Eastern Technical Enterprises, Inc. v. Wilson & Hayes, Inc.

46 Va. Cir. 558, 1997 Va. Cir. LEXIS 533
CourtNorfolk County Circuit Court
DecidedJuly 10, 1997
DocketCase No. (Law) L95-1353
StatusPublished
Cited by5 cases

This text of 46 Va. Cir. 558 (Eastern Technical Enterprises, Inc. v. Wilson & Hayes, Inc.) is published on Counsel Stack Legal Research, covering Norfolk County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eastern Technical Enterprises, Inc. v. Wilson & Hayes, Inc., 46 Va. Cir. 558, 1997 Va. Cir. LEXIS 533 (Va. Super. Ct. 1997).

Opinion

By Judge Marc Jacobson

Eastern Technical Enterprises, Inc. (Plaintiff) filed a Motion for Judgment for breach of contract against Wilson & Hayes, Inc. (Defendant) alleging defective goods and untimely delivery. Defendant has moved to dismiss on the ground that this Court lacks personal jurisdiction under Section 8.01-328.1 of the Code of Virginia and the Due Process Clause of the Fourteenth Amendment to the United States Constitution.

Plaintiff is a Virginia corporation and is under a prime contract with the Navy to convert the vessel USNS Harkness into the training ship State of Maine. The site of the project is the Brooklyn Naval Ship Yard in New York. Defendant is a State of Washington corporation engaged in the manufacture and supply of ship furniture. Defendant is listed in a catalog of approved suppliers for contracts with the United States Government, and the catalog is distributed throughout the country.

Plaintiff contacted Defendant at Defendant’s offices in Seattle, Washington, about supplying bunks, doors, and related hardware for Plaintiffs [559]*559prime contract. Pursuant to the purchase order, delivery was designated at Plaintiffs project site: the Brooklyn Navy Yard in New York. The total contract price was $228,006, and the purchase order contained the following notation at the bottom: “This purchase agreement is subject to the terms and conditions of the signed agreement in the file.” The Court has received no evidence of any signed agreement. The purchase order was faxed from Brooklyn to Seattle and, the Plaintiff alleges, a copy of Plaintiffs standard terms and conditions was mailed to Defendant headquarters. The Defendant denies ever having received the standard terms and conditions and therefore contends that these terms and conditions were never made a part of the contract. The standard terms and conditions as proffered to the Court contained a forum dispute clause selecting the Eastern District of Virginia, Norfolk Division, and the Circuit Court of the City of Norfolk as the appropriate forums in which to bring suit.

The issue before the Court is whether the Defendant’s contacts with Virginia — specifically making phone calls to Virginia and shipping goods to Virginia— are sufficiently systematic and substantial so as to confer personal jurisdiction on this Court consistent with Section 8.01-328.1 of the Code of Virginia or the Due Process Clause of the Fourteenth Amendment to the U. S. Constitution.

This Court can have personal jurisdiction over a foreign, corporation in one of three ways. First, the corporation could consent to the jurisdiction of this Court by agreeing to a forum selection clause. The parties dispute whether this forum selection clause was a part of the contract. Second, the Court could have jurisdiction of the Defendant under Virginia’s long arm statute. Because this dispute did not arise out of Defendant’s contacts with Virginia, this Court does not have specific jurisdiction under the long arm statute. Third, this Court may assert general personal jurisdiction over a foreign corporation if the corporation’s contacts with the state are sufficiently systematic and substantial.

I. PlaintiffHas Not Met the Burden ofProof that Defendant Consented to the Court’s Jurisdiction

While subject matter jurisdiction cannot be conferred on this court by the consent of the parties, Humphries v. Commonwealth, 186 Va. 765, 772-73, 43 S.E.2d 890, 894 (1947), the Supreme Court of Virginia has held that a party can consent to personal jurisdiction by agreeing to a forum sélection clause. Paul Bus. Sys., Inc. v. Canon U.S.A., Inc., 240 Va. 337, 341-42, 397 S.E.2d 804, 806-07 (1990). In Virginia, forum selection clauses are valid and enforceable. Id.

[560]*560The Plaintiff bears the burden of proving this Court has personal jurisdiction over the Defendant. See McNutt v. General Motors Acceptance Corp., 298 U.S. 178 (1936). To determine whether the Plaintiff has established a prima facie case, this Court must draw all reasonable inferences from the pleadings and must resolve all factual disputes in favor of the Plaintiff. Mylan Labs., Inc. v. Akzo, N.V., 2 F.3d 56, 60 (4th Cir. 1993). The Plaintiff has submitted an affidavit from their vice president that claims he mailed the standard terms and conditions to Defendant in Seattle. The Court concludes that this affidavit does not satisfy the Plaintiffs burden of proof at this time, and the Court has been advised that counsel for both Plaintiff and Defendant do not wish to produce or submit any further evidence or argument. Because Plaintiff cannot prove that Defendant consented to the jurisdiction of this Court, then this Court may not exercise personal jurisdiction over the Defendant, because this Court has neither specific nor general personal jurisdiction.

II. This Court Does Not Have Specific Personal Jurisdiction over the Defendant

For this Court to have specific personal jurisdiction over foreign corporations, it must first find that the conditions of Virginia’s long arm statute, Va. Code Ann. § 8.01-328.1 (Michie 1992), are met. If those conditions are met, then this Court must also find that exercising specific personal jurisdiction does not offend the Due Process Clause of the federal Constitution. U.S. Const., Amend. XIV. The Virginia Supreme Court has truncated this analysis somewhat by holding that the long arm statute extends the jurisdiction of Virginia courts over nonresident defendants to the extent permitted by the Due Process Clause. John G. Kolbe, Inc. v. Chromodern Chair Co., 211 Va. 736, 740, 180 S.E.2d 664, 667 (1971). In this case, the Due Process analysis becomes moot, because the long arm statute does not extend to Defendant.

The long arm statute confers jurisdiction over “a person, who acts directly or by an agent, as to a cause of action arising from the person’s ... [transacting any business in this Commonwealth.” Va. Code Ann. § 8.01-328.1(A)(1) (Michie 1992). Courts have interpreted “arising from” to mean “but for” causation. See, e.g., Chedid v. Boardwalk Regency Corp., 756 F. Supp. 941 (E.D. Va. 1991). The Fourth Circuit has specifically held that Virginia’s long arm statute “does not extend to a contract formed and performed outside Virginia.” Promotions, Ltd. v. Brooklyn Bridge Centennial Comm., 763 F.2d 173 (4th Cir. 1985). In this case, Plaintiff formed the [561]*561contract with Defendant from their Brooklyn offices and Defendant shipped all goods to Plaintiffs Brooklyn drydock. No part of this contract had anything to do with Virginia and, therefore, this Court does not have jurisdiction under Virginia’s long arm statute.

III. This Court Does Not Have General Personal Jurisdiction over the Defendant

Although this Court does not have specific personal jurisdiction, it may nonetheless have general personal jurisdiction if the Defendant’s contacts with Virginia are systematic and substantial. Witt v.

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Cite This Page — Counsel Stack

Bluebook (online)
46 Va. Cir. 558, 1997 Va. Cir. LEXIS 533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eastern-technical-enterprises-inc-v-wilson-hayes-inc-vaccnorfolk-1997.