ORDER ON DEFENDANTS’ MOTION TO DISMISS AND QUASH SERVICE OF PROCESS
HEMPHILL, District Judge.
These are diversity actions based on negligence and initiated by the filing of Com
plaints with 'the Clerk of Court’s Office on December 1, 1976 and service of the same on defendants at their residence in Florissant, Missouri, on December 12, 1976. Plaintiff, Vickie B. Nelepovitz,/Claims that on July 25,1975 within the premises located-in Missouri and owned by defendants, the latter negligently allowed their dog to trip plaintiff, causing her to fall down a flight of stairs, and severely and permanently injuring her. Plaintiff, Carl Nelepovitz, claims loss of consortium as a result. Now before the court is defendants’ motion to dismiss and to quash service of process on the grounds that defendants are not subject to the personal jurisdiction of the court and have not been properly served with process.
For reasons hereinafter set forth defendants’ motion is granted.
Defendants allege that the incident giving rise to the cause of action occurred in defendant’s home near St. Louis, Missouri and that they have no business contact with the State. Plaintiffs counter by pointing out that defendant, Earl W. Boatwright is a limited partner in a South Carolina partnership and that defendant, Lois A. Boat-wright, owns real property in South Carolina, has mortgaged said property, and is presently making monthly payments on the same. These contacts, plaintiffs contend, establish a sufficient nexus with the State of South Carolina to subject defendants to this court’s personal jurisdiction. This court disagrees.
A federal court presented with a challenge to its personal jurisdiction over an out-of-state defendant must determine whether there is statutory authority for the exercise of its jurisdiction under the laws of the State in which it sits and whether the statute that confers jurisdiction meets constitutional standards of due process.
Hardy v. Pioneer Parachute Company, Inc.,
531 F.2d 193 (4th Cir. 1976). The statutory authority for exercise of personal jurisdiction over an out-of-state defendant is found under the “long-arm” statutes of South Carolina.
The “long-arm” statutes of South Carolina have consistently been held to grant jurisdiction commensurate with the broadest limits of jurisdiction- constitutionally permissible.
Carolina Boat & Plastic Co. v. Glascoat Distributors, Inc.,
249 S.C. 49, 152 S.E.2d 352 (1967);
Ratliff v. Cooper Laboratories, Inc.,
444 F.2d 745 (4th Cir. 1971);
Hardy v. Pioneer Parachute Co.,
Inc.,
531 F.2d 193 (4th Cir. 1976);
David v. National Lampoon,
432 F.Supp. 1097 (D.S.C.1977). The Due Process Clause of the United States Constitution requires that “in order to subject a defendant to a judgment in personam, if he not be present within the territory of the forum, [that] 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.’ ”
International Shoe Co.
v.
Washington,
326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95, 102 (1945).
Section 803 of the statute provides for jurisdiction over the person of an out-of-state defendant if his contact (conduct
) with the state in the very thing which gives rise to the cause of action sought to be adjudicated in South Carolina and if the particular contact (conduct) is included in that section.
If the contact with the State in fact gives rise to the putative cause of action, a single contact (or transaction) within the State is sufficient to subject the defendant to personal jurisdiction and to meet the
International Shoe
standard.
McGee v. International Life Insurance Co.,
355 U.S. 220, 78 S.Ct. 199, 2 L.Ed.2d 223 (1957). The section is not applicable here in that defendants’ contacts with the State of South Carolina (limited partner, real estate) did not give rise to the cause of action.
As such in order for plaintiffs to establish personal jurisdiction over the out-of-state defendants, the cause of action must be maintainable under Section 802. That is, defendants’ relationship (contacts) with South Carolina must be of such an enduring nature as to allow maintenance of a suit in the State for a cause of action which arose from activity outside of the State.
The statute confers jurisdiction upon the court commensurate with the due process clause,
supra.
Consistent with that proposition if, “plaintiffs’ injury does not arise out of something done in the forum State, then other contacts between [Defendant] and the State must be
fairly extensive
before the burden of defending a suit there may be imposed upon it without offending ‘traditional notions of fair play and substantial justice’.” (citations omitted).
Ratliff, supra
at page 748.
Ratliff
dealt with two corporate defendants (drug companies) one of which had filed and been given authority to do business in the State, had appointed an agent for service of process, and maintained “detailmen” who lived in South Carolina and promoted defendants’ products through personal contacts with doctors and drug stores throughout the State. The Fourth Circuit held that such contacts were insufficient to subject defendants to a suit in South Carolina for a cause of action which arose outside of the State. The contacts here (E. W. Boat-wright’s status as a limited partner and Lois Boatwright’s ownership of mortgaged real estate in the State) are both qualitatively and quantitatively inferior to the defendants’ contacts in
Ratliff.
