Concrete Wallsystems of Arkansas, Inc. v. Master Paint Industrial Coating Corp.

233 S.W.3d 157, 95 Ark. App. 21
CourtCourt of Appeals of Arkansas
DecidedMarch 22, 2006
DocketCA 05-1046
StatusPublished

This text of 233 S.W.3d 157 (Concrete Wallsystems of Arkansas, Inc. v. Master Paint Industrial Coating Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Concrete Wallsystems of Arkansas, Inc. v. Master Paint Industrial Coating Corp., 233 S.W.3d 157, 95 Ark. App. 21 (Ark. Ct. App. 2006).

Opinion

Robert J. Gladwin, Judge.

In this one-briefcase, appellant, Concrete Wallsystems of Arkansas, Inc. (Concrete), appeals from the trial court’s refusal to strike the answer of appellee, Master Paint Industrial Coating Corporation (Master Paint), and from the trial court’s dismissal of Concrete’s complaint for lack of jurisdiction over Master Paint. We reverse and remand on both points.

There is no material dispute as to the relevant facts. Concrete is an Arkansas corporation, and Master Paint is a Kansas corporation with no offices, agents, or employees in Arkansas. On or about September 2, 2003, Concrete agreed to purchase a stucco-like product from Master Paint. At various points, Concrete’s representatives went to Kansas, where they wrote a postdated $13,400 check to pay for their purchase, received training on the application of the product, and made arrangements to pick up materials and equipment. A Master Paint representative made one trip to Arkansas to instruct Concrete on the application of the product.

Concrete used the product to build a wall around a subdivision in Garland County. However, according to Concrete, the product did not perform as represented and Master Paint failed to correct the problem, despite promises to do so. As a result, Concrete stopped payment on the $13,400 check. When that occurred, Master Paint filed a materialman’s lien in Garland County on the realty where the product was used. Attached to the filing was an invoice showing that Concrete owed Master Paint $13,400.50.

Thereafter, Concrete filed a complaint against Master Paint in Garland County Circuit Court, alleging that Master Paint’s sale of a defective product and subsequent filing of a lien caused Concrete to suffer damages in excess of $17,000. Master Paint was served on June 25, 2004, and filed a timely answer questioning Arkansas’s jurisdiction over it. However, the answer was filed on Master Paint’s behalf by its president, Forouhar Vahdat, who is not an attorney. As a result, Concrete moved on January 6, 2005, to strike the answer. Master Paint then hired an Arkansas attorney, who filed an amended answer on February 11, 2005, urging that the complaint be dismissed for lack of personal jurisdiction.

Following a hearing, the trial court imposed a $500 sanction on Master Paint rather than grant what it called the “extreme relief’ of striking the answer. 1 The court then granted Master Paint’s motion to dismiss for lack of personal jurisdiction, noting that Master Paint owned no real property in Arkansas; had no employees, subsidiaries, representatives, or satellite offices in Arkansas; and had made only one brief visit to Arkansas for training purposes. The court also ruled that Master Paint’s lien filing in Arkansas did not create a basis for personal jurisdiction. Concrete now appeals from the denial of its motion to strike and from the trial court’s dismissal of its complaint for lack of personal jurisdiction.

We first address Concrete’s argument that the trial court should have stricken Master Paint’s initial answer, which was filed by its president, Forouhar Vahdat. We agree that the answer should have been stricken. Under Arkansas law, a corporation must be represented by a licensed attorney; it cannot be represented by a corporate officer who is not a licensed attorney. See, e.g., All City Glass & Mirror, Inc. v. McGraw Hill Info. Sys. Co., 295 Ark. 520, 750 S.W.2d 395 (1988); Roma Leathers, Inc. v. Ramey, 68 Ark. App. 1, 2 S.W.3d 82 (1999). Further, our supreme court has held that a pleading filed by one who is not licensed to practice law in Arkansas is a nullity and that the unauthorized filing is not an “amendable defect.” Preston v. Univ. of Ark., 354 Ark. 666, 677-78, 128 S.W.3d 430, 436-37 (2003) (citing Davenport v. Lee, 348 Ark. 148, 72 S.W.3d 85 (2002)). Thus, while we understand the trial court’s concern about imposing an extreme measure on Master Paint, the above authorities require that Master Paint’s initial answer be stricken. It was filed by a person who was not authorized to practice law and was consequently a nullity, and this infirmity was not cured by the subsequent filing of an answer by retained counsel. We therefore conclude that the trial court erred on this point.

