Helicopteros Nacionales de Colombia, S.A. (Helicol), a Colombian corporation with its principal place of business in Bogota, owned a helicopter that crashed in Peru on January 26, 1976, killing four United States citizens. Respondents are the survivors and representatives of the four decedents.
At the time of the crash, the decedents were employed by Consorcio, the alter ego of a joint venture named Williams-Sedco-Horn (WSH) headquartered in Houston, Texas. Consorcio had been formed to enable the venturers to contract with Petro Peru for construction of the pipeline.
In 1974, Consorcio/WSH needed helicopter services for the project. Helicol's chief executive officer, Francisco Restrepo, flew to Houston and conferred with representatives of the three joint venturers on prices, availability, working conditions, fuel, supplies, and housing. The parties reached an agreement under which Helicol would begin performance before the formal contract was signed in Peru on November 11, 1974. The contract provided that payments would be made to Helicol's account with the Bank of America in New York City and that controversies would be submitted to Peruvian courts.
Between 1970 and 1977, Helicol purchased helicopters, spare parts, and accessories for more than four million dollars from Bell Helicopter Company in Fort Worth, accounting for approximately eighty percent of its fleet. During the same period, Helicol sent prospective pilots to Fort Worth for training and to ferry aircraft to South America. It also sent management and maintenance personnel to Bell's facilities for plant familiarization and technical consultation. Helicol received over five million dollars in payments from Consorcio/WSH drawn on the First City National Bank of Houston into its New York City and Panama City bank accounts.
Helicol maintained no place of business in Texas, was never licensed to do business there, had no agent for service of process in the state, performed no helicopter operations in Texas, and owned no real or personal property there. Respondents filed wrongful-death actions against Helicol, Consorcio/WSH, and Bell Helicopter in the District Court of Harris County, Texas. After Helicol's motion to dismiss for lack of personal jurisdiction was denied, a consolidated jury trial resulted in a verdict of $1,141,200 against Helicol. The Texas Court of Civil Appeals reversed on jurisdictional grounds. The Supreme Court of Texas ultimately upheld jurisdiction on rehearing.
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