Lefiti v. Ford Motor Co.

10 Am. Samoa 3d 117
CourtHigh Court of American Samoa
DecidedMay 11, 2005
DocketCA No. 90-04
StatusPublished

This text of 10 Am. Samoa 3d 117 (Lefiti v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering High Court of American Samoa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lefiti v. Ford Motor Co., 10 Am. Samoa 3d 117 (amsamoa 2005).

Opinion

[119]*119ORDER DENYING MOTION TO DISMISS FOR LACK OF JURISDICTION AND GRANTING MOTION TO QUASH ORDER FOR SERVICE BY PUBLICATION

Introduction

On November 5, 1999, Plaintiff Frank Lefiti (“Lefiti”), a resident of American Samoa, purchased a new 2000-year model Ford F-150 truck at a Ford dealership in Honolulu, Hawaii. Lefiti subsequently shipped the truck to American Samoa. On October 14, 2003, Lefiti observed that his truck, parked outside his house, was on fire. He later received an investigative report by the Department of Public safety purporting that the fire was the result of an electric malfunction in the truck’s engine compartment. On September 22,2004, Lefiti filed an action in this Court against Defendant Ford Motor Company (“Ford”), as well as several unidentified defendants for: (1) breach of implied warranty for fitness of use; (2) breach of implied warranty of fitness for particular purpose; (3) breach of implied warranty for merchantability; (4) negligence; (5) strict liability; and (6) “malfunction of vehicle.” On October 28, 2004, we granted leave to serve process on Ford outside of American Samoa by publication in accordance with A.S.C.A. §§ 43.0501-.0504. On December 23, 2004, Ford was personally served in Dearborn, Michigan, pursuant to A.S.C.A. § 43.0504.

On March 2, 2005, Ford specially appeared challenging this Court’s jurisdiction and its order granting service by publication by motion to dismiss under T.C.R.C.P. 12(c)(2) and (5). For the reasons below, we deny Ford’s motion to dismiss but grant its motion to quash the service by publication order.

Discussion

In order to show that personal jurisdiction exists over a defendant, the plaintiff must show that the long-arm statute of the territory confers jurisdiction, and that the exercise of personal jurisdiction over the nonresident accords with federal constitutional principles of due process. See, e.g., Lake v. Lake, 817 F.2d 1416, 1421 (9th Cir. 1987). In this case, Ford maintains that this Court’s jurisdiction over it fails to meet minimum due process requirements as well as sufficient contacts under the territorial long arm statute.

I. Due Process

Due process requires that a court may exercise personal jurisdiction over a nonresident defendant only so long as there exist “minimum contacts” between the defendant and the forum jurisdiction such that “maintenance [120]*120of the suit does not offend traditional notions of fair play and substantial justice.” Patau v. Rosendahl Corporation, 16 A.S.R.2d 96, 99 (Trial Div. 1990); Int'l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945); World-Wide Volkswagon, 444 U.S. 286, 291 (1980).

A court may exercise either general or specific jurisdiction over a nonresident defendant, depending on the nature of the defendant's contacts with the forum. Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414 nn. 8-9 (1984). If the nonresident defendant’s activities within the jurisdiction are “substantial” or “continuous and systematic,” there is a sufficient relationship between the defendant and the forum to support jurisdiction even if the cause of action is unrelated to the defendant’s forum activities. Perkins v. Benguet Consolidated Mining Co., 342 U.S. 437, 446-47 (1952); Wells Fargo & Co. v. Wells Fargo Express Co., 556 F.2d 413 (9th Cir. 1977).

If, however, the defendant’s activities are not so pervasive as to subject him to general jurisdiction, the issue whether jurisdiction will lie turns on whether the nature and quality of the defendant’s contacts in relation to the cause of action. In evaluating whether these minimal contacts warrant “specific jurisdiction” a court will examine whether: (1) the contacts relate to the plaintiffs cause of action or have given rise to it; (2) the contacts involve some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum, thus invoking the benefits and protections of its laws; and (3) the defendant's contacts with the forum must be such that the defendant should reasonably anticipate being haled into court there. Vermeulen v. Renault, 985 F.2d 1534, 1546 (11th Cir. 1993); Decker Coal Co. v. Commonwealth Edison Co., 805 F.2d 834, 839 (9th Cir.1986); see also Burger King Corp. v. Rudzewicz, 471 U.S. 462, 474-75 (1985); World-Wide Volkswagen, 444 U.S. at 297; Hanson v. Denckla, 357 U.S. 235, 253 (1958).

In this case, Lefiti did not purchase the Ford truck in American Samoa, but rather purchased it in Hawaii, and separately brought it to American Samoa. Because Ford’s contacts with the territory are not related to Lefiti’s cause of action, jurisdiction over Ford must arise from Ford’s general, more persistent, but unrelated contacts with American Samoa. Were Ford’s only contact with the forum to have been linked to Lefiti’s own unilateral activity of shipping his Ford truck into the territory, we would find the quality and nature of Ford’s contact to be "so ... random, fortuitous, [and] attenuated that it cannot fairly be said that [Ford] should reasonably anticipate being haled into court” in American Samoa. Burger King, 471 U.S. at 486. Here, however, Ford’s own business contacts with American Samoa are substantially and purposefully directed to the territory such that it is not unreasonable to require Ford to [121]*121submit to the burdens of litigation in the territorial forum.

Ford argues that the Court does not have jurisdiction over it as Ford is neither a citizen nor resident of the territory, is not organized or does not have its principal place of business in the territoiy, or has not otherwise availed itself of the privileges of the American Samoan forum. We disagree. In Guyton v. A.M. General, defendant, a car manufacturer, challenged the court’s personal jurisdiction over it stating that it maintained no ties to Pennsylvania because it did not maintain an office, own property, solicit business, or file tax returns in that state. 2001 WL 1623345 (E.D. Pa. 2001) at *2. The court reasoned, however, that because defendant sold vehicles to a dealership in the forum state, contacts were sufficient to warrant general jurisdiction. Id. at 3.

By its nature, the automobile industry requires a manufacturer to maintain contact with its dealerships. As such, continuous and systematic dealings take place between Defendant and its dealerships within the forum State. Therefore, sales by Defendant to its dealerships and subsequently, consumers in the forum State are dealings to be considered for purposes of jurisdiction. Defendant is hard pressed to show that its sales to its dealerships are not continuous and systematic. . . .

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Related

International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
Perkins v. Benguet Consolidated Mining Co.
342 U.S. 437 (Supreme Court, 1952)
Hanson v. Denckla
357 U.S. 235 (Supreme Court, 1958)
World-Wide Volkswagen Corp. v. Woodson
444 U.S. 286 (Supreme Court, 1980)
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)
Decker Coal Company v. Commonwealth Edison Company
805 F.2d 834 (Ninth Circuit, 1986)
Wells Fargo & Co. v. Wells Fargo Express Co.
556 F.2d 406 (Ninth Circuit, 1977)
Lake v. Lake
817 F.2d 1416 (Ninth Circuit, 1987)

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Bluebook (online)
10 Am. Samoa 3d 117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lefiti-v-ford-motor-co-amsamoa-2005.