Tubbs v. Southwestern Bell Telephone Compan

846 F. Supp. 551 (S.D. Tex. 1994)

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Nature of the Case

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Facts

P was injured when he came in contact with one of the D's cables. D is a telecommunication public utility that is incorporated in Missouri and operates in Texas, Arkansas, Kansas, Missouri, and Oklahoma. In May 1993, about 56% of D's total operating revenue was generated in Texas, and about 57% of D's customer bills were bills of Texas customers. Moreover, wages paid to Texas employees comprised over 50% of the total wages paid by D. On the other hand, Missouri operations generated only 17% of customer bills, 17% of the total operating revenue, and 27% of the total wages paid by D. About 59% of D's equipment and cable and 57% of its total assets were located in Texas. Three of D's area purchasing managers resided in Texas, the other two in Missouri and one in Kansas. These purchasing agents were responsible for the purchase of equipment and cable of the type that allegedly injured P. They were authorized to issue purchase orders for amounts up to $50,000 (which included the majority of D's purchases) under the terms of supply contracts which were negotiated in Missouri. The equipment supplied for use in Texas was not necessarily manufactured there but was delivered to Texas directly from the manufacturers. About 57% of D's equipment purchases were for Texas. Missouri contained about 15% of D's equipment and cable and about 17% of D's total assets. Contracting managers in Missouri were responsible for negotiating contracts with company-wide suppliers and also promulgated company-wide practices and procedures for purchasing. D removed to federal court, and P filed a motion to remand back to state court claiming that Texas was D’s principal place of business.