Halak v. Scovill

686 A.2d 1245, 296 N.J. Super. 363, 1997 N.J. Super. LEXIS 20
CourtNew Jersey Superior Court Appellate Division
DecidedJanuary 15, 1997
StatusPublished
Cited by6 cases

This text of 686 A.2d 1245 (Halak v. Scovill) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Halak v. Scovill, 686 A.2d 1245, 296 N.J. Super. 363, 1997 N.J. Super. LEXIS 20 (N.J. Ct. App. 1997).

Opinion

The opinion of the court was delivered by

HUMPHREYS, J.A.D.

Plaintiff, an attorney and New Jersey resident, chartered a boat in Maryland for a three day excursion on the Chesapeake Bay. The boat malfunctioned. The parties could not agree on the amount of a refund. Plaintiff stopped payment on checks he had given to the defendants for the charter fee. The defendants then filed a criminal complaint in Maryland against the plaintiff based on the stopped payment. A warrant was issued for plaintiffs arrest. Defendants also allegedly advised other boat charterers in Maryland that plaintiff had issued a bad check and that a warrant for his arrest was outstanding.

Plaintiff engaged counsel in Maryland to defend against the criminal complaint. The Maryland Attorney General’s office determined that it would not prosecute the complaint and it was dismissed.

Plaintiff brought suit in New Jersey alleging breach of contract, malicious prosecution, abuse of process and defamation. The complaint was dismissed because: (1) service of process was insufficient; and (2) the court lacked “general personal jurisdiction over the defendants.” Plaintiff appeals the dismissal. We hold that sufficient minimum contacts with New Jersey have been shown and therefore jurisdiction may be exercised over the defendants.

I

When a lawsuit is filed, the court may assert personal jurisdiction over a party not present in the forum state if that party has [367]*367“certain minimum contacts with [the forum] such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.” International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95, 102 (1945); Lebel v. Everglades Marina, Inc., 115 N.J. 317, 322, 558 A.2d 1252 (1989).

The Court must evaluate “ ‘the burden on the defendant,’ ‘the forum state’s interest in adjudicating the dispute,’ ‘the plaintiffs interest in obtaining convenient and effective relief,’ ‘the interstate judicial system’s interest in obtaining the most efficient resolution of controversies,’ and the ‘shared interest of the several States in furthering fundamental substantive social policies.’ ” Burger King Corp. v. Rudzewicz, 471 U.S. 462, 477, 105 S.Ct. 2174, 2184, 85 L.Ed.2d 528, 543 (1985) (quoting World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 292, 100 S.Ct. 559, 564, 62 L.Ed.2d 490, 498 (1980)).

New Jersey will exercise jurisdiction on non-resident defendants “to the uttermost limits permitted by the United States Constitution.” Avdel Corp. v. Mecure, 58 N.J. 264, 268, 277 A.2d 207 (1971). Once “minimum contacts” have been found, the out-of-state defendant “must present a compelling ease that the presence of some other considerations would render jurisdiction unreasonable.” Burger King, supra, 471 U.S. at 477, 105 S.Ct. at 2185, 85 L.Ed.2d at 543; see also Lebel, supra, 115 N.J. at 328, 558 A.2d 1252.

The “measure of minimum contacts” varies depending on the nature of the case. Lebel, supra, 115 N.J. at 322, 558 A.2d 1252. If the cause of action relates directly to the defendant’s contacts with the forum state, the issue is one of “specific jurisdiction.” Ibid; Waste Management, Inc. v. Admiral Ins. Co., 138 N.J. 106, 119, 649 A.2d 379 (1994), cert. denied,-U.S.-, 115 S.Ct. 1175, 130 L.Ed.2d 1128 (1995); Citibank, N.A. v. Estate of Simpson, 290 N.J.Super. 519, 526, 676 A.2d 172 (App.Div.1996); Pfundstein v. Omnicom Group, Inc., 285 N.J.Super. 245, 251, 666 A.2d 1013 (App.Div.1995); Creative Business v. Magnum, 267 [368]*368N.J.Super. 560, 568-69, 632 A.2d 298 (App.Div.1993); Cruz v. Robinson Engineering Corp., 253 N.J.Super. 66, 72-73, 600 A.2d 1238 (App.Div.), certif. denied, 130 N.J. 9, 611 A.2d 648 (1992). If the suit is not related directly to the defendant’s contacts, but based instead “on the defendant’s continuous and systematic activities in the forum,” then the State’s exercise of jurisdiction is general. Waste Management, supra, 138 N.J. at 119, 649 A.2d 379.

In a specific jurisdiction case, the minimum contacts inquiry must focus on the relationship among the defendant, the forum and the litigation. A “lesser standard is required to sustain the exercise .of specific jurisdiction.” Citibank, supra, 290 N.J.Super. at 527, 676 A.2d 172. In such a case, “the ‘minimum contacts’ requirement is satisfied so long as the contacts resulted from the defendant’s purposeful conduct and not the unilateral activities of the plaintiff.” Lebel, supra, 115 N.J. at 323, 558 A.2d 1252. The purposeful contact requirement “ensures that a defendant will not. be haled into a jurisdiction solely as a result of ‘random,’ ‘fortuitous,’ or ‘attenuated,’ contacts.” Ibid. “The question is whether ‘the defendant’s conduct and connection with the forum State are such that he should reasonably anticipate being haled into court there.’ ” Id at 324, 558 A.2d 1252 (citing World-Wide Volkswagen, 444 U.S. at 297, 100 S.Ct. at 567, 62 L.Ed.2d at 501).

In Lebel, supra, the Court said that the mere fact that neither defendant nor the product sold by defendant was ever physically present in New Jersey does not preclude a finding that minimum contacts existed so long as the defendant’s efforts were purposely directed toward a resident of this State and the defendant was aware that the sale would have direct consequences in New Jersey. 115 N.J. at 327, 558 A.2d 1252. Under these circumstances, the court said, the defendant should have been aware of the possibility of litigation arising in New Jersey. Ibid.

Mere foreseeability of an event in another state is not a “sufficient benchmark” for the exercise of personal jurisdiction. Lebel, supra, 115 N.J. at 324, 558 A.2d 1252. However, if the [369]

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Bluebook (online)
686 A.2d 1245, 296 N.J. Super. 363, 1997 N.J. Super. LEXIS 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/halak-v-scovill-njsuperctappdiv-1997.