Continental Insurance v. Garrison

17 F. Supp. 2d 837, 1998 U.S. Dist. LEXIS 13353, 1998 WL 544352
CourtDistrict Court, E.D. Wisconsin
DecidedAugust 17, 1998
DocketNo. 98-C-191
StatusPublished

This text of 17 F. Supp. 2d 837 (Continental Insurance v. Garrison) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Insurance v. Garrison, 17 F. Supp. 2d 837, 1998 U.S. Dist. LEXIS 13353, 1998 WL 544352 (E.D. Wis. 1998).

Opinion

DECISION and ORDER

MYRON L. GORDON, District Judge.

On March 4, 1998, the plaintiffs, The Continental Insurance Company [“Continental”] and National Ben-Franklin Insurance Company of Illinois [“National Ben-Franklin”], started this action seeking a declaration as to their rights under a policy of insurance issued to the defendants to cover their 50' steel hull sailboat. In addition, the plaintiffs seek recission of the insurance contract on the ground that the defendants made material misrepresentations in connection with the renewal of the policy. The original policy was issued by Continental, and it insured the boat from July 1, 1996 to July 1, 1997. At the end of the policy period, the defendants renewed the policy for another year with National Ben-Franklin. The renewal policy was effective from July 1, 1997 to July 1, 1998.

Presently before the court is the defendants’ motion which seeks dismissal for lack of personal jurisdiction under Rule 12(b)(2), Federal Rules of Civil Procedure, and, in the alternative, for improper venue under Rule 12(b)(3), Federal Rules of Civil Procedure. The motion will be denied.

[838]*838 I. FACTUAL BACKGROUND

For purposes of analyzing a motion to dismiss, the court accepts as true the well-pleaded factual allegations in the complaint and must draw all reasonable inferences in favor of the plaintiffs. See Capitol Leasing Co. v. F.D.I.C., 999 F.2d 188, 191 (7th Cir.1993); Yeksigian v. Nappi, 900 F.2d 101, 102 (7th Cir.1990). In addition, the court is permitted to “look beyond the jurisdictional allegations of the complaint and view whatever evidence has been submitted on the issue to determine whether in fact personal jurisdiction exists.” Capitol Leasing Co., 999 F.2d at 191, (quoting Grafon Corp. v. Hausermann, 602 F.2d 781, 783 (7th Cir.1979)).

In view of the above, the following facts are taken as true for purposes of this motion. Christie and Jeffrey Garrison, who are husband and wife, purchased a 50" steel hull sailboat some time prior to July 1996. Continental insured the boat from July 1, 1996 to July 1,1997. On October 18,1996, the Garrisons sold their boat under a “Contract for Sale and Purchase” pursuant to which possession of the sailboat was immediately transferred to the buyer but title to the sailboat remained with the Garrisons until the purchase price was paid in full which was to be no later than October 1, 1997. The contract required the buyer to pay the Garrisons for the costs of insurance, and the Garrisons were to remit the payments to their insurer.

At the time the Garrisons entered into the “Contract for Sale and Purchase” they were residents of the state of Florida and were insured under the Continental insurance policy. In January 1997, the Garrisons moved to Sheboygan, Wisconsin.

Because the Continental policy was to expire on July 1, 1997, the Garrisons entered into a renewal contract with National Ben-Franklin, and it was to run from July 1,1997 through July 1, 1998. The Garrisons resided in Sheboygan when they negotiated and entered into the renewal insurance contract with National Ben-Franklin. The Garrisons paid premiums in connection with the National Ben-Franklin policy while they were residents of Wisconsin. The renewed insurance contract was delivered to the Garrisons in Wisconsin.

The sailboat was involved in an accident on August 16, 1997, when the buyer ran it aground off of Block Island, Rhode Island. The buyer had not yet obtained title to the sailboat. At the time of the boat accident, the Garrisons were residents of Wisconsin.

II. PERSONAL JURISDICTION

In their motion to dismiss, the defendants argue that this court lacks personal jurisdiction over them because they do not have an appropriate connection with the forum state. In response, the plaintiffs contend that personal jurisdiction exists over the Garrisons because (1) their contacts with the state of Wisconsin subject them to jurisdiction under various provisions of the Wisconsin long-arm statute, and (2) the exercise of jurisdiction comports with the requirements of due process under the Fourteenth Amendment.

In diversity cases, a federal district court has personal jurisdiction over a party if a court of the state in which it sits would have such jurisdiction. Heritage House Restaurants v. Continental Funding Group, Inc., 906 F.2d 276, 279 (7th Cir.1990); Banta Corp. v. Hunter Pub. Ltd. Partnership, 915 F.Supp. 80, 82 (E.D.Wis.1995). This analysis involves a two-prong inquiry. First, the court must determine whether the defendants are subject to personal jurisdiction under the Wisconsin long-arm statute. Daniel J. Hartwig Associates, Inc. v. Kanner, 913 F.2d 1213, 1216 (7th Cir.1990); Banta Corp., 915 F.Supp. at 82. If the court answers this question in the affirmative, then the court must determine whether the exercise of personal jurisdiction under the Wisconsin long-arm statute comports with the due process requirements of the Fourteenth Amendment. Id.

The plaintiff bears the burden of proving the existence of personal jurisdiction. Id. at 83 (citing Lincoln v. Seawright, 104 Wis.2d 4, 9, 310 N.W.2d 596 (1981)). A plaintiff meets his burden by making a prima facie showing that personal jurisdiction is conferred under the relevant long-arm statute. Nelson by Carson v. Park Industries, Inc., 717 F.2d 1120, 1123 (7th Cir.1983), cert. denied sub [839]*839nom., 465 U.S. 1024, 104 S.Ct. 1277, 79 L.Ed.2d 682 (1984).

A Wisconsin’s Long-Arm Statute

The plaintiffs assert that the defendants’ contacts with the state of Wisconsin subject them to the jurisdiction of this court under §§ 801.05(3), 801.05(5)(a) and 801.05(10)(a) of the Wisconsin long-arm statute. Under § 801.05(3), a Wisconsin court has personal jurisdiction over a party:

In any action claiming injury to person or property within or without this state arising out of an act or omission within this state by the defendant.

According to the plaintiffs, the Garrisons’ failure to inform National Ben-Franklin that they had sold their boat pursuant to the “Contract for Sale and Purchase” when they renewed their insurance policy constituted an act or omission within the state of Wisconsin.

Count two of the: two-count complaint alleges that “the Garrisons materially misrepresented their ownership and possession of the boat at the time the renewal policy was issued by ...

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Bluebook (online)
17 F. Supp. 2d 837, 1998 U.S. Dist. LEXIS 13353, 1998 WL 544352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-insurance-v-garrison-wied-1998.