American Baseball Cap, Inc. v. Duzinski

359 So. 2d 483
CourtDistrict Court of Appeal of Florida
DecidedMay 9, 1978
DocketHH-148
StatusPublished
Cited by8 cases

This text of 359 So. 2d 483 (American Baseball Cap, Inc. v. Duzinski) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Baseball Cap, Inc. v. Duzinski, 359 So. 2d 483 (Fla. Ct. App. 1978).

Opinion

359 So.2d 483 (1978)

AMERICAN BASEBALL CAP, INC., Appellant,
v.
Andrew Thomas DUZINSKI, Henry T. Duzinski and Irene Duzinski, Appellees.

No. HH-148.

District Court of Appeal of Florida, First District.

May 9, 1978.
Rehearing Denied June 14, 1978.

*485 Alan Thompson of Sale, Bryant, Daniel & Thompson, Panama City, for appellant.

W.A. Swann, Jr., Pensacola, George A. Cox, for appellees.

BOYER, Acting Chief Judge.

By this appeal, American Baseball Cap, Inc. (hereinafter defendant) appeals from an order denying its motion to dismiss.

This is the second time this case has been in this court. In a prior appeal from an order denying defendant's motion to dismiss, this court held that plaintiffs failed to meet their burden of proof of supporting the allegations of their complaint and showing facts sufficient to sustain the propriety of substituted service of process but the plaintiffs were afforded another opportunity to attempt service. (American Baseball Cap, Inc. v. Duzinski, 308 So.2d 639 (Fla. 1st DCA 1975))

The Duzinskis (hereinafter plaintiffs) brought suit against defendant alleging that Andrew Duzinski was injured in 1969 while wearing a baseball helmet manufactured by defendant. The jurisdictional allegations in the complaint were that the defendant "sells, consigns, or leases tangible personal property through brokers, jobbers, wholesalers, or distributors to persons, firms, and corporations in this state . ."; that although defendant is not licensed to do business in the state of Florida, it "has been doing business in this state"; and that defendant "manufactured the said helmet and sold the same either directly or through jobbers, to the defendant, Northwest Florida Office of School Supply, Inc., of Fort Walton Beach, Florida, who sold the said helmet to the City of Fort Walton Beach, Florida" who furnished it to Andrew Thomas Duzinski. Plaintiffs attempted to obtain substituted service of process on defendant under F.S. 48.161, F.S. 48.181 and F.S. 48.182. Defendant filed a motion to dismiss for lack of jurisdiction over the person, insufficiency of process, and insufficiency of service of process, stating that it was a foreign corporation not doing business in Florida at the time the injury occurred. It is the denial of that motion which is the subject of this interlocutory appeal.

Defendant is a Pennsylvania corporation with a home office in Media, Pennsylvania. *486 At the time of the alleged injury and prior thereto, defendant did not own any property in Florida; did not maintain any office, telephone listing, bank account or business records in Florida; and did not have any salesmen, employees, representatives, dealers, franchises, jobbers, brokers nor agents of any nature in this state. At the time of Andrew Duzinski's injury, 90% of defendant's business consisted of sales of its helmets to major sporting goods companies, all of whom were located outside Florida. The remaining 10% of defendant's business was done pursuant to purchase orders or telephone calls. Defendant contends those orders were shipped F.O.B. directly to the purchaser or as requested by the purchaser. Several of the purchase orders in the record provide that shipments be F.O.B. shipping point. It is the 10% of defendant's business which is done pursuant to purchase orders that we will be concerned with in this appeal.

Defendant's president visited Florida several times prior to 1969 and observed major league baseball spring training games. Defendant contends those visits were family vacations and not business trips. However, defendant's president was unable to produce any proof that it was he and not the corporation who paid his expenses for the trips.

After this court's decision in the prior appeal, plaintiffs made additional discovery at defendant's home office in Media, Pennsylvania and found: (1) direct sales to retail sporting goods stores in Florida; (2) direct sales to major league baseball teams in Florida; and (3) direct sales to major sporting goods manufacturers in which shipment was made directly from defendant to retail sporting goods stores in Florida. The records examined represented only the portion of the alphabet from A to G: Those records revealed that defendant shipped in excess of 1,250 helmets to 88 different buyers in Florida who were located in 30 different Florida cities.

F.S. 48.161 relates only to procedure and F.S. 48.182 was not enacted until after the occurrence of the accident giving rise to this controversy. Therefore, the only statute with which we are concerned here is F.S. 48.181, Florida Statutes 1969, which provides:

"48.181 Service on nonresident engaging in business in state.
"(1) The acceptance by any person or persons, individually, or associated together as a copartnership or any other form or type of association, who are residents of any other state or country, and all foreign corporations, and any person who is a resident of the state and who subsequently becomes a nonresident of the state or conceals his whereabouts, of the privilege extended by law to nonresidents and others to operate, conduct, engage in, or carry on a business or business venture in the state, or to have an office or agency in the state, constitutes an appointment by the persons and foreign corporations of the secretary of state of the state as their agent on whom all process in any action of proceeding against them, or any of them, arising out of any transaction or operation connected with or incidental to the business or business venture may be served. The acceptance of the privilege is signification of the agreement of the persons and foreign corporations that the process against them which is so served is of the same validity as if served personally on the persons or foreign corporations.
"(2) If a foreign corporation has a resident agent or officer in the state, process shall be served on the resident agent or officer.
"(3) Any person, firm or corporation which sells, consigns, or leases by any means whatsoever tangible or intangible personal property, through brokers, jobbers, wholesalers or distributors to any person, firm or corporation in this state shall be conclusively presumed to be operating, conducting, engaging in or carrying on a business venture in this state."

We will consider the three subsections of F.S. 48.181 in reverse order:

Subsection (3) becomes applicable only when the nonresident person, firm, or *487 corporation sells, consigns, or leases tangible or intangible personal property through brokers, jobbers, wholesalers or distributors. A single sale is sufficient. (Dinsmore v. Martin Blumenthal Associates, Inc., 314 So.2d 561 (Fla. 1975)) However, in order to invoke subsection (3) for the acquisition of jurisdiction over a nonresident defendant it is necessary that the party attempting to effect service must demonstrate either (1) that the nonresident defendant has some degree of control over the personal property referred to in said subsection (3) of the statute in the hands of the brokers, jobbers, wholesalers or distributors selling or distributing the property in this state, or (2) that the nonresident defendant has some degree of control over the brokers, jobbers, wholesalers or distributors selling or distributing the said personal property in this state. (Fawcett Publications, Inc. v. Rand, 144 So.2d 512 (Fla. 3rd DCA 1962); Dinsmore v. Martin Blumenthal Associates, Inc., supra)

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Bluebook (online)
359 So. 2d 483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-baseball-cap-inc-v-duzinski-fladistctapp-1978.