Bates v. Jarrett

521 S.E.2d 735, 135 N.C. App. 594, 1999 N.C. App. LEXIS 1174, 1999 WL 1038420
CourtCourt of Appeals of North Carolina
DecidedNovember 16, 1999
DocketNo. COA98-1338
StatusPublished
Cited by4 cases

This text of 521 S.E.2d 735 (Bates v. Jarrett) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bates v. Jarrett, 521 S.E.2d 735, 135 N.C. App. 594, 1999 N.C. App. LEXIS 1174, 1999 WL 1038420 (N.C. Ct. App. 1999).

Opinion

WALKER, Judge.

The plaintiff, a resident of Cumberland County, North Carolina, filed an equitable distribution claim against defendant Michael Bates, a citizen of Virginia, and claims against defendant Debbie Jarrett, a citizen of this State. Included was a claim to set aside the conveyance of a 1992 Subaru Loyale by defendant Bates to defendant Debbie Jarrett and to recover the insurance proceeds received by Jarrett after the Subaru was wrecked. After defendant Debbie Jarrett filed a motion to dismiss, an answer, and counterclaims, plaintiff filed a [596]*596motion to add defendant Michael Jarrett as a necessary party. Plaintiffs motion was granted. Defendants Jarrett then filed a motion to dismiss, an answer, and counterclaims.

The trial court held a hearing on the motion of defendants Jarrett to dismiss the equitable distribution claim against defendant Bates for lack of jurisdiction. At the hearing, the trial court reviewed the pleadings and considered plaintiffs affidavit with attachments, as well as the arguments of counsel. After finding there was no personal jurisdiction over defendant Bates, the trial court dismissed the plaintiffs claim for equitable distribution against defendant Bates as well as the remaining claims against defendants Jarrett.

The plaintiff first contends that the trial court erred in allowing defendants Jarrett to challenge the court’s subject matter jurisdiction over defendant Bates. The record indicates that the Subaru was wrecked shortly after title was transferred by defendant Bates to defendant Michael Jarrett. The insurance proceeds were paid to defendants Jarrett and deposited in their account in this State. Since plaintiff has asserted claims against defendants Jarrett, we conclude they have standing as real parties in interest to challenge our courts’ jurisdiction over defendant Bates.

Plaintiff next assigns as error the dismissal of her claim for equitable distribution against defendant Bates for lack of jurisdiction. Exercise of jurisdiction in an equitable distribution action must meet the minimum contacts standard of International Shoe Co. v. Washington, 326 U.S. 310, 316, 90 L. Ed. 95, 102 (1945). Carroll v. Carroll, 88 N.C. App. 453, 455, 363 S.E.2d 872, 874 (1988). The resolution of whether the trial court acquired in personam jurisdiction over defendant involves a two-fold determination. Godwin v. Walls, 118 N.C. App. 341, 345, 455 S.E.2d 473, 478 (1995). First, our statute must permit the exercise of jurisdiction, and second, such exercise must comport with due process of law under the Fourteenth Amendment to the U.S. Constitution. Id.

The question on appeal is whether the second prong of this test was met. The requirements of due process are well settled:

[D]ue process requires only that in order to subject a defendant to a judgment in personam, if he be not present within the territory of the forum, he have certain minimum contacts with it such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’

[597]*597International Shoe Co., 326 U.S. at 316, 90 L. Ed. at 102. To effectuate minimum contacts, a defendant must have acted to purposefully avail itself of the privileges of conducting activities within this State, thus invoking the benefits and protection of our laws. International Shoe Co., 326 U.S. at 319, 90 L. Ed. at 103. The Supreme Court later clarified the standard: “Rather, it is that the defendant’s conduct and connection with the forum State are such that he should reasonably anticipate being haled into court there.” World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297, 62 L. Ed. 2d 490, 501 (1980). As the United States Supreme Court has explained:

[T]he ‘purposeful availment’ requirement ensures that a defendant will not 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.’ Jurisdiction is proper, however, where the contacts proximately result from actions by the defendant himself that create a ‘substantial connection’ with the forum State.

Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475, 85 L. Ed. 2d 528, 542 (1985).

The trial court found that there were insufficient minimum contacts between defendant Bates and this State whereby our courts could exercise personal jurisdiction over him in this matter. The determination of whether jurisdiction is statutorily and constitutionally permissible due to contact with the forum is a question of fact for the trial court. Chadbourn, Inc. v. Katz, 285 N.C. 700, 208 S.E.2d 676 (1974). Whether minimum contacts are present is determined not by using a mechanical formula or rule of thumb but by ascertaining what is fair and reasonable under the circumstances. Better Business Forms, Inc. v. Davis, 120 N.C. App. 498, 462 S.E.2d 832 (1995). The standard of review of an order determining personal jurisdiction is whether the findings of fact by the trial court are supported by competent evidence in the record; if so, this Court must affirm the order of the trial court. Id.

In its order of dismissal, the trial court’s findings included the following:

1. The Court has carefully examined the filed documents in Case No. 97 CvD 5938 and also 97 CvM 785; In Case No. 97 CvD 5938, the Defendant was personally served within the State of North Carolina in reference to the TRO and for that action he was per[598]*598sonally served in the State of North Carolina which then had personal service over him the TRO.
6. In the pro se domestic violence action filed in 97 CvD 5938, Cumberland County, North Carolina, the Plaintiff points out that there was a Protective Order most likely in the State of Virginia which expired on June 6, 1997; the Defendant Bates did not voluntarily return to the State of North Carolina.
7. In the Small Claims action 97 CvM 785 in Cumberland County, North Carolina, the Defendant Bates was named as a Defendant and was not served and this action was dismissed.
8. All that is left to argue in reference to minimum contacts within the State of North Carolina is that Defendant Bates permitted the 1992 [Subaru] Loyale to be brought into the State of North Carolina by the Plaintiff.
9. Pursuant to the United States Supreme Court case International Shoe, the Court can proceed if it is reasonable and fair to proceed against a Defendant, in this instance it is not reasonable and fair to proceed in this matter and the Plaintiffs claim for Equitable Distribution is dismissed pursuant to a lack of personal jurisdiction over the Defendant Bates, there is not sufficient minimum contacts with the state.

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Bluebook (online)
521 S.E.2d 735, 135 N.C. App. 594, 1999 N.C. App. LEXIS 1174, 1999 WL 1038420, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bates-v-jarrett-ncctapp-1999.