that it was improperly billed and has been required to pay over $140,000 for allegedly unnecessary diagnostic tests performed on Loan and Kim and for operations from doctors whom they never visited and whom they never authorized to perform any medical operations on them. In response to Blue Cross's petition in intervention, Unity filed a special appearance contesting personal jurisdiction.
After a hearing, the trial court denied the special appearances of Thu, Valley, and Unity. In this interlocutory appeal, Valley and Unity challenge the trial court's jurisdictional ruling.
II. Standard of Review
Whether Valley and Unity are subject to personal jurisdiction in Texas is a question of law subject to de novo review. See BMC Software Belgium, N.V. v. Marchand, 83 S.W.3d 789, 794 (Tex. 2002). The trial court did not issue any findings of f
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