Hernandez v. Santiago

140 F. Supp. 2d 567, 2001 U.S. Dist. LEXIS 6170, 2001 WL 490931
CourtDistrict Court, E.D. North Carolina
DecidedMarch 1, 2001
Docket5:98-cv-00144
StatusPublished
Cited by1 cases

This text of 140 F. Supp. 2d 567 (Hernandez v. Santiago) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hernandez v. Santiago, 140 F. Supp. 2d 567, 2001 U.S. Dist. LEXIS 6170, 2001 WL 490931 (E.D.N.C. 2001).

Opinion

ORDER

HOWARD, District Judge.

This matter is before the court on defendants’ motion to dismiss under Rules 12(b)(2) and 12(b)(3) of the Federal Rules of Civil Procedure. The parties have responded and replied respectively. This matter is ripe for adjudication.

STATEMENT OF THE CASE

This action arises out of a traffic accident that occurred in Hanau, Germany, on March 3, 1995. This action was commenced on February 27, 1998, when Jesus Hernandez, father of plaintiff Nydia Kira Hernandez, filed a pro se complaint against (1) defendant Santiago, the driver of the vehicle, and (2) AIG Europe, the carrier that insured the car Santiago was driving, and, (3) American International Group, the parent company of AIG Europe, S.A. (“AIG Europe”). Defendants have filed the motion to dismiss before the court based on lack of personal jurisdiction and improper venue.

Defendant Migdalia Santiago is a citizen of the United States and was born and raised in Puerto Rico. Her husband, Miguel Santiago (“Mr.Santiago”), was also born in Puerto Rico and lived there until, enlisting in the United States Army in 1990. According to her affidavit, Santiago has only lived outside of Puerto Rico when accompanying her husband to his military stations of duty. Mr. Santiago is currently stationed in Germany.

After Mr. Santiago’s military training was completed, the couple moved to Fort Carson, Colorado, where they were stationed from 1990 until December 1992, at which time Mr. Santiago was transferred to Hanau, Germany. Before moving to Germany, the Santiagos returned to Puer-to Rico for three weeks in December 1992.

The automobile accident which gives rise to this action occurred on March 3, 1995. On the accident report filed by the police in the matter, defendant Santiago identified her place of residence as Puerto Rico. At the time of the accident, Santiago had never been to North Carolina, and her domicile was, at that time, Puerto Rico.

The Santiagos left Germany in late 1995 after Mr. Santiago was transferred to Fort Bragg, North Carolina. From January 1996 until February 1998, Mr. Santiago was stationed at Port Bragg. During this period, the Santiagos purchased a house in Jacksonville, North Carolina.

*569 In or about early 1998, Mr. Santiago received orders that he was being transferred back to Germany. In February 1998, the Santiagos left North Carolina and returned to Puerto Rico for one month before moving back to Germany. The Santiagos have lived in Baumholder, Germany, from March 1998 until present.

When they left North Carolina, the San-tiagos did not sell the house they had purchased in Jacksonville because they had lived in the house for such a short time that it did not make financial sense to sell it. Rather, the Santiagos rented, and continue to rent the house. To do so, they have arranged for a real estate agent to manage the property for them. This agent rents the property and deposits the rent into a joint bank account the Santia-gos maintained in North Carolina for the sole purpose of depositing the rental deposits. Defendant Santiago has not returned to North Carolina since she and her husband left the state in 1998.

Defendant AIG Europe is a French corporation with its principal place of business in Paris, France. Among other things, AIG Europe underwrites automobile insurance policies for military service personnel and their families located in Europe. Mr. Santiago was serving in Germany when he entered into the insurance contract. The policy covered Mr. Santiago’s vehicle, which was registered in Germany. The policy was valid only for the time that the covered automobile was in Europe. Defendant Santiago was driving the insured vehicle in Germany when the accident occurred.

COURT’S DISCUSSION

I. Personal Jurisdiction

A. Standard of Review

In determining a challenge based on personal jurisdiction there is a two-prong approach. First, the court must determine if the North Carolina long-arm statute, N.C. Gen.Stat. § 1-75.4(1), permits the exercise of personal jurisdiction over the defendant. Second, the court must determine whether the exercise of personal jurisdiction over the defendant comports with due process under the United States Constitution as interpreted by the United States Supreme Court in International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945). Federal Deposit Ins. Corp. v. Britishr-American Corp., 726 F.Supp. 622 (E.D.N.C.1989).

First, under the North Carolina long-arm statute, N.C. Gen.Stat. § 1-75.4(1), a North Carolina court is permitted to exercise jurisdiction over a non-resident defendant if that non-resident defendant is: (a) a natural person present within this state, (b) a natural person domiciled within this state, (c) a domestic corporation, (d) engaged in substantial activity within this state.

Second, assuming the North Carolina long-arm statute confers jurisdiction over a non-resident defendant, the exercise of such jurisdiction must comport with the Due Process Clause of the Fourteenth Amendment of the United States Constitution. The Due Process Clause protects both individuals and corporate entities from having to respond to lawsuits in foreign jurisdictions where they lack “minimum contacts.” See e.g. International Shoe v. Washington, supra. “Minimum contacts” has been defined as the creation of a “substantial connection to the forum state by action purposefully directed toward the forum state or otherwise invoking the benefits and protections of the law of the state.” Lesnick v. Hollingsworth & Vose Co., 35 F.3d 939, 946 (4th Cir.1994), cert. denied, 513 U.S. 1151, 115 S.Ct. 1103, 130 L.Ed.2d 1070 (1995). In determining *570 whether the requisite minimum contacts exist, a court may properly consider the quantity of contacts between defendant and the forum state, the quality and nature of contacts, the interests of the forum state, and the convenience of the parties. United Advertising Agency, Inc. v. Robb, 391 F.Supp. 626, 629-680 (M.D.N.C.1975).

In addition to actions whereby the defendant has “purposely availed” itself of the benefits and protections of the forum state, due process requires that the court’s exercise of jurisdiction not offend “traditional notions of fair play and substantial justice.” See e.g. Asahi Metal Indus. Co. v. Superior Court, 480 U.S. 102, 112-113, 107 S.Ct. 1026, 94 L.Ed.2d 92 (1987); Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984).

B. Application

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Bluebook (online)
140 F. Supp. 2d 567, 2001 U.S. Dist. LEXIS 6170, 2001 WL 490931, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hernandez-v-santiago-nced-2001.