Ex parte Edgetech I.G., Inc. n/k/a Quanex I.G. Systems, Inc.

159 So. 3d 629, 2014 WL 3700359
CourtSupreme Court of Alabama
DecidedJuly 25, 2014
Docket1121291
StatusPublished
Cited by6 cases

This text of 159 So. 3d 629 (Ex parte Edgetech I.G., Inc. n/k/a Quanex I.G. Systems, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ex parte Edgetech I.G., Inc. n/k/a Quanex I.G. Systems, Inc., 159 So. 3d 629, 2014 WL 3700359 (Ala. 2014).

Opinion

*631 WISE, Justice.

Tiffin Motorhomes, Inc. (“Tiffin”), 1 sued Edgetech I.G., Inc., n/k/a Quanex I.G. Systems, Inc. (“Edgetech”); Quanex Building Products Corporation (“Quanex Building Products”); Thompson I.G., LLC, and RDM Consulting, LLC (hereinafter collectively referred to as “Thompson”); 2 and Wynne Enterprises, Inc., in the Franklin Circuit Court. Edgetech filed a motion to dismiss the claims against it for lack of personal jurisdiction; the trial court denied the motion. Edgetech then filed this petition for a writ of mandamus requesting that this Court direct the trial court to vacate its order denying the motion to dismiss and to enter an order granting the motion and dismissing the case against it. We grant the petition and issue the writ.

Factual Background and Procedural History

Edgetech manufactures a foam spacer product, “Super Spacer,” which is “sold in bulk and used by third-parties in the manufacture of insulated glass window units.” Thompson, a Michigan company, manufactures insulated-glass units for use in residential-home construction, in motor homes, and in recreational vehicles. Between 2005 and 2010, Thompson purchased Super Spacer “E-class” or ethylene propylene diene monomer (“EPDM”) product from Edgetech and started using the Super Spacer product in its insulated-glass units. Thompson then sold insulated-glass units that contained the Super Spacer product to Wynne Enterprises, an Alabama company that manufactures windows. Wynne Enterprises then sold completed window units that contained the Super Spacer product to Tiffin, which manufactures motor homes in Red Bay. Tiffin installed the window units containing the Super Spacer product in its motor homes.

On February 15, 2013, Tiffin filed a complaint in the Franklin Circuit Court, naming as defendants Thompson I.G., LLC, Edgetech I.G., Inc., and Wynne Enterprises. 3 The complaint alleged that, after fabrication and installation, windows that had been manufactured using the Super Spacer product had clouded, fogged, and failed; that there were issues with the adhesive used by Edgetech not adhering to the Super Spacer products; that the defendants had failed to remedy or to address the failure of the Super Spacer products; that the failure of the Super Spacer products had resulted in warranty claims against Tiffin; that the latent defect with the Super Spacer products required full replacement and installation of windows in motor homes using the Super Spacer products; and that Super Spacer products continued to fail in the field, causing Tiffin to continue to incur new warranty claims and associated costs. Tiffin alleged claims of breach of contract, breach of implied warranty, and breach of express warranty against all the defendants. It also alleged claims of fraud, suppression, and deceit against Edgetech, Thompson, and Quanex Building Products.

On April 17, 2013, pursuant to Rule 12(b)(2), Ala. R. Civ. P., Edgetech filed a motion to dismiss the claims against it for lack of personal jurisdiction. It subsequently filed a renewed motion to dismiss after Tiffin filed its first amended com *632 plaint. In its motion to dismiss, Edgeteeh argued that it did not have sufficient contacts with Alabama to establish that Alabama courts had either general or specific personal jurisdiction over it.

On June 26, 2013, Tiffin filed its opposition to the motion to dismiss and the renewed motion to dismiss. Tiffin argued:

“General jurisdiction is proper as [Edge-tech] has systematic and continuous contacts with Alabama due to its production facility in Decatur, Alabama;
“This Court has jurisdiction over Edge-tech because it knew its products were being shipped to customers in Alabama;
“Edgeteeh purposely availed itself of the privilege of doing business in Alabama because it markets goods through a distributor who has agreed to serve as its sales agent in Alabama.”

Alternatively, Tiffin requested an order allowing discovery directed to the issue of jurisdiction.

On July 10, 2013, the trial court entered an order denying Edgetech’s motion to dismiss. Edgeteeh then filed its petition for a writ of mandamus with this Court.

Standard of Review

“As we stated in Ex parte Duck Boo [International, Co., 985 So.2d 900 (Ala.2007) ], this Court recently addressed the standard of review in a proceeding challenging the trial court’s ruling on a motion to dismiss for lack of personal jurisdiction:
“ ‘ “ ‘The writ of mandamus is a drastic and extraordinary writ, to be “issued only when there is: 1) a clear legal right in the petitioner to the order sought; 2) an imperative duty upon the respondent to perform, accompanied by a refusal to do so; 3) the lack of another adequate remedy; and 4) properly invoked jurisdiction of the court.” Ex parte United Serv. Stations, Inc., 628 So.2d 501, 503 (Ala.1993); see also Ex parte Ziglar, 669 So.2d 133, 134 (Ala.1995).’ Ex parte Carter, [807 So.2d 534,] 536 [ (Ala.2001) ].”
‘“Ex parte McWilliams, 812 So.2d 318, 321 (Ala.2001). “An appellate court considers de novo a trial court’s judgment on a party’s motion to dismiss for lack of personal jurisdiction.” Elliott v. Van Kleef, 830 So.2d 726, 729 (Ala.2002).
“ ““ “In considering a Rule 12(b)(2), Ala. R. Civ. P., motion to dismiss for want of personal jurisdiction, a court must consider as true the allegations of the plaintiffs complaint not controverted by the defendant’s affidavits, Robinson v. Giarmarco & Bill, P.C., 74 F.3d 253 (11th Cir.1996), and Cable/Home Communication Corp. v. Network Productions, Inc., 902 F.2d 829 (11th Cir.1990), and “where the plaintiffs complaint and the defendant’s affidavits conflict, the ... court must construe all reasonable inferences in favor of the plaintiff.’ Robinson, 74 F.3d at 255 (quoting Madara v. Hall, 916 F.2d 1510, 1514 (11th Cir.1990)).” ’
“ ‘ “Wenger Tree Serv. v. Royal Truck & Equip., Inc., 853 So.2d 888, 894 (Ala.2002) (quoting Ex parte McInnis, 820 So.2d 795, 798 (Ala.2001)). However, if the defendant makes a prima facie evidentia-ry showing that the Court has no personal jurisdiction, ‘the plaintiff is then required to substantiate the jurisdictional allegations in the complaint by affidavits or other competent proof, and he may not merely reiterate the factual allegations in the complaint.’ Mercantile Capital, LP v. Federal Transtel, Inc., 193 *633 F.Supp.2d 1243, 1247 (N.D.Ala.2002) (citing Future Tech. Today, Inc. v. OSF Healthcare Sys., 218 F.3d 1247, 1249 (llth Cir.2000)). See also Hansen v.

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159 So. 3d 629, 2014 WL 3700359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ex-parte-edgetech-ig-inc-nka-quanex-ig-systems-inc-ala-2014.