Alliance Clothing Ltd. v. District Court

532 P.2d 351, 187 Colo. 400, 1975 Colo. LEXIS 725
Supreme Court of Colorado·Decided February 18, 1975·No. 26575·Published·Cited by 13 cases

Opinions

[402] MR. CHIEF JUSTICE PRINGLE

delivered the opinion of the Court.

This is an original proceeding in which the petitioner, Alliance Clothing Ltd., requests a writ of prohibition to prevent the Denver District Court from subjecting it to in personam jurisdiction pursuant to the provision of the Colorado long-arm statute providing for jurisdiction when a “tortious act” has been committed in this state. Section 13-l-124(l)(b), C.R.S. 1973.

In a complaint filed in the respondent court, Susan Bimkrant alleged that she fell while skiing at Vail, Colorado and suffered severe and permanent injuries because of latent defects in the parka and pants she was wearing. The fabric used for the exterior of these garments is claimed to have an insufficient coefficient of friction to impede or prevent dangerous slides when a skier has fallen. The defendants are manufacturers, distributors and retailers of the plaintiffs ski apparel.

The defendant-petitioner, Alliance Clothing Ltd., is a Hong Kong corporation and purportedly manufactured the pants worn by the plaintiff. Alliance was served with process at its Hong Kong office pursuant to section 13-1-125, C.R.S. 1973. Alliance contends that the exercise of personal jurisdiction in this case violates its due process rights under the Colorado and United States constitutions because traditional notions of fair play and substantial justice are violated. We disagree and therefore discharge our previously issued rule to show cause.

I.

The complaint in this action, besides alleging that Alliance manufactured the pants worn at the time of the fall, alleges that these pants were sold and distributed in the United States by defendants Archer Enterprises Ltd., a Hong Kong corporation, and H. G. Schwarz & Co., a California corporation. The pants were bought by the plaintiff from the defendant Bullrich Corporation, a Colorado corporation doing business as the Christy Sports Shop in Vail, Colorado. The plaintiff alleges in the complaint that Alliance is in the business of design, manufacture and distribution of ski clothing which was placed in the stream of commerce throughout the world, and specifically in the United States and Colorado by all of the defendants.

[403] Alliance contends that Colorado case law construing the long-arm statute requires dismissal of this suit against it. Resolution of this question depends on whether a corporation foreign to the United States (hereinafter called an alien corporation) is subject to the same rules with regard to the exercise of jurisdiction by a Colorado court as is a corporation authorized to do business under the laws of one of the United States other than Colorado (hereinafter called a native corporation).

When examining whether jurisdiction may properly be exercised under section 13-1-124(1)(b), C.R.S. 1973, over alien corporations, we must determine whether subjecting the defendant to the jurisdiction of the Colorado court offends traditional notions of fair play and substantial justice. E.g., International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945). In both Czarnick v. District Court, 175 Colo. 482, 488 P.2d 562, and Vandermee v. District Court, 164 Colo. 117, 433 P.2d 335, we held that a defendant-manufacturer who places his products in interstate commerce can be called into this state to defend actions for damages caused by defects in those products, without violating the manufacturer’s right to due process.

Alliance concedes that negligence in another jurisdiction which proximately results in injury in Colorado is a tortious act within the meaning of the long-arm statute. Indeed, we have so held in Texair Flyers, Inc. v. District Court, 180 Colo. 432, 506 P.2d 367, Czarnick, supra, and Vandermee, supra. Thus, since the plaintiff has alleged negligence in another jurisdiction which resulted in injury in Colorado and also alleged that the defendant placed his product into the stream of commerce, Alliance could clearly be called to defend this action in Colorado if it were a native corporation.

The petitioner contends that Ferrari S.p.A. Sefac v. District Court, 185 Colo. 136, 522 P.2d 105, Granite States Volkswagen, Inc. v. District Court, 177 Colo. 42, 492 P.2d 624, and Safari Outfitters, Inc. v. Superior Court, 167 Colo. 456, 448 P.2d 783, require an opposite conclusion at least with regard to alien corporations. However, in Ferrari we found that a tortious act had not been committed in Colorado and that the defendant Ferrari did not have sufficient contacts with Colorado to constitutionally subject it to personal jurisdiction under the “transaction of any busi[404] ness” portion of our long-arm statute. Section 13-l-124(1)(a), C.R.S. 1973. Similarly, Safari Outfitters was a case under the “transaction of any business” portion of the statute and minimum contacts could not be found. In Granite States Volkswagen the defendant Volkswagen dealer had not availed itself of the channels of interstate commerce. Here, the petitioner has alleged conduct falling under the “tortious act” portion of the long-arm statute, and that the defendant has allegedly availed itself of the channels of commerce. Thus, the cases the petitioner cites are inapposite in determining the jurisdictional question presented.

II.

Since the defendant Alliance could be constitutionally subjected to personal jurisdiction in Colorado if it were a native corporation, we turn to examine the question of whether the result is different in this case because Alliance is an alien corporation.

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Alliance Clothing Ltd. v. District Court, 532 P.2d 351, 187 Colo. 400, 1975 Colo. LEXIS 725 (Colo. 1975).

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Alliance Clothing Ltd. v. District Court
532 P.2d 351 (Supreme Court of Colorado, 1975)