Cornerstone Healthcare Grp. Holding v. Nautic Mgmt.

Defendants are three nonresident private-equity fund limited partnerships and their general partner. The funds invested in a newly created Texas subsidiary that purchased a chain of Texas hospitals from a Texas company. Cornerstone, a Texas company allegedly in the market to purchase the hospitals, filed suit alleging that this conduct was tortious and subjects defendants to Texas’s jurisdiction with respect to claims arising out of that conduct. The court held that the trial court has personal jurisdiction over the Funds and the General Partner where the claims arise out of defendants' Texas contacts and where exercising personal jurisdiction over defendants comports with traditional notions of fair play and substantial justice. Accordingly, the court affirmed the judgment. View "Cornerstone Healthcare Grp. Holding v. Nautic Mgmt." on Justia Law