Cove-Craft Industries Inc. v. B. L. Armstrong Co. Ltd.

412 A.2d 1028, 120 N.H. 195, 1980 N.H. LEXIS 254
CourtSupreme Court of New Hampshire
DecidedMarch 13, 1980
Docket79-230
StatusPublished
Cited by23 cases

This text of 412 A.2d 1028 (Cove-Craft Industries Inc. v. B. L. Armstrong Co. Ltd.) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cove-Craft Industries Inc. v. B. L. Armstrong Co. Ltd., 412 A.2d 1028, 120 N.H. 195, 1980 N.H. LEXIS 254 (N.H. 1980).

Opinion

*197 GRIMES, C.J.

The issues in this contract case are whether the requirements of RSA 300:14, New Hampshire’s long-arm statute, have been met and, if so, whether the defendant, a foreign corporation, has sufficient contacts with this State to enable the court to assert jurisdiction over it. We hold that, in the present case, jurisdiction attaches.

The plaintiff is a New Hampshire corporation engaged in the manufacture of wooden crutches in Gilford. The defendant is a Canadian brokerage company dealing with, among other things, the sale of hardwood veneer. In essence, the defendant acts as a middleman between buyers and the Canadian mills which produce veneer.

Over the eighteen years it has been in business, the defendant has sold materials to various companies doing business in this State. Moreover, the defendant advertises in certain trade magazines which are distributed in New Hampshire. Although the defendant maintains no agents or officers in this State, before this controversy arose, one of the defendant’s officers visited the plaintiff’s facilities on at least one occasion.

The original contract between the parties arose by virtue of a letter from the plaintiff expressing interest in obtaining veneers and requesting a price quotation. Thereafter, the plaintiff sent purchase orders to the defendant which subsequently arranged with a mill for shipment. The plaintiffs purchase orders routinely stated “[s]ame must arrive . . .,” specifying a date. In reply, the defendant’s acknowledgments specified “F.O.B. the Mill,” although some also expressly stated, on a line labeled shipping date, “to arrive week of ”

Subsequent to a change in ownership of the plaintiff corporation in 1978, the new management contacted officers of the defendant regarding future veneer purchases. Upon receiving assurances that an outstanding balance would be paid, the defendant agreed to accept further orders from the plaintiff.

In May 1978, the plaintiff issued a purchase order for four different “loads.” With respect to each load, the purchase order specified a required date of arrival in Laconia. The defendant returned four separate acknowledgments, each including the term “F.O.B. the Mill” but also stating after each shipping date “[t]o arrive ....” with date specified. Claiming late delivery and poor quality of the tendered goods, the plaintiff brought suit against the defendant for damages.

Suit was instituted against the defendant by service of process upon the secretary of state pursuant to RSA 300:14, the New Hampshire long-arm statute. Appearing specially, the defendant filed a motion to dismiss for lack of jurisdiction. After a hearing and recommendation *198 by a Master {Robert A. Carignan, Esq.), the motion was denied by the Trial Court {Batchelder, J.). The defendant seasonably appealed.

In determining whether the defendant corporation is amenable to suit in New Hampshire, our first inquiry is whether the requirements of RSA 300:14 regarding in personam jurisdiction have been met. Town of Haverhill v. City Bank & Trust Co., 119 N.H. 409, 402 A.2d 185 (1979). Only when that is so must we consider whether the defendant had contacts with this state sufficient to satisfy due process. See, e.g., World-Wide Volkswagen Corp. v. Woodson, 100 S. Ct. 559 (1980); International Shoe Co. v. Washington, 326 U.S. 310 (1945).

In pertinent part, RSA 300:14 provides:

If a foreign corporation makes a contract to be performed in whole or in part by either party in New Hampshire . . . such acts shall be deemed to be doing business in New Hampshire by such foreign corporation and shall be deemed equivalent to the appointment . . . of the secretary of state of New Hampshire... to be its ... attorney upon whom may be served all lawful process in any actions... arising from or growing out of such contract —

We construe this statute “to allow the exercise of jurisdiction over foreign corporations to the full extent of the constitutional limit.” Engineering Associates v. B & L Liquidating Corp., 115 N.H. 508, 511, 345 A.2d 900, 902 (1975). Moreover, performance of any part of the contract in New Hampshire by either party thereto renders the statute applicable to both. Town of Haverhill v. City Bank & Trust Co., 119 N.H. 409, 412, 402 A.2d 185, 187 (1979).

The plaintiff argues that because the parties envisioned delivery of the veneers at its place of business in Laconia, the contract is one “to be performed ... in part ... in New Hampshire.” RSA 300:14. The defendant, on the other hand, asserts that its obligation ended when the goods were delivered to a common carrier in Canada. Thus, in its view, the contract was completed outside this State. In support of this contention, the defendant relies on the term “F.O.B. the Mill” included in its acknowledgments to the plaintiffs purchase orders.

*199 Arguably, this agreement is governed by New Hampshire’s version of the Uniform Commercial Code, RSA ch. 382-A. That statute applies, absent the parties’ agreement to the contrary, “to transactions bearing an appropriate relation to this state.” RSA 382-A:l-105(l). A contract by which goods are to be “delivered, shipped or received in New Hampshire . . .” bears such an “appropriate relation to this state.” New Hampshire Comments, RSA 382-A: 1-105 (emphasis added). Even if Canadian law were to govern the agreement, however, where there is no evidence of foreign law, it is presumed to be in accord with New Hampshire common law. Garapedian Inc. v. Anderson, 92 N.H. 390, 31 A.2d 371 (1943).

Under the Code, F.O.B., meaning free on board, is a delivery term specifying the seller’s duties regarding the goods. RSA 382-A:2-319. Unless the parties display some other intent, “F.O.B. the Mill” means that the seller must bear the expense and risk of placing the goods in the hands of a carrier. Id.; see RSA 382-A:2-504.

When, as here, the contract consists of various documents, the intent of the parties must be determined from all the instruments read together. Bellak v. Franconia College, 118 N.H. 313, 386 A.2d 1266 (1978). Aside from the F.O.B. term, the plaintiff specified that the goods must arrive at Laconia by a certain date. The defendant’s acknowledgments expressly recognized this. Moreover, the defendant’s principal stockholder and officer testified that the defendant was obligated to have the veneer at the plaintiff’s place of business no later than the specified dates.

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Bluebook (online)
412 A.2d 1028, 120 N.H. 195, 1980 N.H. LEXIS 254, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cove-craft-industries-inc-v-b-l-armstrong-co-ltd-nh-1980.