McGee v. Holan Division of Ohio Brass Company

337 F. Supp. 72, 1972 U.S. Dist. LEXIS 15642
CourtDistrict Court, D. South Carolina
DecidedJanuary 10, 1972
DocketCiv. A. 71-396
StatusPublished
Cited by5 cases

This text of 337 F. Supp. 72 (McGee v. Holan Division of Ohio Brass Company) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McGee v. Holan Division of Ohio Brass Company, 337 F. Supp. 72, 1972 U.S. Dist. LEXIS 15642 (D.S.C. 1972).

Opinion

ORDER

CHAPMAN, District Judge.

This matter is before the Court upon motion of the defendant to dismiss the action because of lack of jurisdiction over the person of the defendant corporation and to quash service of the summons and complaint.

The action is brought for personal injuries sustained on August 3, 1970, when an aerial hydraulic bucket fell to the ground while plaintiff was working as an electrical lineman for Sumter Builders, Inc. These buckets, sometimes called “cherry pickers”, are operated from a truck and attached to a long arm or boom. The equipment in question had been purchased by Sumter Builders, Inc. from the defendant at its Griffin, Georgia, plant in 1962, and during 1963 had been sent from Florida to Cleveland, Ohio, for replacement of the boom.

The plaintiff alleges serious personal injuries and sets forth a cause of action against the defendant on breach of warranty and also a separate cause for negligent design and manufacture, inadequate testing and failure to warn.

The plaintiff obtained service of the summons and complaint upon the .defendant at its plant in Griffin, Georgia. The service thereof was ordered by this Court in response to a motion of plaintiff’s attorney since the U. S. Marshal for the District of South Carolina had been unable to locate the defendant in this district. There is no question that the service was made pursuant to Rule 4(e) F.R.C.P., so the question before the Court is whether this Court may legally exercise jurisdiction over the defendant.

Prior to International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945) it had been thought to subject a foreign corporation to jurisdiction in the state, it must either be “present” within the jurisdiction, or in some, way to have given its consent, expressed or implied, to service within the *74 state. International Shoe changed this by stating:

“Due process requires only that in order to subject a defendant to a judgment in personam, if he be not present within the territory of the forum, he have certain minimum contacts with it such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice’ ”.

What actions by a corporation within the territory of the forum will subject it to jurisdiction, and not be against traditional notions of fair play and substantial justice, is a question of fact for the Court.

In the present action the purchase of defendant’s equipment was from its plant in Griffin, Georgia and not in South Carolina. Defendant is not domesticated in South Carolina and has not qualified to do business here. It does not maintain any office, agent or bank accounts in South Carolina and owns no property. The defendant is a corporation chartered and existing under the laws of the State of New Jersey and its principal place of business is in the State of Ohio. Affidavit of the president of Sumter Builders, Inc. indicates that defendant has a salesman representative who lives in Charlotte, North Carolina, and who makes approximately two trips per year to deponent’s place of business in South Carolina. However, this affidavit shows that any purchases made by Sumter Builders, Inc. come through Graybar Electric Company and not directly from defendant. Graybar is not shown to be owned by defendant or a subsidiary of defendant, but is a separate corporation which distributes electrical equipment. Deliveries of defendant’s equipment to South Carolina are not made in defendant’s trucks or vehicles.

The plaintiff relies heavily upon the decision of Judge Haynsworth in Shealy v. Challenger Manufacturing Co., 4 Cir., 304 F.2d 102 (1962), but it is obvious from the examination of that decision that it is based primarily on the numerous deliveries of Challenger’s products into South Carolina in trucks owned and operated by said manufacturer.

South Carolina has adopted a very broad contacts theory of jurisdiction. Carolina Boat and Plastics Co. v. Glascoat Distributors, Inc., 249 S.C. 49, 152 S.E.2d 352 (1967), Boney v. Trans-State Dredging Co., 237 S.C. 54, 115 S.E.2d 508 (1960). However, these decisions still provide that maintenance of an action in personam against a nonresident shall not “offend the traditional notions of fair play and substantial justice”, which is the test applied in International Shoe.

The Court finds that the contacts of the defendant in the present ease are so minimal that to require it to stand and defend this case in this district would be offensive to traditional notions of fair play and substantial justice.

The plaintiff also contends that the Court has jurisdiction of the defendant under the “long arm statute” provisions of the South Carolina Uniform Commercial Code, Section 10.2-803(1) (c) and (d), which provide as follows:

“10.2-803 Personal jurisdiction based upon conduct.
(1) A court may exercise personal jurisdiction over a person who acts directly or by an agent as to a cause of action arising from the person’s
(c) commission of a tortious act in whole or in part in this State;
(d) causing tortious injury or death in this State by an act or omission outside this State if he regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered, in this State.”

This Court finds these provisions of South Carolina’s so called “Uniform Commercial Code” to be unconstitutional under Article III, Section 17, of *75 the Constitution of South Carolina, which requires “Every act or resolution having the force of law shall relate to but one subject, and that shall be expressed in the title.”

The South Carolina version of the Uniform Commercial Code was enacted as Act 1065, 54 Statutes at Large, p. 4027, 1966, and bore the following official title:

“An Act To Be Known As The Uniform Commercial Code, Relating to Certain Commercial Transactions In Or Regarding Personal Property And Contracts And Other Documents Concerning Them, Including Sales, Commercial Paper, Bank Deposits and Collections, Letters of Credit, Bulk Transfers, Warehouse Receipts, Bills of Lading, Other Documents of Title, Investment Securities, and Secured Transactions, Including Certain Sales of Accounts, Chattels Paper, And Contract Rights; Providing for Public Notice to Third Parties in Certain Circumstances; Regulating Procedure, Evidence And Damages In Certain Court Actions Involving Such Transactions, Contracts Or Documents; To Make Uniform The Law With Respect Thereto; and Repealing Inconsistent Legislation.”

It is obvious from a review of this title that no mention is made of tort claims for personal injuries.

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Related

Thompson v. Hofmann
210 S.E.2d 461 (Supreme Court of South Carolina, 1974)
Bass v. Harbor Light Marina, Inc.
372 F. Supp. 786 (D. South Carolina, 1974)
Superior Motors, Inc. v. Winnebago Industries, Inc.
359 F. Supp. 773 (D. South Carolina, 1973)
Segars v. Gomez
360 F. Supp. 50 (D. South Carolina, 1972)

Cite This Page — Counsel Stack

Bluebook (online)
337 F. Supp. 72, 1972 U.S. Dist. LEXIS 15642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgee-v-holan-division-of-ohio-brass-company-scd-1972.