Attaway v. Omega

903 N.E.2d 73, 2009 Ind. App. LEXIS 515, 2009 WL 690296
CourtIndiana Court of Appeals
DecidedMarch 13, 2009
Docket11A01-0712-CV-608
StatusPublished
Cited by11 cases

This text of 903 N.E.2d 73 (Attaway v. Omega) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Attaway v. Omega, 903 N.E.2d 73, 2009 Ind. App. LEXIS 515, 2009 WL 690296 (Ind. Ct. App. 2009).

Opinions

OPINION

CRONE, Judge.

Case Summary

Richard and Marlene Attaway ("the Att-aways") bring this interlocutory appeal of the trial court's denial of their motion to dismiss. We affirm and remand.

Issues

I. Did the trial court err by denying the Attaways' motion to dismiss?

II. Is venue in Clay County proper?

III. Do the eBay and PayPal user agreements prohibit the parties from litigating their dispute?

Facts and Procedural History

In January 2006, Llexeyiss Omega and D. Dale York, both residents of Indiana, jointly listed a Porsche for sale on eBay, a popular auction website. The auction was open to any registered eBay user in the United States. The listing stated that the vehicle was located in Indiana and that the "winning" bidder would be responsible for arranging and paying for delivery of the vehicle. The Attaways, residents of Idaho, entered a bid of $5,000 plus delivery costs. After being notified that they had "won" the auction, the Attaways submitted payment to Omega and York through PayPal (an online payment service owned by eBay), which charged the amount to the Attaways' MasterCard account. On or about February 5, 2006, the Attaways arranged for CarHop USA, a Washington-based auto transporter, to pick up the Porsche in Indiana and deliver it to their Idaho residence.

After taking delivery of the Porsche, the Attaways filed a claim with PayPal, asking for a refund of its payment to Omega and York because the Porsche was "significantly not-as-described" in its eBay listing. See Plaintiff's Exh. A.1 On March 8, 2006, PayPal informed the Attaways via email that their claim was denied and encouraged them to "work directly with the buyer to find a resolution." Id. It appears that, soon thereafter, the Attaways convinced MasterCard to rescind the payment that was made to Omega and York.2

[76]*76On December 27, 2006, Omega and York filed suit against the Attaways in small claims court, demanding $5,900 in damages. On February 1, 2007, the Attaways filed an answer and a motion to dismiss with prejudice, citing, among other things, lack of personal jurisdiction. On August 21, 2007, the trial court denied the motion. On September 24, 2007, the Attaways filed a motion to certify order for appeal. On October 3, the Attaways filed a motion to stay proceedings pending appeal, which the trial court granted. This interlocutory appeal ensued.

Discussion and Decision

I. Personal Jurisdiction

The Attaways claim that the trial court erred in denying their motion to dismiss for lack of personal jurisdiction. When a person attacks the court's jurisdiction over him, he bears the burden of proof upon that issue by a preponderance of the evidence, unless the lack of jurisdiction is apparent upon the face of the complaint. Lee v. Goshen Rubber Co., 635 N.E.2d 214, 215 (Ind.Ct.App.1994), trons. demied. When reviewing a motion to dismiss for lack of personal jurisdiction, we apply a de novo standard of review. Dexter Axle Co. v. Baan USA, Inc., 833 N.E.2d 43, 48 (Ind.Ct.App.2005)." However, personal jurisdiction turns on facts, typically related to the defendant's contacts with the forum, and findings of fact by the trial court are reviewed for clear error. LinkAmerica Corp. v. Albert, 857 N.E.2d 961, 965 (Ind.2006).

Until fairly recently, determining personal jurisdiction in Indiana required an analysis under both Indiana Trial Rule 4.4 (Indiana's long arm provision) and the federal due process clause. In 2006, however, our supreme court clarified that a 2003 amendment to Indiana Trial Rule 44(A) "was intended to, and does, reduce analysis of personal jurisdiction to the issue of whether the exercise of personal jurisdiction is consistent with the Federal Due Process Clause." Id. at 967.

This federal due process analysis is well-settled. In International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945), the U.S. Supreme Court established that a nonresident defendant must have "certain minimum contacts with [the forum state} such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice." Id. at 316, 66 S.Ct. 154 (citation and quotation marks omitted). The Court later clarified this test to mean that the nonresident defendant must engage in "some act by which [he] purposefully avails [himself] of the privilege of conducting activities within the forum State, thus involk-ing the benefits and protections of its laws." Hanson v. Denckla, 357 U.S. 235, 253, 78 S.Ct. 1228, 2 L.Ed.2d 1283 (1958).

There are two types of personal jurisdiction, general and specific. If the defendant's contacts with the state are so "continuous and systematic" that the defendant should reasonably anticipate being haled into the courts of that state for any matter, then he is subject to general jurisdiction, even in causes unrelated to his contacts with the forum state. LinkAmerica, 857 N.E.2d at 967; Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 415 n. 9, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984). The parties agree, as do we, that the Atterways are not subject to general jurisdiction in Indiana.

Specific jurisdiction requires that the defendant has purposefully availed himself of the privilege of conducting activities within the forum state and that his conduct and connection with that state are such that he should reasonably anticipate being haled into court there. Burger King Corp. v. Rudzewicz 471 U.S. 462, 474-75, [77]*77105 S.Ct. 2174, 85 L.Ed.2d 528 (1985). A single contact with the forum state may be sufficient to establish specific jurisdiction over a defendant if it creates a "substantial connection" with the forum state and the suit is related to that connection. McGee v. Int'l Life Ins. Co., 355 U.S. 220, 223, 78 S.Ct. 199, 2 L.Ed.2d 223 (1957). A defendant cannot be haled into a jurisdiction "solely as a result of random, fortuitous, or attenuated contacts or of the unilateral activity of another party or a third person." Burger King Corp., 471 U.S. at 475, 105 S.Ct. 2174.

If the defsndant's contacts with the forum state are sufficient to support a finding of general or specific jurisdiction, due process requires that the assertion of personal jurisdiction would comport with "fair play and substantial justice." Id. at 476, 105 S.Ct. 2174.

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Attaway v. Omega
903 N.E.2d 73 (Indiana Court of Appeals, 2009)

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903 N.E.2d 73, 2009 Ind. App. LEXIS 515, 2009 WL 690296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attaway-v-omega-indctapp-2009.