Holland v. Hurley

212 P.3d 890, 221 Ariz. 552, 556 Ariz. Adv. Rep. 6, 2009 Ariz. App. LEXIS 701
CourtCourt of Appeals of Arizona
DecidedMay 19, 2009
Docket2 CA-CV 2008-0126
StatusPublished
Cited by1 cases

This text of 212 P.3d 890 (Holland v. Hurley) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holland v. Hurley, 212 P.3d 890, 221 Ariz. 552, 556 Ariz. Adv. Rep. 6, 2009 Ariz. App. LEXIS 701 (Ark. Ct. App. 2009).

Opinions

OPINION

PELANDER, Chief Judge.

¶ 1 This case presents a personal-jurisdiction issue of first impression in Arizona arising from plaintiff/appellant Jimmie Holland’s Internet purchase of a used automobile through the online auction site eBay. The trial court dismissed for lack of personal jurisdiction Holland’s action for damages [555]*555against the out-of-state eBay seller, defendant/appellee Michael Hurley. Holland challenges that ruling and also argues the court abused its discretion by refusing to stay its ruling on Hurley’s motion to dismiss to give Holland an opportunity to conduct discovery relating to the question of jurisdiction. Although the case presents a close question on the jurisdiction issue, we affirm.

Background

¶ 2 On appeal from a dismissal pursuant to Rule 12(b)(2), Ariz. R. Civ. P., we view the facts bearing on jurisdiction in the light most favorable to the plaintiff. Rollin v. William V. Frankel & Co., 196 Ariz. 350, ¶ 5, 996 P.2d 1254, 1256 (App.2000). We consider the pleadings and any affidavits filed in support of or opposition to the motion to dismiss, and we “aceept[] all material facts as alleged by the non-movant as true.”1 G.T. Helicopters, Inc. v. Helicopters, Ltd., 135 Ariz. 380, 382, 661 P.2d 230, 232 (App.1983). In 2007, Holland, an Arizona resident, purchased for $15,100 a 1976 Cadillac sedan from Hurley, a Michigan resident, through eBay. At an additional cost, Holland arranged to have the car transported to Tucson from Michigan. When the vehicle arrived in Arizona, it required repairs, and Holland determined its condition did not match Hurley’s representations and description of the vehicle in his eBay listing.

¶ 3 Holland filed this action against Hurley in Pima County Superior Court, claiming damages of $16,827 “[a]s a direct and proximate result of [Hurley’s] negligence,” and seeking judgment “for losses he incurred in the purchase of the Cadillac.” In his answer, Hurley asserted the court “laek[ed] personal jurisdiction” over him because he had not “had sufficient contact with the State of Arizona to subject [him] to jurisdiction.” Several months later, Hurley moved to dismiss the case on that basis pursuant to Rule 12(b)(2).2 After a hearing, the trial court granted the motion to dismiss, and Holland then moved for reconsideration. After Holland timely appealed from the order of dismissal, the court denied his motion for reconsideration.

Discussion

I. Personal jurisdiction

¶ 4 “Once the defendant has moved for dismissal for lack of jurisdiction, the plaintiff has the burden of establishing that jurisdiction is proper.” G.T. Helicopters, Inc., 135 Ariz. at 382, 661 P.2d at 232; see also Rollin, 196 Ariz. 350, ¶8, 996 P.2d at 1256. To meet “the burden of establishing the existence of personal jurisdiction,” a plaintiff “cannot ‘simply rest on the bare allegations of the complaint, but rather [is obliged] to come forward with facts, by affidavit or otherwise, supporting personal jurisdiction.’ ” Macpherson v. Taglione, 158 Ariz. 309, 311-12, 762 P.2d 596, 598-99 (App.1988), quoting Amba Mktg. Sys., Inc. v. Jobar Int'l, Inc., 551 F.2d 784, 787 (9th Cir.1977) (alteration in Macpherson). “We review de novo a dismissal for lack of in personam jurisdiction and ‘simply look to the non-moving party to make a prima facie showing of jurisdiction.’ ” A. Uberti & C. v. Leonardo, 181 Ariz. 565, 569, 892 P.2d 1354, 1358 (1995), quoting Barone v. Rich Bros. Interstate Display Fireworks Co., 25 F.3d 610, 612 (8th Cir.1994); see also Macpherson, 158 Ariz. at 312, 762 P.2d at 599 (“The plaintiff may meet his burden of proof on a Rule 12(b)(2) motion by a prima facie showing that jurisdiction was conferred by service under a long arm statute.”).

