John v. Sebring v. Air Equipment and Engineering, Inc., Donaldson Co., Inc., William W. Meyer and Sons, Inc., Newton Conveyors, Inc. and Emerson Power Transmission Corp.

CourtIndiana Court of Appeals
DecidedApril 4, 2013
Docket02A05-1211-PL-566
StatusPublished

This text of John v. Sebring v. Air Equipment and Engineering, Inc., Donaldson Co., Inc., William W. Meyer and Sons, Inc., Newton Conveyors, Inc. and Emerson Power Transmission Corp. (John v. Sebring v. Air Equipment and Engineering, Inc., Donaldson Co., Inc., William W. Meyer and Sons, Inc., Newton Conveyors, Inc. and Emerson Power Transmission Corp.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John v. Sebring v. Air Equipment and Engineering, Inc., Donaldson Co., Inc., William W. Meyer and Sons, Inc., Newton Conveyors, Inc. and Emerson Power Transmission Corp., (Ind. Ct. App. 2013).

Opinion

FOR PUBLICATION

ATTORNEY FOR APPELLANT: ATTORNEY FOR APPELLEE NEWTON CONVEYORS, INC.: DAVID M. LUTZ David M. Lutz LLC JAMES P. FENTON Fort Wayne, Indiana Eilbacher Fletcher, LLP Fort Wayne, Indiana

Apr 04 2013, 9:21 am

IN THE COURT OF APPEALS OF INDIANA

JOHN V. SEBRING, ) ) Appellant-Plaintiff, ) ) vs. ) No. 02A05-1211-PL-566 ) AIR EQUIPMENT AND ENGINEERING, INC., ) DONALDSON COMPANY, INC., WILLIAM ) W. MEYER AND SONS, INC., NEWTON ) CONVEYORS, INC., and EMERSON POWER ) TRANSMISSION CORPORATION, ) ) Appellees-Defendants. )

APPEAL FROM THE ALLEN SUPERIOR COURT The Honorable Daniel G. Heath, Judge Cause No. 02D01-1203-PL-96

April 4, 2013

OPINION - FOR PUBLICATION

CRONE, Judge Case Summary

John V. Sebring was injured while using a dust collector at his workplace in Fort

Wayne, Indiana. A component of the dust collector was manufactured by Newton

Conveyors, Inc. (“NCI”), a Texas corporation. Sebring sued NCI and several other

defendants in Indiana. NCI filed a motion to dismiss for lack of personal jurisdiction, which

the trial court granted.

Sebring appeals the dismissal. NCI’s role in the manufacturing process took place

entirely within Texas, and the manufacturer of the final product unilaterally decided to ship

the product to Indiana. Under these circumstances, NCI’s contact with Indiana is too

attenuated to support jurisdiction. Therefore, we affirm.

Facts and Procedural History

On March 22, 2012, in Allen Superior Court, Sebring filed a complaint, which alleged

that several of his fingers were amputated due to the malfunction of a modular baghouse dust

collector unit that he was using at his job at OmniSource. OmniSource is located in Fort

Wayne, Indiana. The dust collector was manufactured by Donaldson Company, Inc.

(“Donaldson”), which is incorporated under the laws of Delaware and has a plant in

Nicholasville, Kentucky. Donaldson purchased a component part, a screw conveyor, from

NCI, which is incorporated under the laws of Texas and has its sole place of business in

Cleburne, Texas. Donaldson and NCI were among the defendants named in Sebring’s

complaint.

On June 12, 2012, NCI filed a motion to dismiss for lack of personal jurisdiction.

2 NCI submitted a memorandum in support of its motion, along with an affidavit from NCI’s

president and documentation of the sale of the screw conveyor. The affidavit states that NCI

does not have any employees or facilities in Indiana. Between March 1991 and October

1993, NCI “had a national advertising program via fax, portions of which may have been

directed to Indiana,” but since then, NCI has not done any advertising in Indiana.

Appellant’s App. at 72. NCI does not have a telephone number or listing in Indiana.

Between June 15, 2001, and January 31, 2003, NCI had an independent sales representative

in Ohio whose territory included northern Indiana; however, NCI has no record of any sales

being made in Indiana during this time. Since January 31, 2003, NCI has not had a sales

representative or a distribution network in Indiana. NCI does not hold any Indiana business

licenses, nor does it have any “ongoing business relationships with any Indiana residents.”

Id. at 73.

The affidavit gives the following account of the transaction between NCI and

Donaldson:

42. On January 31, 2005, Donaldson faxed from its Nicholasville, Kentucky facility, a purchase order to NCI requiring NCI to have the screw conveyor ready for shipment by March 9, 2005. This purchase order was accepted by NCI on January 31, 2005 by a fax transmission to Donaldson’s facility in Nicholasville, Kentucky .…

43. By agreement of NCI and Donaldson the shipping date was changed to March 25, 2005.

44. In addition, on January 31, 2005, Donaldson’s purchase order informed NCI that the destination for the conveyor was “OmniSource, 7625 Vicksburg Pike, Fort Wayne, Indiana 46804.” The Donaldson purchase order

3 specified that the shipment would be “F.O.B.[1] ORIGIN SHIPPING POINT,” which was NCI’s facility in Cleburne, Texas.