Particularly illuminating in this area of out-of-state defendants coupled with out-of-state causes of action is the recent United States Supreme Court case of
Shaffer v. Heitner,
433 U.S. 186, 97 S.Ct. 2569, 53 L.Ed.2d 683 (1977). There the Supreme Court held that to comply with the due process clause all assertions of State Court jurisdiction, including
in rem
and
quasi-in-rem
actions, must meet the minimum contacts standard of
International Shoe
Shaffer
dealt with a derivative action in
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ORDER ON DEFENDANTS’ MOTION TO DISMISS AND QUASH SERVICE OF PROCESS
HEMPHILL, District Judge.
These are diversity actions based on negligence and initiated by the filing of Com
plaints with 'the Clerk of Court’s Office on December 1, 1976 and service of the same on defendants at their residence in Florissant, Missouri, on December 12, 1976. Plaintiff, Vickie B. Nelepovitz,/Claims that on July 25,1975 within the premises located-in Missouri and owned by defendants, the latter negligently allowed their dog to trip plaintiff, causing her to fall down a flight of stairs, and severely and permanently injuring her. Plaintiff, Carl Nelepovitz, claims loss of consortium as a result. Now before the court is defendants’ motion to dismiss and to quash service of process on the grounds that defendants are not subject to the personal jurisdiction of the court and have not been properly served with process.
For reasons hereinafter set forth defendants’ motion is granted.
Defendants allege that the incident giving rise to the cause of action occurred in defendant’s home near St. Louis, Missouri and that they have no business contact with the State. Plaintiffs counter by pointing out that defendant, Earl W. Boatwright is a limited partner in a South Carolina partnership and that defendant, Lois A. Boat-wright, owns real property in South Carolina, has mortgaged said property, and is presently making monthly payments on the same. These contacts, plaintiffs contend, establish a sufficient nexus with the State of South Carolina to subject defendants to this court’s personal jurisdiction. This court disagrees.
A federal court presented with a challenge to its personal jurisdiction over an out-of-state defendant must determine whether there is statutory authority for the exercise of its jurisdiction under the laws of the State in which it sits and whether the statute that confers jurisdiction meets constitutional standards of due process.
Hardy v. Pioneer Parachute Company, Inc.,
531 F.2d 193 (4th Cir. 1976). The statutory authority for exercise of personal jurisdiction over an out-of-state defendant is found under the “long-arm” statutes of South Carolina.
The “long-arm” statutes of South Carolina have consistently been held to grant jurisdiction commensurate with the broadest limits of jurisdiction- constitutionally permissible.
Carolina Boat & Plastic Co. v. Glascoat Distributors, Inc.,
249 S.C. 49, 152 S.E.2d 352 (1967);
Ratliff v. Cooper Laboratories, Inc.,
444 F.2d 745 (4th Cir. 1971);
Hardy v. Pioneer Parachute Co.,
Inc.,
531 F.2d 193 (4th Cir. 1976);
David v. National Lampoon,
432 F.Supp. 1097 (D.S.C.1977). The Due Process Clause of the United States Constitution requires that “in order to subject a defendant to a judgment in personam, if he not be present within the territory of the forum, [that] 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.’ ”
International Shoe Co.
v.
Washington,
326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95, 102 (1945).
Section 803 of the statute provides for jurisdiction over the person of an out-of-state defendant if his contact (conduct
) with the state in the very thing which gives rise to the cause of action sought to be adjudicated in South Carolina and if the particular contact (conduct) is included in that section.
If the contact with the State in fact gives rise to the putative cause of action, a single contact (or transaction) within the State is sufficient to subject the defendant to personal jurisdiction and to meet the
International Shoe
standard.
McGee v. International Life Insurance Co.,
355 U.S. 220, 78 S.Ct. 199, 2 L.Ed.2d 223 (1957). The section is not applicable here in that defendants’ contacts with the State of South Carolina (limited partner, real estate) did not give rise to the cause of action.
As such in order for plaintiffs to establish personal jurisdiction over the out-of-state defendants, the cause of action must be maintainable under Section 802. That is, defendants’ relationship (contacts) with South Carolina must be of such an enduring nature as to allow maintenance of a suit in the State for a cause of action which arose from activity outside of the State.