[556]*556¶ 5 Arizona courts “may exercise personal jurisdiction over parties, whether found within or outside the state, to the maximum extent permitted by the Constitution of this state and the Constitution of the United States.” Ariz. R. Civ. P. 4.2(a); see also Uberti, 181 Ariz. at 569, 892 P.2d at 1358 (because “Arizona will exert personal jurisdiction over a nonresident litigant to the maximum extent allowed by the federal constitution,” “jurisdictional issue ... hinges on federal law”). For a state to have personal jurisdiction over a nonresident defendant, the defendant must “have sufficient minimum contacts with the forum state such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.” Williams v. Lakeview Co., 199 Ariz. 1, ¶ 6, 13 P.3d 280, 282 (2000), citing Int’l Shoe Co. v. Washington, 326 U.S. 310, 320, 66 S.Ct. 154, 90 L.Ed. 95 (1945). Such jurisdiction may be either general or specific and, in either type, “ ‘the constitutional touchstone remains whether the defendant purposefully established “minimum contacts” in the forum State.’” Id., quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 474, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985). A determination of whether minimum contacts exist involves a qualitative, rather than quantitative, analysis. See Meyers v. Hamilton Corp., 143 Ariz. 249, 253, 693 P.2d 904, 908 (1984). But a defendant’s “isolated or sporadic contacts with this state will not suffice” to confer personal jurisdiction. Id. at 252, 693 P.2d at 907.

¶ 6 “General jurisdiction applies only when the defendant has ‘substantial’ or ‘continuous and systematic’ contacts with Arizona.” Austin v. CrystalTech Web Hosting, 211 Ariz. 569, ¶ 17, 125 P.3d 389, 394 (App.2005), quoting Batton v. Term. Farmers Mut. Ins. Co., 153 Ariz. 268, 270, 736 P.2d 2, 4 (1987), quoting Helicopteros Nacionales v. Hall, 466 U.S. 408, 414, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984); see also Williams, 199 Ariz. 1, ¶ 6, 13 P.3d at 282. Holland apparently concedes that Hurley “has no agents, no physical presence, no offices, and no property within Arizona.” Uberti, 181 Ariz. at 569, 892 P.2d at 1358. Therefore, Holland correctly acknowledges that Hurley is not subject to Arizona’s general jurisdiction. See Williams, 199 Ariz. 1, ¶ 6, 13 P.3d at 282 (“The level of contact required to show general jurisdiction is quite high.”).

¶ 7 Holland, however, contends Arizona has specific jurisdiction over Hurley. As our supreme court has stated:

When a defendant’s activities in the forum state are not so pervasive as to subject it to general jurisdiction, the court may still find specific jurisdiction if: (1) the defendant purposefully avails himself of the privilege of conducting business in the forum; (2) the claim arises out of or relates to the defendant’s contact with the forum; and (3) the exercise of jurisdiction is reasonable.

Id. ¶ 7;

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Holland v. Hurley
212 P.3d 890 (Court of Appeals of Arizona, 2009)

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Bluebook (online)
212 P.3d 890, 221 Ariz. 552, 556 Ariz. Adv. Rep. 6, 2009 Ariz. App. LEXIS 701, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holland-v-hurley-arizctapp-2009.