Mississippi Interstate Express, Inc. v. Transpo, Inc., Azcal, Inc. And Robert Zoller

681 F.2d 1003, 1982 U.S. App. LEXIS 16808
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 5, 1982
Docket80-3808
StatusPublished
Cited by116 cases

This text of 681 F.2d 1003 (Mississippi Interstate Express, Inc. v. Transpo, Inc., Azcal, Inc. And Robert Zoller) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mississippi Interstate Express, Inc. v. Transpo, Inc., Azcal, Inc. And Robert Zoller, 681 F.2d 1003, 1982 U.S. App. LEXIS 16808 (5th Cir. 1982).

Opinion

TATE, Circuit Judge:

In this diversity action, the plaintiff (Mississippi Interstate), a Mississippi corporation, sues in Mississippi district court two California corporations (Transpo and Azcal) and an individual (Zoller), all residents of California, basing personal jurisdiction upon the Mississippi long-arm statute, Miss.Code Ann. § 13-3-57 (1972). Mississippi Inter *1005 state sues to recover some thirty-five thousand dollars for its unpaid invoices, and it also alleges that the three defendants conspired to cheat and defraud it of these amounts due and seek putative damages in tort. The district court granted the defendants’ motions to dismiss the suit for lack of personal jurisdiction, concluding that Fourteenth Amendment due process barred Mississippi’s exercise of personal jurisdiction over these California defendants. Reaching a contrary conclusion, we reverse.

The due process issue as to personal jurisdiction concerns whether the California defendants had sufficient minimum non-fortuitous contacts with the forum state (Mississippi) that the maintenance of this suit does not offend traditional notions of fair play and substantial justice, including in the latter aspect whether the defendant Trans-po had purposefully availed itself of the privilege of conducting activities within Mississippi.

Mississippi Interstate’s complaint states causes of action against Transpo for breach of contract and against all three defendants in tort. We will first discuss the contract action and, in Part IV below, the tort alleged.

Factual Context

This suit arises out of the following factual context:

A representative of Mississippi Interstate, a trucking firm, contacted Transpo, a freight broker, at the latter’s office in Bakersfield, California. This discussion led to an oral agreement by which Mississippi Interstate would supply trucks to move goods for Transpo on an open account basis. Pursuant to this agreement, on nineteen separate occasions during the following two months, Transpo telephoned Mississippi Interstate at its headquarters and sole business office in Mississippi, to order the latter’s services in shipping goods from one destination to another. On none of the nineteen shipments was the point of origin or point of destination in Mississippi, although some of the shipments did travel through Mississippi, either because of routing or of truck servicing or maintenance. None of the thirty-five thousand dollars invoiced for the nineteen shipments, payable at the plaintiff’s Mississippi headquarters, were ever paid.

All of Mississippi Interstate’s trucks were garaged and serviced at the Mississippi headquarters and regularly returned there. While there was no specific prior discussion as to this point, the general agreement reasonably contemplated payment to Mississippi Interstate at its Mississippi headquarters and sole establishment, as in fact the nineteen invoices specifically directed. In performing its obligations to Transpo under the contracts), Mississippi Interstate from its Mississippi office telephoned instructions and directions to its drivers in accordance with the shipping instructions of Transpo (as well as from there wired salaries and expenses to these drivers).

In urging lack of Mississippi contact, the defendants point out: 1) the initial contract discussions were in California; 2) the defendants are all residents of California, and did no act inside Mississippi (Transpo’s telephone calls to Mississippi Interstate there being contended to be the only possible Mississippi contact); 3) all shipments originated and terminated in states other than Mississippi; 4) the defendants have no office or place of business in Mississippi, nor have they ever sent representatives there; 5) they solicited no business in Mississippi and had no local advertising or bank accounts there; and 6) with regard to the tort alleged, all acts of the alleged conspirators occurred outside of Mississippi.

The only substantial issue on this appeal is whether the district court erred in granting the California defendants’ motion to dismiss on the basis that retaining jurisdiction in Mississippi would offend these defendants’ rights to due process. 1 It is clear *1006 that Transpo’s contact with the State of Mississippi was somewhat minimal, consisting primarily of entering into a contract with a Mississippi corporation and engaging that corporation to deliver certain shipments between states other than Mississippi. This court must now determine whether this contractual relationship with a Mississippi corporation, and the activities conducted pursuant thereto, satisfied the minimum contacts with, purposeful activity in, Mississippi required by due process in order for Mississippi to exercise personal jurisdiction over these California defendants.

I

The due process contours on the exercise by a forum of personal jurisdiction over a non-resident are established by the following United States Supreme Court decisions: World-Wide Volkswagen Corporation v. Woodson, 444 U.S. 286, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980); Kulko v. Superior Court of California, 436 U.S. 84, 98 S.Ct. 1690, 56 L.Ed.2d 132 (1978); Hanson v. Denckla, 357 U.S. 235, 78 S.Ct. 1228, 2 L.Ed.2d 1283 (1958); McGee v. International Life Insurance Co., 355 U.S. 220, 78 S.Ct. 199, 2 L.Ed.2d 223 (1957); International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945).

As deduced from these decisions, the determination of whether personal jurisdiction exists is resolved by considering the following criteria: 1) did the defendant have sufficient minimum contacts with the forum state so that it is fair and reasonable to require the defendant to come into the state and defend the suit?; 2) did the defendant purposefully avail itself of the privilege of conducting activities within the forum state, thus invoking the benefits and protections of its laws? (This latter criteria also includes the consideration of whether the defendant’s conduct in connection with the forum state was such that he might reasonably foresee being haled into court there.)

As these decisions also indicate, however, if the non-resident defendant’s contacts with the jurisdiction were fortuitous, not deliberate, de minimis, not substantial, they do not give rise to personal jurisdiction in that forum. Further, whether the minimum contacts are sufficient to justify subjection of the non-resident to suit in the forum is determined not on a mechanical and quantitative test, but rather under the particular facts upon the quality and nature of the activity with relation to the forum state.

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Bluebook (online)
681 F.2d 1003, 1982 U.S. App. LEXIS 16808, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mississippi-interstate-express-inc-v-transpo-inc-azcal-inc-and-ca5-1982.