Colony Press, Inc. v. Fleeman

308 N.E.2d 78, 17 Ill. App. 3d 14, 14 U.C.C. Rep. Serv. (West) 669, 1974 Ill. App. LEXIS 2940
CourtAppellate Court of Illinois
DecidedJanuary 4, 1974
Docket58473
StatusPublished
Cited by64 cases

This text of 308 N.E.2d 78 (Colony Press, Inc. v. Fleeman) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colony Press, Inc. v. Fleeman, 308 N.E.2d 78, 17 Ill. App. 3d 14, 14 U.C.C. Rep. Serv. (West) 669, 1974 Ill. App. LEXIS 2940 (Ill. Ct. App. 1974).

Opinion

Mr. JUSTICE LORENZ

delivered the opinion of the court:

Defendant, an Ohio company doing business in Ohio, ordered and received from plaintiff, an Illinois corporation, printed advertisements to be used as inserts in an Ohio newspaper. When plaintiff filed suit in Illinois to recover payment for these newspaper inserts, defendant filed a special appearance and motion to quash service and dismiss the action alleging that the court had no jurisdiction over its person. The trial judge found that the court had no jurisdiction over the person of the defendant and quashed the service of summons. Plaintiff appealed this order raising the sole issue of whether this one transaction was sufficient to confer on the trial court in personam jurisdiction over defendant.

The pleadings show that defendant, a resident and domicilliary of the State of Ohio, is engaged in the home construction business in and about Canton, Ohio. All customers of defendant are located within Ohio and no sales are made by him outside of Ohio. On August 23, 1971 in response to plaintiffs advertisements, defendant placed a telephone call from Canton, Ohio to plaintiff, an Illinois corporation engaged in the printing business in Lincolnwood, Illinois, inquiring into the printing of advertisements for defendant to appear in a local Ohio newspaper as a supplementary section. The conversation concluded with defendant ordering 90,900 newspaper inserts at a price of $25 per thousand to be shipped f.o.b. Chicago. 1 A sample copy was prepared by plaintiff and mailed to defendant. After making corrections thereon, defendant returned the corrected copy to plaintiff by mail and ordered the printing to be done. The printing was then done in Lincolnwood, Illinois. On September 3, 1971, plaintiff, under the terms of the agreement, shipped the order f.o.b. Chicago'to Canton, Ohio by placing the goods in the hands of an interstate carrier. At defendant’s direction the goods were sent directly to the Ohio newspaper in which they were to appear. The goods were neither paid for nor returned and plaintiff brought suit. Service óf process was madé on defendant in Ohio pursuant to section 16 of the Illinois Civil Practice Act (Ill. Rev. Stat. 1971, ch. 110, par. 16).

Plaintiff contends that the trial court acquired jurisdiction over defendant’s person under the provisions of section 17 of the Illinois Civil Practice Act, commonly referred to as the “long arm” statute (Ill. Rev. Stat. 1971, ch; 110, par. 17) which provides, in pertinent part, that a non-Illinois resident submits himself to the jurisdiction of the Illinois courts by “the transaction of any business within this State.” (Ill. Rev. Stat. 1971, ch. 110, par. 17(1) (a).) The question presented is whether defendant’s placement of a single interstate telephone order, his return of a corrected copy of that order and the acceptance of that order shipped f.o.b. Chicago, constituted the “transaction of any business” within the meaning of the “long arm” statute, thereby conferring jurisdiction on the trial court.

We believe our recent decision in Cook Associates, Inc. v. Colonial Broach & Machine Co., 14 Ill.App.3d 965, 304 N.E.2d 27, to be dispositive of the issue presented here. In that case plaintiff, an Illinois employment agency had sent a “flyer” regarding available job applicants to defendant, a Delaware corporation doing business in Michigan. Defendant telephoned plaintiff requesting that plaintiff divulge the name of an applicant whose partial identification had been gleaned from the “Flyer.” Defendant also requested plaintiff to send a resume of that applicant and notify him to contact defendant for an interview. The conversation ended with defendant agreeing to pay plaintiff’s fee if the applicant was subsequently hiréd. When the applicant was in fact hired and plaintiff’s bill refused, plaintiff filed suit in IHinois. Defendant filed a special appearance and sought to quash the service of summons. The trial judge denied the motion and a jury trial on the merits of the action took place and money judgment was entered against the defendant. On appeal to this court, defendant again raised the jurisdictional issue. We held that defendant’s single telephone caU initiating this business transaction with plaintiff constituted a sufficient minimum contact with this state, so as to confer jurisdiction on the trial court. We observed that:

“[Defendant knew or should have known that it had entered into a contract with an Illinois agency, that the agency would perform its services from its office in Illinois, that the fee, if due would be paid to plaintiff in Illinois, and if the fee were not paid as promised, defendant might be liable to suit in the Illinois courts.”

For these reasons we held that the maintenance of the suit in this state would not offend traditional notions of fair play and substantial justice. International Shoe Co. v. Washington, 326 U.S. 310, 90 L.Ed. 95, 66 S.Ct. 154; Kolman v. National Racing Affiliates, Inc., 64 Ill.App.2d 61, 212 N.E.2d 313.

In the instant case, defendant should have known that he might be liable to suit in Illinois if the bill were not paid. As in Cook, defendant initiated the business transaction, after plaintiffs mere solicitation, by telephoning plaintiff in Illinois. Defendant, offeror, requested the printing of advertisements; plaintiff, offeree, accepted, and a price for these services was agreed upon. In addition, plaintiff was required to mail defendant a sample printed copy prior to the setting of the press type so that defendant could make any necessary corrections before the advertisements were finally printed. Defendant was aware or should have been aware that the printing would be done in Illinois. Finally, plaintiff was required to ship the goods, f.o.b. Chicago, Illinois, directing the carrier to make delivery to the Canton, Ohio, newspaper in which it would appear. Plaintiff’s obligation, title and risk of loss in the goods ceased then on the delivery to the carrier in Illinois. (Sections 2 — 401(2) (a) and 2 — 509 (1) (a) of the Illinois Uniform Commercial Code, Ill. Rev. Stat. 1971, ch. 26, pars. 2 — 401(2) (a) and 2 — 509(1) (a).)2 The essential points of this business transaction for purposes of jurisdictional questions are that plaintiff accepted the contract in Illinois and that it was contemplated by the parties that plaintiff’s performánce would be conducted wholly within Illinois. See, Jack O’Donnell Chevrolet, Inc. v. Shankles, 276 F.Supp. 998 (N.D. Ill. 1967).

Defendant contends that our extension of the “long arm” statute in Cook and our decision here, under guidelines enunciated in Gray v. American Radiator & Standard Sanitary Corp. 22 Ill.2d 432; 176 N.E.2d 761, and Nelson v. Miller, 11 Ill.2d 378,143 N.E.2d 673, is improper since both these Supreme Court decisions involved the “tortious act” clause rather than the “transaction of businéss” clause as here. (Ill. Rev. Stat. 1971, ch. 110, par.

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308 N.E.2d 78, 17 Ill. App. 3d 14, 14 U.C.C. Rep. Serv. (West) 669, 1974 Ill. App. LEXIS 2940, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colony-press-inc-v-fleeman-illappct-1974.