Highway Auto Sales, Inc. v. Auto-Konig of Scottsdale, Inc.

943 F. Supp. 825, 1996 U.S. Dist. LEXIS 19777, 1996 WL 566947
CourtDistrict Court, N.D. Ohio
DecidedSeptember 20, 1996
Docket3:96CV7276
StatusPublished
Cited by21 cases

This text of 943 F. Supp. 825 (Highway Auto Sales, Inc. v. Auto-Konig of Scottsdale, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Highway Auto Sales, Inc. v. Auto-Konig of Scottsdale, Inc., 943 F. Supp. 825, 1996 U.S. Dist. LEXIS 19777, 1996 WL 566947 (N.D. Ohio 1996).

Opinion

MEMORANDUM AND ORDER

CARR, District Judge.

This case involves both contract and tort claims arising out of the sale of an automobile. Because complete diversity exists between the parties and the amount in controversy exceeds $50,000 exclusive of interest and costs, subject matter jurisdiction exists pursuant to 28 U.S.C. § 1332. Pending is defendant’s Rule 12(b)(2) motion to dismiss or transfer for lack of personal jurisdiction. (Doci 5). For the following reasons, defendant’s motion shall be granted and the case transferred to the District Court of Arizona.

In January 1996, Mr. Joseph Liber (Li-ber), President of plaintiff Highway Auto Sales, Inc., saw an advertisement in the DuPont Registry — a national" publication specializing in new or pre-owned vehicles — offering a “1991 F40 Coupe Ferrari” for sale for $275,000. An automobile dealer specializing in the sale of expensive and rare automobiles, Liber telephoned defendant to inquire about the Ferrari, its availability and condition. Mr. David Murphy (Murphy), General Manager of defendant Auto-Konig of Scottsdale, Inc. (Auto-Konig), received plaintiffs phone call and answered some preliminary questions about the Ferrari. Not having the answers to all of Liber’s questions, Murphy said he would “get back” to Liber after an inspection of the vehicle. On “getting back” to Liber, Murphy allegedly assured Liber that the Ferrari was in “excellent condition” and “authentic.” (Plaintiffs Complaint at . ¶ 7). The parties agreed upon a purchase price of $226,000 including delivery of the car to Toledo, Ohio, the location of plaintiff. Plaintiff paid the purchase price in full and defendant delivered the vehicle on February 5,1996.

On inspecting the vehicle in Toledo, Liber discovered several problems with the Ferar-ri, including ripped and stained seat covers, nicks in the windshield and right rear “dog leg,” hairline cracks in the spoiler, and chipped paint in at least two locations on the car. (Plaintiffs Complaint at ¶ 12). Furthermore, by comparing his newly-purchased Ferrari to other “authentic” Ferraris, Liber discerned that the Auto-Konig Ferrari was *828 not “authentic,” as evidenced by the style of the seat belts and the color of the embossed name on the rear spoiler of the vehicle. (Plaintiffs Complaint at ¶¶ 10-11). On April 15, 1996, plaintiff revoked acceptance of the Ferrari and demanded return of the purchase price plus interest. Defendant refused to rescind the sale. Plaintiff brings this suit claiming breach of contract, breach of express warranty, breach of implied warranty, negligent misrepresentation, and fraud.

Without responding to the merits of plaintiffs claim, defendant moves for dismissal or transfer based on lack of personal jurisdiction. Defendant asserts that this court cannot exercise personal jurisdiction under either Ohio’s long-arm statute, O.R.C. § 2307.382, or the limits imposed by the due process clause of the Constitution. For the following reasons, I agree with defendant that the contacts presented in this case do not meet the “minimum contacts” requirement for personal jurisdiction as articulated by the Supreme Court and applied in our Circuit. Therefore, this case should be transferred to the District of Arizona.

The Sixth Circuit recently affirmed that when “a district court rules on a jurisdictional motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(2) without conducting an evidentiary hearing, the court must consider the pleadings and affidavits in a light most favorable to the plaintiff.” CompuServe Inc. v. Patterson, 89 F.3d 1257, 1262 (1996) (citing Theunissen v. Matthews, 935 F.2d 1454, 1458-59 (6th Cir.1991)). Put sim-' ply, “[dismissal in this procedural posture is proper only if all the specific facts which the plaintiff alleges collectively fail to state a prima facie case for jurisdiction.” Id. Having not held an evidentiary hearing, this analysis of personal jurisdiction is undertaken without regard to defendant’s affidavits, 1 because I am looking only to see if plaintiff makes out a prima facie case of in personam jurisdiction.

To gain personal jurisdiction over a defendant, plaintiff must show: (1) the defendant is amenable to suit under the forum state’s long-arm statute; and (2) due process requirements of the Constitution are met. CompuServe, 89 F.3d at 1262; Reynolds v. International Amateur Athletic Fed’n, 23 F.3d 1110, 1115 (6th Cir.1994); In-Flight Devices Corp. v. Van Dusen Air, Inc., 466 F.2d 220, 224 (6th Cir.1972). Therefore, plaintiff must demonstrate that this court possesses the statutory power as well as the constitutional right to hear this case. ■

Ohio’s Long-Arm Statute

The Ohio long-arm statute, O.R.C. § 2307.382(A), broadly provides jurisdiction over any person or corporation:

(1) transacting any business in this state; (2) contracting to supply services or goods in this state; ... (6) causing tortious injury in this state to any person by an act outside this state committed with the purpose of injuring persons, when he might reasonably have expected that some person would be injured thereby in this state;

The Sixth Circuit has read the “transacting business” clause of Ohio’s long-arm statute as “extend[ing] to the federal constitutional limits of due process,” and intending to reach “as far as the Due Process Clause will allow.” CompuServe, 89 F.3d at 1262, 1266. The Ohio Supreme Court, however, has stated that the “claim that the General Assembly intended the long-arm statute ‘to give Ohio courts jurisdiction to the limits of the Due Process Clause’ is erroneous, since that interpretation would render the first part of the court’s two-part analysis nugatory.” Goldstein v. Christiansen, 70 Ohio St.3d 232, 238 n. 1, 638 N.E.2d 541 (1994) (citing McCormac, Ohio Civil Rules Practice 49 (2d ed.1992)) (“Ohio has not extended long-arm jurisdiction to the limits of due process”). Thus, whether defendant’s actions bring it under the scope of Ohio’s long-arm requires more than mere passing reference.

*829

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Bluebook (online)
943 F. Supp. 825, 1996 U.S. Dist. LEXIS 19777, 1996 WL 566947, Counsel Stack Legal Research, https://law.counselstack.com/opinion/highway-auto-sales-inc-v-auto-konig-of-scottsdale-inc-ohnd-1996.