Fausett v. Host

868 S.W.2d 472, 315 Ark. 527, 1994 Ark. LEXIS 2
CourtSupreme Court of Arkansas
DecidedJanuary 18, 1994
Docket93-470
StatusPublished
Cited by7 cases

This text of 868 S.W.2d 472 (Fausett v. Host) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fausett v. Host, 868 S.W.2d 472, 315 Ark. 527, 1994 Ark. LEXIS 2 (Ark. 1994).

Opinions

David Newbern, Justice.

The question in this case is whether a writ of prohibition may issue to prevent a trial court from asserting in personam jurisdiction. We hold that, when a trial court has made a determination that a person’s contacts with Arkansas are sufficient to satisfy the minimum contacts requirement of International Shoe Co. v. Washington, 326 U.S. 310 (1945), and Ark. Code Ann. § 16-4-101 C.l.(a) (Supp. 1993), the proper manner of challenging the decision is by appeal and not by a petition for a writ of prohibition.

Rodney and Sheila Host, the respondents, live in North Little Rock. They filed a complaint in Pulaski Circuit Court against Billie Fausett, the petitioner, who is a Missouri resident. The complaint alleged conversion and breach of a lease with option to purchase agreement. They claim Ms. Fausett improperly ousted them from the property which was the subject of the agreement and converted funds the Hosts had paid to her pursuant to the agreement. Ms. Fausett was served with process in Missouri. She moved to dismiss because the Trial Court lacked jurisdiction of her. A hearing was held, and the motion was denied.

At the hearing Mr. Host testified he was interested in buying a business in Branson, Missouri. He found a real estate agent by consulting a Branson newspaper. The agent he selected lives in Oak Grove, Arkansas, but does business in Branson. The agent led him to Billie Fausett, owner of a donut shop in Branson which was, apparently, for sale. The transaction then proceeded by telephone and by mail. There were two phone calls between Mr. Host and Ms. Fausett made while Mr. Host was in North Little Rock, and Ms. Fausett was at the home of her mother in Marshall, Arkansas. In one of them Ms. Fausett discussed the transaction. Mr. Host testified that Ms. Fausett had told him her mother, who lives in Marshall, is her accountant.

A contract form was sent to the Hosts. They signed an offer at their home in North Little Rock. It was not accepted. Another contract was mailed to them, they again executed it in North Little Rock, and it was accepted. Mr. Host testified that his sister lived in Branson and ran the business for them for some eight months. The Hosts also presented documentary evidence having to do with Ms. Fausett’s use of Arkansas suppliers of goods to the donut shop. We regard that evidence as irrelevant to the transaction at hand.

In his remarks preceding his decision to deny the motion to dismiss, the Trial Court acknowledged that our decision in CDI Contractors, Inc. v. Goff Steel Erectors, Inc., 301 Ark. 311, 783 S.W.2d 846 (1990), stated that use of interstate mail, telephone, railway, and banking facilities is insufficient, standing alone, to satisfy due process in asserting long-arm jurisdiction of a nonresident corporation. He then, however, referred to SD Leasing, Inc. v. Al Spain & Assoc., Inc., 277 Ark. 178, 640 S.W.2d 451 (1982), noting that it seemed important that the contract was signed (at least by one of the parties) in Arkansas. In his order, the Trial Court stated that the contacts with Arkansas were sufficient to satisfy the requirements set out in International Shoe Co. v. Washington, supra.

In response to Ms. Fausett’s petition for a writ of prohibition, the Hosts cite Wisconsin Brick and Block Corp. v. Cole, Judge, 274 Ark. 121, 622 S.W.2d 192 (1981). As in the case now before us, the question there was whether the claim arose out of the defendant’s “[transacting any business in this state.” Ark. Code Ann. § 16-4-101 C. l.(a) (Supp. 1993). We noted that “The purpose of this section of the statute is to permit courts to exercise the maximum personal jurisdiction allowable by due process. . . .” Then we quoted Hawes Firearm Co. v. Roberts, 263 Ark. 510, 565 S.W.2d 620 (1978), as follows:

A non-resident defendant filing a motion to dismiss or quash [on grounds that there are not sufficient contacts within the state] has the burden of going forward and offering proof to sustain the allegations of the motion. If the motion is denied, this does not mean that the plaintiff is relieved from establishing jurisdiction; it merely means that at this point in the proceedings a prima facie case of jurisdiction sufficient to take the cause to trial has been made.

We concluded our opinion in the Wisconsin Brick and Block Corp. case as follows:

Whether the “minimum contacts” test has been satisfied is a question of fact. In cases where jurisdiction depends upon the establishment of facts, the issue of jurisdiction must be decided by the trial court, and even if that decision should be wrong, we correct that error on appeal and not on prohibition. Robinson v. Means, Judge, 192 Ark. 816, 95 S.W.2d 98 (1936).

In her reply brief, Ms. Fausett responds to the Hosts’ citation of the Wisconsin Brick and Block Corp. case by saying the nonresident defendant in that case “had purchased brick products from [the plaintiff]... the resident seller, for 20 years, thus flunking the threshold question” of minimum contacts. She also says she has met the burden of the Hawes Firearm Co. case by showing at a hearing that there were no Arkansas contacts with respect to her participation in the transaction at hand. Both of those assertions have to do with facts which must be determined in the process of deciding whether there is jurisdiction of the person. They do not answer the holding in the Wisconsin Brick and Block Corp. case.

In Harris, Distributors, Inc. v. Marlin, Judge, 220 Ark. 621, 249 S.W.2d 3 (1952), we discussed the role of the writ of prohibition: “Of course the writ has in fact a well established place in our procedure. In the usual case it issued when the record shows without dispute that the trial court lacks jurisdiction of the person or of the subject matter.” The general reference to “jurisdiction of the person” as a basis for a writ of prohibition gives us pause. The case was not one which dealt with lack of jurisdiction of the person, however, and the only citation given for the obiter dictum with which we are concerned was Gainsburg v. Dodge, 193 Ark. 473, 101 S.W.2d 178 (1937). There it was held, based on a statute in effect at the time, that a nonresident defendant could not be subjected to a personal judgment (injunction) on the basis of constructive service of process.

There was a time and circumstance when the writ of prohibition was the only adequate remedy for one challenging a court’s assertion of in personam jurisdiction. The time, encompassing 1937 when the Gainsburg case was decided, was prior to the adoption of the Arkansas Rules of Civil Procedure, and the circumstance was when there had been no service of process, or faulty service, upon the defendant. We explained the situation in Order of Ry.

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Bluebook (online)
868 S.W.2d 472, 315 Ark. 527, 1994 Ark. LEXIS 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fausett-v-host-ark-1994.