Parmenter v. Hyundai Motor Co.

4 Mass. L. Rptr. 137
CourtMassachusetts Superior Court
DecidedJune 19, 1995
DocketNo. 931591
StatusPublished

This text of 4 Mass. L. Rptr. 137 (Parmenter v. Hyundai Motor Co.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parmenter v. Hyundai Motor Co., 4 Mass. L. Rptr. 137 (Mass. Ct. App. 1995).

Opinion

Sosman, J.

The plaintiff brought this negligence action against the defendants. The defendant Hyundai Motor Company (HMC), a Korean corporation, now moves to dismiss on grounds of lack of personal jurisdiction and insufficiency of service of process. For the reasons set forth below, I allow the motion.

BACKGROUND

The plaintiff is a Massachusetts resident. He and his wife, Susan J. Parmenter (Susan), purchased their Hyundai automobile in Massachusetts from a Hyundai dealer. Susan was killed in Virginia when her vehicle collided with a pickup truck and her body “telescoped” under the shoulder harness of the seat belt on impact, breaking her neck.

DISCUSSION

I. PERSONAL JURISDICTION

To overcome HMC’s motion to dismiss, the plaintiff must demonstrate to the court: (1) that it may properly assert jurisdiction pursuant to Massachusetts’s “long arm” statute, G.L.c. 223A, §3; and (2) that HMC established certain “minimum contacts” within the Commonwealth such that the assertion of jurisdiction would not offend traditional notions of fair play and substantial justice. Connecticut National Bank v. Hoover Treated Wood Prods., 37 Mass.App.Ct. 231 (1994). Accord, Walsh v. National Seating Co., Inc., 411 F.Supp. 564, 568 (D.Mass. 1976), citing International Shoe Co. v. Washington, 326 U.S. 310, 316 (1945) (maintenance of suit must not offend traditional notions of fair play and substantial justice). In addition, “(g]reat care and reserve should be exercised when extending our notions of personal jurisdiction into the international field,” United States v. First National City Bank, 379 U.S. 378, 404 (1965) (Harlan, J., dissenting), as plaintiff seeks to do in this case.

A. GENERAL LAWS Chapter 223A, §3

Massachusetts’s “longarm” statute provides for personal jurisdiction over persons, acting directly or through an agent, for certain enumerated acts if those acts give rise to a cause of action in law or equity. G.L.c. 223A, §3. The statute states, in pertinent part:

[a]court may exercise personal jurisdiction over a person, who acts directly or by an agent, as to a cause of action in law or equity arising from the person’s
(a) transacting any business in this commonwealth;
(b) contracting to supply services or things in this commonwealth;
(c) causing tortious injury by an act or omission in this commonwealth;
(d) causing tortious injury in this commonwealth by an act or omission outside this commonwealth 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 commonwealth;. . .

Jurisdiction on the basis of “transacting business," G.L.c. 223, §3(a), will ordinary not lie if: (1) the defendant maintains no office, telephone listing, mailing address or bank account in Massachusetts; (2) neither owns, rents nor uses any property in the State; (3) is not qualified to conduct business in the State, solicits no business in Massachusetts and does not advertise in Massachusetts; (4) employs no individuals in the State; and (5) has never shipped or delivered any products to Massachusetts. See, e.g., Droukas v. Divers Training Academy, Inc., 375 Mass. 149, 154; Heins v. Wilhelm Loh Wetzlar Optical Machinery GmbH & Co. K.G., 26 Mass.App.Ct. 14, 1718, review denied, 402 Mass. 1105 (1988). See also, “Automatic" Sprinkler Corporation of America v. Seneca Foods Corporation, [138]*138361 Mass. 441, 44445 (1972); Buckeye Associates Limited v. Fila Sports, Inc., 616 F.Supp. 1484, 1492 (D.Mass. 1985); Accutest Corp. v. Accu Test Systems, Inc., 532 F.Supp. 416, 41920 (D.Mass. 1982).

In support of its motion, HMC has submitted the affidavit of Jong Hyok Kim stating that HMC does not transact business in Massachusetts, maintains no office, telephone listing, mailing address, or bank account in Massachusetts, neither owns, rents nor uses any property in Massachusetts, is not qualified or licensed to conduct business in Massachusetts, has no employees in Massachusetts, and has never shipped or delivered any products to Massachusetts.

