McKesson Corp. v. Hackensack Medical Imaging

962 A.2d 1076, 197 N.J. 262, 2009 N.J. LEXIS 2
CourtSupreme Court of New Jersey
DecidedJanuary 21, 2009
StatusPublished
Cited by18 cases

This text of 962 A.2d 1076 (McKesson Corp. v. Hackensack Medical Imaging) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McKesson Corp. v. Hackensack Medical Imaging, 962 A.2d 1076, 197 N.J. 262, 2009 N.J. LEXIS 2 (N.J. 2009).

Opinion

Justice RIVERA-SOTO

delivered the opinion of the Court.

This appeal involves the commonplace conflict that arises when a sister state, in the exercise of its long-arm jurisdiction, enters a default judgment against a citizen of this State, and the judgment holder seeks to enforce that default judgment in our courts. The trial court determined that the sister state had proper long-arm jurisdiction over the New Jersey defendant and, therefore, the sister state’s judgment was entitled to full faith and credit in New Jersey. The Appellate Division, however, reversed, concluding that the transactions between the New Jersey defendant and the *267 foreign jurisdiction were insufficient to satisfy the minimum contacts constitutionally required for the exercise of long-arm jurisdiction.

We conclude that, on the whole, the contacts presented in this ease between the New Jersey defendant and the sister state that issued the foreign judgment were sufficient to meet the minimum contacts test necessary for the constitutional exercise of judicial power against a non-resident defendant. We therefore reverse the judgment of the Appellate Division and reinstate the judgment of the Law Division enforcing the foreign judgment and dismissing the challenge to that judgment.

I.

Plaintiff McKesson Corp. advertises that it “[i]s the largest pharmaceutical distributor in North America” and “the nation’s leading health care [information technology] company[.]” See http://www.mckesson.com/en_us/McKesson.com/About%2BUs/ Our% 2BCompany/Our% 2BCompany.html. It operates through various locations in the United States, including in the State of Texas.

In contrast, defendant Hackensack Medical Imaging, d/b/a Li-fescan Diagnostic Imaging, is a professional corporation organized under the laws of the State of New Jersey and maintains its principal place of business in Hackensack. It is engaged in the business of providing radiology and imaging services — X-rays, MRIs, CAT Scans and other diagnostic procedures — to various patients and physicians exclusively at its principal place of business.

Starting in July 2005, and on nine separate occasions, defendant ordered from plaintiff two different types of contrast agents for use in defendant’s imaging practice. 1 Those orders were placed *268 by plaintiff with defendant’s distribution operations in Texas and consisted of the following:

ORDER DATE ITEM AMOUNT
July 19, 2005_Ultravist®_$ 460
Aug. 16, 2005_Magnevist®_$4,900
Oct. 7, 2005_Ultravist®_$1,115
Oct. 20,2005_Magnevist®_$4,900
Nov. 16, 2005_Ultravist®_$ 690
Dec. 2, 2005_Magnevist®_$2,450
Jan. 5, 2006_Magnevist®_$4,900
Jan. 6, 2006_Ultravist®_$ 690
Feb. 6, 2006_Ultravist®_$ 690

These purchases totaled $20,795 2 and, in order to make them, defendant placed its orders, either via the telephone or through other electronic media, with plaintiff in Texas. Further, each invoice specifically provided that payment was to be made to *269 plaintiff in Texas. Also, on December 6, 2005, after defendant had placed six of its total nine orders, defendant completed — and submitted to plaintiff again in Texas — a form of credit application. Finally, on February 15, 2006, defendant issued two sequentially numbered checks, each in the amount of $2,450, made payable to plaintiff, and mailed those checks to Texas. Both checks were drawn on accounts that did not contain enough funds to cover the checks written; they were marked “non-sufficient funds,” dishonored, and returned unpaid.

On March 31, 2006, plaintiff filed an action on an account against defendant in the District Court of Dallas County, Texas. See, generally, James H. Walzer, 3B New Jersey Practice § 19.1 at 282-84 (6th ed. 2006) (defining “action on account” and “action on account stated”). Although service of process was effected on defendant in New Jersey, defendant did not appear in the Texas court. Instead, on May 22, 2006, defendant’s counsel wrote to the Clerk of the District Court of Dallas County, Texas, asserting that “[i]n light of the fact that [defendant] does not conduct business in the State of Texas and is not subject to the jurisdiction of the Texas Courts[,] it is respectfully requested that this case be dismissed for lack of jurisdiction.” In defendant’s view, “[i]f [plaintiff] wishes to sue this [d]efendant[,] the law suit must be brought within the State of New Jersey by attorneys licensed to practice within our State.” Defendant never formally moved for the relief it requested by letter.

At plaintiffs request, on August 31, 2006, the Texas court entered a default judgment in plaintiffs favor and against defendant. It ruled that “[defendant, though duly, legally and regularly cited to appear and answer herein according to law, failed to appear herein and wholly made default.”

On October 10, 2006, plaintiff moved in the Law Division for registration of its Texas judgment pursuant to the Uniform Enforcement of Foreign Judgments Act, N.J.S.A. 2A:49A-25 to -33. In its application, plaintiff represented that “[t]he time to appeal the foreign judgment has not expired and the court of origin has *270 not granted a stay of execution.” See N.J.S.A. 2A:49A-28(a) (setting forth requirements of movant’s affidavit). It also represented that “[t]he expiration under the rules of court of origin for moving to vacate the judgment is 30 days from entry of the judgment” and that “[n]o motion to vacate the judgment has been filed.” It therefore sought entry of judgment in New Jersey in the amount of $26,062.35, which included the principal amount of the foreign judgment, plus awarded attorneys’ fees and post-judgment interest. As required, the Clerk of the Superior Court issued a notice to defendant. N.J.S.A. 2A:49A-28(b).

Upon receipt of that notice, defendant moved in the Law Division for an order staying enforcement of the foreign judgment. See N.J.S.A. 2A:49A-29(b) (providing that, “[i]f the judgment debtor shows the Superior Court any ground upon which enforcement of a judgment of the Superior Court would be stayed, the Superior Court shall stay enforcement of the foreign judgment for an appropriate period, upon requiring the same security for satisfaction of the judgment which is required in this State”).

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Cite This Page — Counsel Stack

Bluebook (online)
962 A.2d 1076, 197 N.J. 262, 2009 N.J. LEXIS 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckesson-corp-v-hackensack-medical-imaging-nj-2009.