MacKinnon v. St. Louis Southwestern Ry. Co.

518 So. 2d 89, 1987 Ala. LEXIS 4552, 1987 WL 1426
CourtSupreme Court of Alabama
DecidedOctober 2, 1987
Docket86-694
StatusPublished
Cited by9 cases

This text of 518 So. 2d 89 (MacKinnon v. St. Louis Southwestern Ry. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MacKinnon v. St. Louis Southwestern Ry. Co., 518 So. 2d 89, 1987 Ala. LEXIS 4552, 1987 WL 1426 (Ala. 1987).

Opinion

518 So.2d 89 (1987)

Ruth Langston MacKINNON
v.
ST. LOUIS SOUTHWESTERN RAILWAY CO.

86-694.

Supreme Court of Alabama.

October 2, 1987.
Rehearing Denied November 25, 1987.

*90 Robert S. Ramsey and Charles J. Fleming of Ramsey, Flynn & Middlebrooks, Mobile, for appellant.

Jerry A. McDowell and Walter T. Gilmer, Jr. of Hand, Arendall, Bedsole, Greaves & Johnston, Mobile, for appellee.

Walter R. Byars of Steiner, Crum & Baker, Montgomery, for amicus curiae CSX Transp., Inc.

MADDOX, Justice.

The sole issue presented in this appeal is whether St. Louis Southwestern Railway Company had sufficient minimum contacts with this state to authorize a circuit court in Mobile County to acquire in personam jurisdiction over it. The trial court determined that it did not have in personam jurisdiction and dismissed the case. We reverse and remand.

Ruth Langston MacKinnon filed this action in the Circuit Court of Mobile County against her employer, St. Louis Southwestern Railway Company ("St. Louis Southwestern"), under the Federal Employers Liability Act (FELA). MacKinnon alleged that she injured herself attempting to get out of her chair at St. Louis Southwestern's Shreveport, Louisiana, office where she was employed. St. Louis Southwestern filed a motion to dismiss, in which it claimed the Circuit Court of Mobile County *91 lacked personal jurisdiction over it and that venue was improper. After a hearing, the trial court granted the motion to dismiss, and entered an order stating that it granted the motion to dismiss because it found that it did not have personal jurisdiction over St. Louis Southwestern. MacKinnon appeals from that judgment.

St. Louis Southwestern incorporated under the laws of the state of Missouri and has its principal place of business in Tyler, Texas. St. Louis Southwestern is a wholly owned subsidiary of the Southern Pacific Transportation Company ("Southern Pacific"). Southern Pacific is incorporated under the laws of Delaware and has its principal place of business in San Francisco, California. St. Louis Southwestern is not qualified to do business in Alabama and has no statutory agent in Mobile.

St. Louis Southwestern does not own any railroad tracks, does not operate any trains in Alabama. Neither St. Louis Southwestern nor Southern Pacific had earnings, nor derived revenues, from any transportation business conducted in Alabama during 1983, 1984, 1985, or 1986. Southern Pacific leases an "off-line sales office" in Birmingham under the name Southern Pacific Transportation Company. The personnel of this office solicit freight business on behalf of St. Louis Southwestern and Southern Pacific. The sales personnel solicit the transportation of freight to be moved outside of Alabama through an interchange agreement with another railroad not related to St. Louis Southwestern or Southern Pacific. St. Louis Southwestern and Southern Pacific realizes revenue from this type of business once it is interchanged at some point outside of the state.

St. Louis Southwestern and Southern Pacific also have interchange trailer agreements with business entities for the interchange of trailers at points outside of this state. Under these agreements, a separate entity has the sole custody, control, and responsibility for an interchanged trailer. St. Louis Southwestern and Southern Pacific have no control over this separate entity.

All freight business solicited in Alabama is business that is interchanged to St. Louis Southwestern at some point outside of the state of Alabama. Freight is interchanged from another company, one totally unrelated to St. Louis Southwestern or Southern Pacific, and one over which St. Louis Southwestern and Southern Pacific have no control.

St. Louis Southwestern has not owned an interest in any property in Alabama in the past five years. It has not entered into any contract for the purchase or sale of merchandise within the state of Alabama during the past five years. It has not owned, leased, or otherwise maintained a warehouse or other storage facility or a truck and trailer storage, receiving, and shipping yard within the state of Alabama during the past five years. St. Louis Southwestern has not shipped any merchandise into or out of the state of Alabama on consignment during the past five years.

Because of these facts, St. Louis Southwestern contends that the trial court correctly concluded that it lacked in personam jurisdiction over St. Louis Southwestern. At first blush, it would appear the railroad is correct, but we conclude that the activities performed in Alabama do grant Alabama courts "in personam" jurisdiction over it.

A state's inquiry into the reasonableness of its exercise of jurisdiction over a nonresident foreign corporation must focus in each case on a qualitative analysis of the foreign corporation's contacts with the forum state. Shaffer v. Heitner, 433 U.S. 186, 97 S.Ct. 2569, 53 L.Ed.2d 683 (1977). In each case, personal jurisdiction "stands or falls on the unique facts of that case." Ex parte I.M.C., Inc., 485 So.2d 724, 725 (Ala.1986). Determining the full reach of jurisdiction necessitates weighing the facts of each case and precludes the use of "clear-cut jurisdictional rules" and "talismanic jurisdictional formulas." Burger King Corp. v. Rudzewicz, 471 U.S. 462, 485-86, 105 S.Ct. 2174, 2189-90, 85 L.Ed.2d 528 (1985).

Rule 4.2(a)(2), Ala.R.Civ.P., sets forth a single-step analysis for determining questions *92 of personal jurisdiction: whether the assertion of jurisdiction meets federal due process standards. Duke v. Young, 496 So.2d 37 (Ala.1986); Semo Aviation, Inc. v. Southeastern Airways Corp., 360 So.2d 936 (Ala.1978). Specifically, Rule 4.2(a)(2)(I), Ala.R.Civ.P., provides:

"(2) Sufficient Contacts. A person has sufficient contacts with the state when that person, acting directly or by agent, is or may be legally responsible as a consequence of that person's
"(I) otherwise having some minimum contacts with this state and, under the circumstances, it is fair and reasonable to require the person to come to this state to defend an action. The minimum contacts referred to in this subdivision (I) shall be deemed sufficient, notwithstanding a failure to satisfy the requirement of subdivisions (A)-(H) of this subsection (2), so long as the prosecution of the action against a person in this state is not inconsistent with the constitution of this State or the Constitution of the United States."

The due process clause of the Fourteenth Amendment limits the power of a state court to render a valid personal judgment against a nonresident defendant. Kulko v. Superior Court of California, 436 U.S. 84, 96 S.Ct. 1690, 56 L.Ed.2d 132 (1978).

The propriety of in personam jurisdiction is premised on the mandate that a nonresident defendant corporation have sufficient "minimum contacts" with this state. The judiciary has reiterated that, to satisfy due process, in order for a state to assert jurisdiction, a nonresident corporate defendant must have "certain minimum contacts with [the forum] such that the maintenance of the suit does not offend `traditional notions of fair play and substantial justice.'" Helicopteros Nacionales de Colombia, S.A. v.

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Bluebook (online)
518 So. 2d 89, 1987 Ala. LEXIS 4552, 1987 WL 1426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mackinnon-v-st-louis-southwestern-ry-co-ala-1987.