08-0669 KELLY v. GENERAL INTERIOR CONSTR., INC. 08-0669 Dan Kelly and Laura Hofstatter v. General Interior Construction Inc. from Harris County and the 14th District Court of Appeals, Houston For petitioners: David C. Holmes, Houston For respondent: Ross A. Sears II, Houston In this jurisdictional challenge the principal issues are (1) whether Texas contacts to establish personal jurisdiction should be limited to pleadings that did not allege a disputed contract was a contact for a fraud claim or for Texas Trust Fund Act violations by the officers individually and (2) whether asserting jurisdiction over the corporate officers complies with federal due process and the Texas long-arm statute. In this case General Interior Construction, a Texas company, sued Kelly and Hofstatter over alleged payments due from Kelly and Hofstatter’s general-contracting business incorporated in Arizona. Their company agreed with another Arizona firm for improvements to a Texas hotel the other firm owned. GIC alleged breach of contract, fraud and misappropriation of trust money Kelly and Hofstatter’s firm held for paying subcontractors. The trial court found specific jurisdiction existed to require Kelly and Hofstatter to defend in Texas against all claims, but the court of appeals reversed on the contract-breach claim, based on Kelly and Hofstatter’s signing the contract as corporate officers. The first argument begins at 9 a.m. in the courtroom in Austin. Each side will have 20 minutes for argument. This advisory serves only as an abbreviated guide to oral argument. Summaries are prepared by the Court’s staff attorney for public information and reflect his judgment alone on facts and legal issues and in no way represent the Court’s opinion about case merits. Texas Supreme Court advisory Contact: Osler McCarthy, Staff Attorney for Public Information (512) 463.1441 or email: osler.mccarthy@courts.state.tx.us (Javascript is required to view Mediasite content)