On his part, the plaintiff contends that Hyundai Motor America (HMA) acts as an agent of HMC and therefore any alleged corporate separateness should be disregarded. Corporate separateness is disregarded when

there is a confused intermingling of activity of two or more corporations engaged in a common enterprise with substantial disregard of the separate nature of the corporate entities, or serious ambiguity about the manner and capacity in which various corporations and their respective representatives are acting.

My Bread Baking Co. v. Cumberland Farms, Inc., 353 Mass. 615, 619 (1969) (emphasis supplied).

Here, the plaintiff has put forth materials evidencing considerable ambiguity with respect to the role of HMC in the marketing, distribution, and sale of Hyundai automobiles in Massachusetts and throughout the United States. The 129page Owner’s Manual given to plaintiff when he purchased his Hyundai was prepared by HMC and printed in Korea. In the Owner’s Handbook, HMC states that “Hyundai’s success in world markets has been largely due to its commitment to building quality products, then standing behind them" (Emphasis supplied.) The Handbook continues:

“(i]n order to accomplish the task of supporting a sales service network spread out across the U.S., Hyundai has established regional operations bases in the Los Angeles, New York City, Chicago and Atlanta vicinities. Each location has a fully staffed regional sales and service office plus a fully stocked Parts Distribution Center . . .
In keeping with its ‘can do’ attitude, Hyundai is focusing its abilities and resources toward maintaining a strong sales, parts and service network throughout the U.S. with special emphasis placed on satisfying the needs of their customers [sic]. (Emphasis supplied.)

Because I am satisfied that HMC “transacts business” in Massachusetts, I need not address the plaintiffs other arguments made pursuant to G.L.c. 223A, §3(b), (c) and (d).

B. MINIMUM CONTACTS

Traditional notions of fair play and substantial justice require that “a foreign corporation will not be subject to in personam jurisdiction un[less] it has ‘purposefully avail(ed) itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.’ ” Walsh, supra citing Hanson v. Denckla, 357 U.S. 235 (1958). Accord, Burger King Corp. v. Rudzewicz, 471 U.S. 462 (1985), quoted with approval in Asahi Metal Ind. v. Super. Ct. of Cal., Solano Cty., 480 U.S. 102

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Related

International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
McGee v. International Life Insurance
355 U.S. 220 (Supreme Court, 1957)
Hanson v. Denckla
357 U.S. 235 (Supreme Court, 1958)
United States v. First National City Bank
379 U.S. 378 (Supreme Court, 1965)
World-Wide Volkswagen Corp. v. Woodson
444 U.S. 286 (Supreme Court, 1980)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
Walsh v. National Seating Co., Inc.
411 F. Supp. 564 (D. Massachusetts, 1976)
Buckeye Associates, Ltd. v. Fila Sports, Inc.
616 F. Supp. 1484 (D. Massachusetts, 1985)
Droukas v. Divers Training Academy, Inc.
376 N.E.2d 548 (Massachusetts Supreme Judicial Court, 1978)
Connecticut National Bank v. Hoover Treated Wood Products, Inc.
638 N.E.2d 942 (Massachusetts Appeals Court, 1994)
Accutest Corp. v. Accu Test Systems, Inc.
532 F. Supp. 416 (D. Massachusetts, 1982)
"Automatic" Sprinkler Corp. of America v. Seneca Foods Corp.
280 N.E.2d 423 (Massachusetts Supreme Judicial Court, 1972)
Hull v. Attleboro Savings Bank
596 N.E.2d 358 (Massachusetts Appeals Court, 1992)
Heins v. Wilhelm Loh Wetzlar Optical Machinery GmbH & Co. KG.
522 N.E.2d 989 (Massachusetts Appeals Court, 1988)
Shuman v. Stanley Works
571 N.E.2d 633 (Massachusetts Appeals Court, 1991)

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Bluebook (online)
4 Mass. L. Rptr. 137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parmenter-v-hyundai-motor-co-masssuperct-1995.