Aaron Ferer & Sons Co. v. Diversified Metals Corp.

564 F.2d 1211
CourtCourt of Appeals for the Eighth Circuit
DecidedNovember 9, 1977
DocketNos. 76-1959 to 76-1963 and 76-1965
StatusPublished
Cited by92 cases

This text of 564 F.2d 1211 (Aaron Ferer & Sons Co. v. Diversified Metals Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aaron Ferer & Sons Co. v. Diversified Metals Corp., 564 F.2d 1211 (8th Cir. 1977).

Opinion

WEBSTER, Circuit Judge.

These consolidated appeals arise out of the same factual setting as that presented in this Court’s recent opinion in Aaron Ferer & Sons Co. v. Atlas Scrap Iron & Metal Co., 558 F.2d 450 (8th Cir. 1977). The same issue is also presented here: whether the District Court1 erred in dismissing appellant Aaron Ferer & Sons Company’s complaints against the appellee corporations for lack of in personam jurisdiction.

In our prior Aaron Ferer opinion we held in a series of consolidated appeals that the corporations over which appellant desired to assert jurisdiction had insufficient contacts with Nebraska, the forum state, to satisfy Due Process requirements. We noted that the-contracts at issue therein between appellant and the appellee corporations were not to be performed in any part in Nebraska; the goods involved in the contracts neither originated in nor were destined for Nebraska; the contracts were not negotiated in Nebraska; they were not executed there; and the appellee corporations employed no salesmen or agents in Nebraska.

With the exception of No. 76-1961, Aaron Ferer & Sons Go. v. Mueller Brass Co., discussed infra, none of the appeals now before us involve any more contacts with Nebraska than did those in our prior Aaron Ferer decision.2 None of the appel[1214]*1214lee corporations has an office, agent or employee in Nebraska, nor has any representative of an appellee corporation ever entered Nebraska for a purpose related to the contracts involved in this lawsuit. The goods that are the subject of these contracts neither originated in nor were destined for Nebraska. The telephone calls and mailings between appellant in Nebraska and appellees in their various states were of the same nature and pattern as were present in Aaron Ferer & Sons Co. v. Atlas Scrap Iron & Metal Co., supra, 558 F.2d at 454. We thus affirm Nos. 76-1959, 76-1960, 76-1962, 76-1968, and 76-1965 on the basis of our prior opinion, in which our legal analysis is set forth in full.

No. 76-1961 Mueller Brass Co.

Mueller Brass and appellants are both traders and processors of various forms of ferrous and nonferrous metals. Mueller Brass is incorporated and has its principal place of business in Michigan. It has never maintained an office in Nebraska, where appellant maintains its principal office; nor have any of Mueller Brass’ employees, salesmen or officers been located in or visited Nebraska in connection with the contracts that are the subject of this lawsuit. The District Court found the contracts between the parties to be part of a course of dealing that extended over a period of five years and involved a volume of business in excess of ten million dollars. The Court also found that only one shipment on a prior contract originated from Ferer’s Omaha warehouse.

The bulk of the parties’ contracts called for an arrangement whereby Ferer, as broker, would locate a supplier who could satisfy Mueller’s needs. The supplier would then ship the material from its plant to Mueller in Port Huron, Michigan. Six purchase contracts and one exchange contract are the subject of the pending litigation. The exchange contract did not involve shipments to or from Nebraska.

Typically, Mueller, as purchaser, would negotiate with Ferer either by telephone or mail. Ferer, as broker/seller would fulfill Mueller’s needs either by arranging for shipment from a supplier located outside Nebraska or by sending the metal from its Omaha plant. Because processed metals were scarce in Nebraska, shipments to Mueller originating in Omaha were few, and were limited to scrap metals.

Mueller was a purchaser rather than a seller in each of its transactions with Aaron Ferer. Some jurisdictions have made a distinction between contacts initiated by a seller and contacts initiated by a buyer from outside the state. In these cases, the courts have held that solicitation by a nonresident purchaser for delivery outside the forum state is a more minimal contact than that of a seller soliciting the right to ship goods into the forum state. This distinction was held to be controlling in Electro-Craft Corp. v. Maxwell Electronics Corp., 417 F.2d 365, 368 (8th Cir. 1969), relying upon Judge Blackmun’s (now Mr. Justice Blackmun) opinion in Aftanase v. Economy Baler Company, 343 F.2d 187 (8th Cir. 1965). See McQuay, Inc. v. Samuel Schlosberg, Inc., 321 F.Supp. 902, 907 (D.Minn.1971);3 Guardian Packaging Corporation v. Kapak Industries, Inc., 316 F.Supp. 952, 954-55 (D.Minn.1970); Oswalt Industries, Inc. v. Gilmore, 297 F.Supp. 307, 312-13 (D.Kan. 1969); Rath Packing Co. v. Intercontinental [1215]*1215Meat Traders, Inc., 181 N.W.2d 184, 188 (Iowa 1970); Marshall Egg Transport Company v. Bender Goodman Company, Inc., 275 Minn. 534, 537-38, 148 N.W.2d 161, 164 (1967); Fourth Northwestern National Bank of Minneapolis v. Hilson Industries, Inc., 264 Minn. 110, 117, 117 N.W.2d 732, 736 (1962).

While this distinction may be significant in other contexts, we think the ultimate test is whether the defendant, either as seller or buyer, has performed “some act by which [it has] purposefully [availed] itself of the privilege of conducting activities within the forum state thus invoking the benefits and protections of its laws.” Hanson v. Denckla, 357 U.S. 235, 253, 78 S.Ct. 1228, 1240, 2 L.Ed.2d 1283 (1958). See Vencedor Manufacturing Co., Inc. v. Gougler Industries, Inc., 557 F.2d 886 (1st Cir. 1977); Whittaker Corporation v. United Aircraft Corporation, 482 F.2d 1079 (1st Cir. 1973).

While the facts adduced in a Rule 12(b)(2) motion to dismiss for lack of personal jurisdiction must be viewed in the light most favorable to the party opposing the motion, there must nonetheless be some evidence upon which a prima facie showing of jurisdiction may be found to exist, thereby casting the burden upon the moving party to demonstrate a lack of personal jurisdiction. “Once jurisdiction has been controverted or denied, [the plaintiff has] the burden of proving such facts.” Block Industries v. D. H. J. Industries, Inc., 495 F.2d 256, 259 (8th Cir. 1974), citing McNutt v. General Motors Acceptance Corp., 298 U.S. 178, 56 S.Ct. 780, 80 L.Ed. 1135 (1936); see 4 C. Wright & A.

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564 F.2d 1211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aaron-ferer-sons-co-v-diversified-metals-corp-ca8-1977.