45. On March 22, 2005, ATS truck line picked up the conveyor, F.O.B. at NCI’s location in Cleburne, Texas, for shipment to OmniSource’s location in Fort Wayne, Indiana .…

46. All freight charges were paid by Donaldson and Donaldson chose the carrier, ATS truck line.

47. Ordinarily, Donaldson would have had NCI direct this conveyor to Donaldson’s plant in Nicholasville, Kentucky. However, because Donaldson wished to expedite delivery of the goods to OmniSource’s location, Donaldson arranged for the destination of the conveyor to be the OmniSource location in Fort Wayne, Indiana.

48. Donaldson is a manufacturer of dust collectors, and from time to time it has purchased conveyors from NCI to be used with Donaldson’s dust collectors.

49. NCI’s business records indicate that in the ten years 2002 to the present, NCI products have been shipped to Indiana only six times. Five of these shipments were made for Donaldson, and all such shipments were “F.O.B. Cleburne, Texas.” One of these shipments was the shipment which Donaldson directed to OmniSource in Fort Wayne, Indiana. In all five cases, Donaldson chose the carrier, and Donaldson paid all freight charges .…

50. In addition, one of the six shipments was to the Romweber Company, located in Batesville, Indiana. This shipment was also F.O.B. Cleburne, Texas, and Romweber paid all freight charges .…

51. The total revenue NCI derived from the conveyor Donaldson had NCI direct to Indiana in March 2005 was $10,286.00. Adding in the replacement parts shipped to Indiana for Donaldson over the past ten years and the Romweber shipment, NCI’s total revenue from all products shipped to Indiana, including the March 2005 conveyor, over ten years was $20,427.00. This represents only .003% of NCI’s total revenues over the past ten years.

52. NCI did not install or inspect the March 2005 conveyor at

1 “F.O.B.” stands for “free on board.” The meaning and import of this term is explained in more detail in the “Discussion and Decision” section of this opinion, infra.

4 OmniSource and no employee, representative, or agent of NCI performed any work on the conveyor after it was delivered to Donaldson’s carrier on March 22, 2005. NCI has never had any contact with OmniSource or the Plaintiff in this case, Mr. Sebring.

Id. at 74-75.

On October 8, 2012, the trial court granted NCI’s motion to dismiss. Sebring appeals

from this order.

Discussion and Decision

Personal jurisdiction is a question of law. LinkAmerica Corp. v. Albert, 857 N.E.2d

961, 965 (Ind. 2006). Therefore, our review is de novo, and we do not defer to the trial

court’s legal conclusion as to whether personal jurisdiction exists. Id. However, to the

extent that the issue of personal jurisdiction turns on disputed facts, the trial court’s findings

of fact are reviewed for clear error. Id.

Indiana Trial Rule 4.4(A) serves as Indiana’s long-arm jurisdiction provision. Id.

This provision extends to the limits of the United States Constitution; therefore, analysis of

personal jurisdiction is reduced “to the issue of whether the exercise of personal jurisdiction

is consistent with the Federal Due Process Clause.” Id. at 967.

The Due Process Clause of the Fourteenth Amendment requires that before a state may exercise jurisdiction over a defendant, the defendant must have “certain minimum contacts with [the state] such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’” Int’l Shoe Co. v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Milliken v. Meyer
311 U.S. 457 (Supreme Court, 1941)
International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
McGee v. International Life Insurance
355 U.S. 220 (Supreme Court, 1957)
Shaffer v. Heitner
433 U.S. 186 (Supreme Court, 1977)
World-Wide Volkswagen Corp. v. Woodson
444 U.S. 286 (Supreme Court, 1980)
Keeton v. Hustler Magazine, Inc.
465 U.S. 770 (Supreme Court, 1984)
Helicopteros Nacionales De Colombia, S. A. v. Hall
466 U.S. 408 (Supreme Court, 1984)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
J. McIntyre Machinery, Ltd. v. Nicastro
131 S. Ct. 2780 (Supreme Court, 2011)
LinkAmerica Corp. v. Albert
857 N.E.2d 961 (Indiana Supreme Court, 2006)
Anthem Ins. Companies v. Tenet Healthcare Corp.
730 N.E.2d 1227 (Indiana Supreme Court, 2000)
Weenig v. Wood
349 N.E.2d 235 (Indiana Court of Appeals, 1976)
North Texas Steel Co. v. R.R. Donnelley & Sons Co.
679 N.E.2d 513 (Indiana Court of Appeals, 1997)
Nicastro v. McIntyre MacHinery America, Ltd.
987 A.2d 575 (Supreme Court of New Jersey, 2010)
Foley v. Schwartz
943 N.E.2d 371 (Indiana Court of Appeals, 2011)
Marks v. United States
430 U.S. 188 (Supreme Court, 1977)

Cite This Page — Counsel Stack

Bluebook (online)
John v. Sebring v. Air Equipment and Engineering, Inc., Donaldson Co., Inc., William W. Meyer and Sons, Inc., Newton Conveyors, Inc. and Emerson Power Transmission Corp., Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-v-sebring-v-air-equipment-and-engineering-inc-donaldson-co-indctapp-2013.