The practical application of our ruling is that Master Paint now has no initial responsive pleading of record other than its amended answer, which was filed more than seven months after Master Paint was served with process, making it untimely. See Ark. R. Civ. P. 12(a)(1) (2005) (allowing a non-resident thirty days from the time of service in which to file an answer or other initial responsive pleading). Nevertheless, Master Paint’s defense of lack of personal jurisdiction remains viable and must be addressed in this appeal. Even an untimely answer may be adequate to preserve the defense oflack ofpersonal jurisdiction, where, as here, it raises that defense. See Dunklin v. First Magnus Fin. Corp., 79 Ark. App. 246, 86 S.W.3d 22 (2002); J&V Rest. Supply & Refrig., Inc. v. Supreme Fixture Co., 76 Ark. App. 505, 69 S.W.3d 881 (2002).

Under Arkansas’s long-arm statute, our courts have jurisdiction of all persons and causes of action to the maximum extent permitted by the Due Process Clause of the Fourteenth Amendment of the United States Constitution. Ark. Code Ann. § 16-4-101(B) (Repl. 1999). We determine whether jurisdiction can be exercised over a nonresident defendant by ascertaining whether the defendant has established sufficient minimum contacts with the State of Arkansas, such that the assumption of jurisdiction does not offend traditional notions of fair play and substantial justice. See Int’l Shoe Co. v. Washington, 326 U.S. 310 (1945); Davis v. St.Johns Health Sys., Inc., 348 Ark. 17, 71 S.W.3d 55 (2002). Additionally, attention must be paid to the quality and nature of those contacts and to whether the nonresident, through those contacts, has enjoyed the benefits and protections of Arkansas laws. See Davis, supra.

We also take into account whether the nonresident’s conduct and connection with Arkansas are such that he can “reasonably anticipate being haled into court” here, World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297 (1980), and whether he has purposefully directed his activities toward Arkansas residents or availed himself of the privilege of conducting activities in Arkansas. See Burger King Corp. v. Rudzewicz, 471 U.S. 462 (1985); John Norrell Arms, Inc. v. Higgins, 332 Ark.

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Related

International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
World-Wide Volkswagen Corp. v. Woodson
444 U.S. 286 (Supreme Court, 1980)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
Davis v. St. John's Health System, Inc.
71 S.W.3d 55 (Supreme Court of Arkansas, 2002)
John Norrell Arms, Inc. v. Higgins
962 S.W.2d 801 (Supreme Court of Arkansas, 1998)
Preston v. University of Arkansas for Medical Sciences
128 S.W.3d 430 (Supreme Court of Arkansas, 2003)
Davenport v. Lee
72 S.W.3d 85 (Supreme Court of Arkansas, 2002)
Dunklin v. First Magnus Financial Corp.
86 S.W.3d 22 (Court of Appeals of Arkansas, 2002)
All City Glass & Mirror, Inc. v. McGraw Hill Information Systems Co.
750 S.W.2d 395 (Supreme Court of Arkansas, 1988)
Roma Leathers, Inc. v. Ramey
2 S.W.3d 82 (Court of Appeals of Arkansas, 1999)
J&V Restaurant Supply & Refrigeration, Inc. v. Supreme Fixture Co.
69 S.W.3d 881 (Court of Appeals of Arkansas, 2002)

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Bluebook (online)
233 S.W.3d 157, 95 Ark. App. 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/concrete-wallsystems-of-arkansas-inc-v-master-paint-industrial-coating-arkctapp-2006.