Coblentz GMC/Freightliner v. General Motors Corp.

724 F. Supp. 1364, 1989 U.S. Dist. LEXIS 13621, 1989 WL 138751
CourtDistrict Court, M.D. Alabama
DecidedJune 9, 1989
DocketCiv. A. No. 87-T-1434-N
StatusPublished
Cited by23 cases

This text of 724 F. Supp. 1364 (Coblentz GMC/Freightliner v. General Motors Corp.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coblentz GMC/Freightliner v. General Motors Corp., 724 F. Supp. 1364, 1989 U.S. Dist. LEXIS 13621, 1989 WL 138751 (M.D. Ala. 1989).

Opinion

724 F.Supp. 1364 (1989)

COBLENTZ GMC/FREIGHTLINER, INC., Plaintiff,
v.
GENERAL MOTORS CORPORATION, et al., Defendants.

Civ. A. No. 87-T-1434-N.

United States District Court, M.D. Alabama, N.D.

June 9, 1989.

*1365 *1366 Robert E. Sasser, Dorothy W. Littleton and John Alley, Webb, Crumpton, McGregor, Sasser, Davis & Alley, Montgomery, Ala., for plaintiff.

George H. Wakefield, Montgomery, Ala., for nonparty Henderson Truck on 2/24/89 M/Quash, etc.

M.R. Nachman, Jr., Balch & Bingham, Montgomery, Ala., for Volvo GM Heavy Truck Corp., Aktiebolaget Volvo and Volvo Lastvagnar AB.

Charles L. Robinson, Johnston, Barton, Proctor, Swedlaw & Naff, Birmingham, Ala., Burton L. Ansell, Legal Staff, General Motors Corp., Detroit, Mich., and Daniel L. Goldberg, Andrea Maislen, John R. Snyder and William Berkowitz, Bingham, Dana & Gould, Boston, Mass., for Gen. Motors Corp. and GMC Truck Operation, etc.

James W. Gewin, Bradley, Arant, Rose & White, Birmingham, Ala., for Volvo White Truck Corp.

ORDER

MYRON H. THOMPSON, District Judge.

Plaintiff Coblentz GMC/Freightliner, Inc. has brought this lawsuit against a number of defendants, including General Motors Corporation (GMC) and two Swedish corporations, charging that the termination of its dealership for GMC heavy trucks violated both federal and state law. This is one of many lawsuits across the nation brought by heavy truck dealers in the wake of a recent joint venture between GMC and several related Volvo companies for the production and sale of heavy trucks.[1] This cause is now before the court on the recommendation of the United *1367 States magistrate that motions to quash service of process and to dismiss for lack of personal jurisdiction filed by the two Swedish defendants, Aktiebolaget Volvo and Volvo Lastvagnar AB of Sweden, should be granted. Coblentz has filed objections to this recommendation and the court has received additional evidence bearing on the motions. For the reasons that follow, the court concludes that the magistrate's recommendation should not be accepted and that the Swedish defendants' motions should be denied.

I.

In 1985, Coblentz entered into a dealership with GMC for the sale of heavy trucks.[2] A year later, in 1986, GMC and several related Volvo companies formed a new joint venture company for the production and sale of these trucks. As part of the agreement to create this joint venture, both GMC and the Volvo company that had previously engaged in the production of heavy trucks in the American market were to terminate all of their existing heavy truck dealerships in the United States. GMC and the Volvo companies also agreed that the new company would then select its own dealers, mainly though not exclusively from the pool of former GMC and Volvo heavy truck dealers. The new company, however, selected fewer than the number of dealers in the pool, with the result that some former dealers did not receive new dealerships. Apparently anticipating this at the time they entered into the agreement with GMC, the Volvo companies established a fund to finance litigation resulting from the dealership terminations. One of the dealerships which was terminated by GMC and which did not receive a new dealership was Coblentz's.

Coblentz has brought this lawsuit in an Alabama federal court against the joint venture company[3] and its creators — that is, GMC and the Volvo Companies — challenging that termination.[4] Coblentz charges that two of the Volvo companies, the Swedish defendants, intentionally interfered with its business relations by inducing GMC to sever its dealership in Montgomery, Alabama. In so doing, according to Coblentz, the Swedish defendants damaged Coblentz's relationship both with GMC and with its Alabama customers.[5] Subject matter jurisdiction as to the Swedish defendants is based on diversity of citizenship. 28 U.S.C.A. § 1332.[6]

As stated, the Swedish defendants have moved to dismiss, asserting improper service of process and lack of personal jurisdiction. The magistrate issued his recommendation determining that this court *1368 lacked personal jurisdiction over the Swedish defendants and, given this conclusion, that he need not reach the service of process issue.

II.

When a nonresident defendant in a diversity case challenges personal jurisdiction, as the Swedish defendants do here, the plaintiff has the burdens of establishing that personal jurisdiction over the defendant comports with the forum state's long-arm provision and with the requirements of the due process clause of the fourteenth amendment. Williams Electric Co. v. Honeywell, Inc., 854 F.2d 389, 391 (11th Cir.1988). Since Alabama's long-arm provision, Ala.R.Civ.P. 4.2(a)(2), authorizes the assertion of personal jurisdiction to the limits of federal due process, these two burdens collapse into the one issue of whether personal jurisdiction over the defendant meets the requirements of due process. Morris v. SSE, Inc., 843 F.2d 489, 492 (11th Cir.1988); Brock v. Hutto, 617 F.Supp. 623, 629 (M.D.Ala.1985).

Due process requires, first, that the defendant have "certain minimum contacts" with the forum state and, second, that the exercise of jurisdiction over the defendant does not offend "traditional notions of fair play and substantial justice." International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945). Both conditions must be satisfied to establish personal jurisdiction over a defendant.

A.

The minimum contacts prong of the International Shoe test puts a defendant on notice that it should reasonably anticipate being sued in a state as a result of these contacts. World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297, 100 S.Ct. 559, 567, 62 L.Ed.2d 490 (1980). Because a defendant might reasonably anticipate suit in a specific state for a variety of reasons, the minimum contacts analysis is more easily stated than applied.

The magistrate and the Swedish defendants correctly recognize that "foreseeability" of an effect in the forum state without more, such as evidence that the defendant knowingly directed its actions toward that state, is not sufficient to establish minimum contacts under a constitutional due process analysis. In World-Wide Volkswagen, plaintiffs purchased an automobile from a retail dealer in New York and later drove to Oklahoma, where they were involved in an accident. They brought a products liability action in Oklahoma against several defendants, including the New York dealer and a New York regional distributor. To the plaintiffs' contention that the New York defendants could have foreseen an injury of the sort they suffered in Oklahoma because of the tendency of individuals to drive automobiles into other states, the Supreme Court responded that "the foreseeability that is critical to due process analysis is not the mere likelihood that a product will find its way into the forum State." Id. The unilateral activity of persons who claim some relationship with the nonresident defendant, the Court continued, cannot alone satisfy the minimum contacts requirement. Id.

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Bluebook (online)
724 F. Supp. 1364, 1989 U.S. Dist. LEXIS 13621, 1989 WL 138751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coblentz-gmcfreightliner-v-general-motors-corp-almd-1989.