Jeremy Hamilton v. Betty Hamilton

142 So. 3d 969, 2014 WL 3605485, 2014 Fla. App. LEXIS 11191
CourtDistrict Court of Appeal of Florida
DecidedJuly 23, 2014
Docket4D14-37
StatusPublished
Cited by8 cases

This text of 142 So. 3d 969 (Jeremy Hamilton v. Betty Hamilton) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jeremy Hamilton v. Betty Hamilton, 142 So. 3d 969, 2014 WL 3605485, 2014 Fla. App. LEXIS 11191 (Fla. Ct. App. 2014).

Opinion

MAY, J.

A question of personal jurisdiction is at the center of this appeal. A stepson appeals an order denying his motion to dismiss for lack of personal jurisdiction and an order granting a temporary injunction. He argues the trial court erred in denying *970 his motion to dismiss and granting the temporary injunction because he lacks minimum contacts with the State of Florida. We agree and reverse.

The dispute arises out of family owned and operated adult entertainment establishments in Michigan. Ownership of the establishments is governed by the terms of the Hamilton Family Subchapter S Voting Trust, which was executed in 2006 in Michigan. Each named beneficiary was given a one-fifth interest in shares of stock in the businesses. The five beneficiaries of the Trust were: the stepson, John I. Hamilton, Jr., Charles J. Hamilton, Michael I. Hamilton, and Courtney Vanloo. The managing trustee was the father, who managed the businesses on behalf of the beneficiaries.

Upon the father’s death in 2010, the surviving spouse and stepmother became the managing trustee and also acquired John I. Hamilton, Jr.’s one-fifth interest. As managing trustee, she maintained the bank accounts for the businesses. The Trust provided that the managing trustee “may only be removed by a vote of two-thirds (2/3) of the voting interest and only at a meeting called for the purpose of removing the Managing Trustee.” 1

The stepson was interested in selling his stock, but none of the beneficiaries wanted to purchase it. The beneficiaries, including the stepson, executed a Stock Restriction Agreement, which set forth various terms governing the beneficiaries’ disposal of their shares of stock. After the execution of the Stock Restriction Agreement, the stepson again expressed his desire to sell his stock; his stepmother agreed to purchase his interest.

The stepson asked a family financial adviser in Michigan to prepare and deliver a preliminary stock purchase agreement setting forth basic terms to govern the proposed sale to his stepmother. The financial adviser faxed the “Preliminary Stock Purchase Agreement” to the stepmother’s attorney in Florida. All of the other beneficiaries were aware of the preliminary offer to sell the stepson’s interest in the businesses; none of them objected.

The stepmother and stepson executed the Stock Purchase Agreement. In return for the stepson’s stock, the stepmother agreed to pay him $2,000 per week for eight years. Paragraph seven of the agreement provided: “This Agreement is made in the State of Florida and shall be interpreted in accordance with the laws of the State of Florida. Venue shall be had in Broward County Florida and all parties agree to accept service of process by U.S. Mail to the addresses provided above.”

After the agreement was executed, the other beneficiaries, including the stepson, held a meeting without the stepmother. At this meeting, the stepson voted the stock he had already sold to his stepmother to remove her as the managing trustee. As a result of her removal, the remaining beneficiaries seized control of the businesses, which included unlawfully opening new bank accounts and illegally diverting the profits from the businesses away from the stepmother.

The stepmother filed suit against her stepson in Broward County for specific performance, breach of contract, and in-junctive relief. Both she and her stepson are residents of Michigan, but she has a residence in Broward County, Florida. The stepson moved to dismiss the complaint for lack of personal jurisdiction. 2

*971 The trial court heard the stepson’s motion to dismiss and the stepmother’s motion for temporary injunction. In his motion to dismiss, the stepson argued that the allegations in the complaint did not establish a basis for jurisdiction, pursuant to sections 685.102 and 48.198, Florida Statutes.

The stepson’s supporting affidavit attested that he is a resident of Michigan, does not reside in Florida, and has no contacts within Florida. The stepson does not own, hold, use, possess, or lease any property, maintain an office, or conduct business in Florida. He further attested that he has not entered into any contract in Florida and has not engaged in any acts with the stepmother in Florida. The stepmother did not file a response or affidavit refuting the attestations.

At the hearing, the stepson maintained that he had no contacts with Florida. The stepmother’s counsel argued that the terms of the Stock Purchase Agreement provided for jurisdiction in Florida, and the stepson wanted to execute the agreement in Florida because of an impending divorce.

The trial court denied the motion, stating:

I’ve reviewed the Stock Option Agreement, I’ve reviewed the Motion to Dismiss, I’ve reviewed the exhibits. I’ve also reviewed 685.101 and 102. 101 deals with the choice of laws that would apply. 102 deals with jurisdiction. Parties agreed under the Stock Option Agreement that jurisdiction would lie in Florida in Broward County and the Motion to Dismiss is denied.

The court also entered a temporary injunction. The stepson now appeals the order denying his motion to dismiss and the order granting the temporary injunction.

“Generally, a trial court’s ruling on a motion to dismiss for lack of personal jurisdiction is reviewed de novo. [Wjith respect to the determination of facts, we defer to the trial court. With respect to the application of those facts to the law, we review de novo.” Dev. Corp. of Palm Beach v. WBC Constr., L.L.C., 925 So.2d 1156, 1160 (Fla. 4th DCA 2006) (citations omitted) (internal quotation marks omitted).

Our supreme court has held that “a forum selection clause, designating Florida as the forum, cannot operate as the sole basis for Florida to exercise personal jurisdiction over an objecting non-resident defendant.” McRae v. J.D./M.D., Inc., 511 So.2d 540, 542 (Fla.1987). McRae, however, was decided prior to the enactment of sections 685.101 and 685.102, Florida Statutes. Those statutes provide a basis for jurisdiction under particularized circumstances.

The Third District discussed jurisdiction in light of these statutory provisions in Jetbroadband WV, LLC v. MasTec North America, Inc., 13 So.3d 159 (Fla. 3d DCA 2009). “[I]f certain requirements are met, parties may, by contract alone, confer personal jurisdiction on the courts of Florida.” Id. at 162. To satisfy the statutory requirements for personal jurisdiction under section 685.102, the contract, agreement, or undertaking must:

1. include a choice of law provision designating Florida law as the governing law;
2. include a provision whereby the nonresident agrees to submit to the jurisdiction of the courts of Florida;
*972 3. involve consideration of not less than $250,000;
4. not violate the United States Constitution; and
5.

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Bluebook (online)
142 So. 3d 969, 2014 WL 3605485, 2014 Fla. App. LEXIS 11191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jeremy-hamilton-v-betty-hamilton-fladistctapp-2014.