The statute confers jurisdiction upon the court commensurate with the due process clause,
supra.
Consistent with that proposition if, “plaintiffs’ injury does not arise out of something done in the forum State, then other contacts between [Defendant] and the State must be
fairly extensive
before the burden of defending a suit there may be imposed upon it without offending ‘traditional notions of fair play and substantial justice’.” (citations omitted).
Ratliff, supra
at page 748.
Ratliff
dealt with two corporate defendants (drug companies) one of which had filed and been given authority to do business in the State, had appointed an agent for service of process, and maintained “detailmen” who lived in South Carolina and promoted defendants’ products through personal contacts with doctors and drug stores throughout the State. The Fourth Circuit held that such contacts were insufficient to subject defendants to a suit in South Carolina for a cause of action which arose outside of the State. The contacts here (E. W. Boat-wright’s status as a limited partner and Lois Boatwright’s ownership of mortgaged real estate in the State) are both qualitatively and quantitatively inferior to the defendants’ contacts in
Ratliff.
Particularly illuminating in this area of out-of-state defendants coupled with out-of-state causes of action is the recent United States Supreme Court case of
Shaffer v. Heitner,
433 U.S. 186, 97 S.Ct. 2569, 53 L.Ed.2d 683 (1977). There the Supreme Court held that to comply with the due process clause all assertions of State Court jurisdiction, including
in rem
and
quasi-in-rem
actions, must meet the minimum contacts standard of
International Shoe
Shaffer
dealt with a derivative action in
Delaware naming as defendants, a corporation, its wholly'owned subsidiary, and numerous present and former officers of the corporation. The State Court in Delaware sought to invoke
quasi-in-rem
jurisdiction over the
out-of-state
individual defendants (officers) by sequestering their stock, options, warrants and various other corporate rights of the defendants located in Delaware. The Court responded, 433 U.S. at page 213, 97 S.Ct. at page 2585, 53 L.Ed.2d at page 703:
The Delaware courts based their assertion of jurisdiction in this ease solely on the statutory presence of appellants’ property in Delaware. Yet that property is not the subject matter of this litigation, nor is the underlying cause of action related to the property. • Appellants’ holdings in Greyhound do not, therefore, provide contacts with Delaware sufficient to support the jurisdiction of that State’s courts over appellants.
The Court then searched for other contacts of the defendants with Delaware which would establish the contacts necessary to support jurisdiction and stated 433 U.S. at 213, 97 S.Ct. at 2585, 53 L.Ed.2d at 703-04:
If it [jurisdiction] exists, that jurisdiction must have some other foundation, [and]
Appellee Heitner did not allege and does not now claim that appellants have ever set foot in Delaware. Nor does he identify any act related to his cause of action as having taken place in Delaware. Nevertheless, he contends that appellants’ positions as directors and officers of a corporation chartered in Delaware provide sufficient “contacts, ties, or relations,” (citations omitted) with that State to give its courts jurisdiction over appellants in this stockholder’s derivative action. This argument is based primarily on what Heitner asserts to be the strong interest of Delaware in supervising the management of a Delaware corporation. That interest is said to derive from the role of Delaware law in establishing the corporation and defining the obligations owed to it by its officers and directors. In order to protect this interest, appellee concludes, Delaware’s courts must have jurisdiction over corporate fiduciaries such as appellants.
The court rejected Heitner’s argument, even though the defendants had some control over the corporation.
Here E. W. Boatwright’s contact with the State is his status as a limited partner in a South Carolina partnership. A limited partner’s interest in the partnership is classified as personal property.
A limited partner has a position analogous to a corporate shareholder.
A limited partner has no right to take part in the control of the business without losing his status as a limited partner.
As such E. W. Boat-wright’s contact with South Carolina is little more than a property right which exists in South Carolina. Although the court assumes E. W. Boatwright derives income from the partnership, so too does a shareholder from his stock certificates. Here Lois Boatwright’s contact with the State is a mortgaged piece of real estate. As such her contact with the State is simply a property interest herein. The two defendants therefore have insufficient contacts with the State of South Carolina to support jurisdiction over them for a cause of action arising outside the State and unrelated to their contacts in the State.
In light of the above, it is this court’s determination that defendants lack sufficient contacts with this State to subject them to the jurisdiction of this court, and to do so would place a burden upon them at odds with “traditional notions of fair play and substantial justice.” The decision of this court is that the service of process should be set aside and the actions dismissed.
The motion to dismiss is granted.
AND IT IS SO ORDERED.