Petricca Construction Co. v. A.C. De Soto Equipment Co.

2 Mass. Supp. 226
CourtDistrict Court, D. Massachusetts
DecidedFebruary 24, 1981
DocketCiv. A. No. 79-2166-F
StatusPublished

This text of 2 Mass. Supp. 226 (Petricca Construction Co. v. A.C. De Soto Equipment Co.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petricca Construction Co. v. A.C. De Soto Equipment Co., 2 Mass. Supp. 226 (D. Mass. 1981).

Opinion

MEMORANDUM

FREEDMAN, D.J.

This case arises out of plaintiffs purchase of a portable rock crushing plant from the defendant. It is before the Court today for de novo review of Magistrate Princi’s recommendation that the Rule 12(b)(2) motion to dismiss for want of personal jurisdiction by defendant A.C. DeSoto Equipment Co., Inc, be denied. 28 U.S.C. § 636(b)(1)(C).

I. Factual Background

The pleadings and supporting affidavits reveal the following substantially undisputed facts. Petricca Construction Co. (“Petricca”) is a Massachusetts corporation based in Pittsfield. A. C. DeSoto Equipment Co., Inc. (“DeSoto”) is a New York corporation based in Fishers, New York. In April 1979 William Kemahan, the Petricca purchasing agent, saw DeSoto’s advertisement in a trade magazine for portable stone crushing machines.

Kemahan contacted DeSoto President Alfred DeSoto1 to discuss purchase of a suitable crusher. By telephone, Desoto subsequently advised Kernahan that he had located a suitable crusher in Tioga, Pennsylvania. Petricca dispatched three employees to inspect the crusher and to observe it in operation. Petricca thereafter determined to1 buy the crusher, executed a purchase order, and tendered a certified check for $100,000. An invoice was prepared and1' sales documents1 were executed in Tioga, Pennsylvania. The invoice describes the crusher, specifies that the sale is “used, as is, where-is,” and specifies delivery as “F.O.B. Tioga, Penna.”

Upon completion of the transaction, the crusher was loaded onto a Petricca truck in Tioga, Pennsylvania and hailed to a Petricca job site in Massachusetts. It broke down within ten days and in the course of repairing the, problems Petricca learned that the crusher was considerably older than was initially suppose^!. This action followed, alleging tortious misrepresentation, breach of contract,- and violation of the Massachusetts Consumer Protection Act, Mass. Gen. Laws c. 9 3 A.

DeSoto concededly does business in New [228]*228York, upper Pennsylvania and upper New Jersey, concentrated within a 200-mile radius of Rochester, New York. It advertises in six newspapers of general circulation in New York and Pennsylvania. One such paper, published in Albany, New York, apparently circulates in Western Massachusetts as well. Advertisements in that newspaper played no part in this transaction. In addition, DeSoto places advertisements in nine trade journals. Of these, at least six have a circulation which might reasonably include Massachusetts. Kemahan appears to have seen an advertisement in one of these publications.

DeSoto admits to a total of five transactions with Massachusetts parties, involving four sales (including this one) and one purchase. All sales were F.O.B. points outside of Massachusetts.

II. Standards for Long-Arm Jurisdiction

In reliance upon these facts, Petricca contends that in this diversity case the Court has personal jurisdiction over DeSoto by virtue of the Massachusetts long-arm statute, G.L. c. 223A, §3.2 Under these circumstances, Massachusetts law is dispositive as to whether DeSoto is amenable to suit. Marketing & Distribution Resources, Inc. v. Paccar, Inc., 460 F.Supp. 990, 991 (D. Mass. 1978). The plaintiff bears the burden of establishing that this Court has jurisdiction. Lizotte v. Canadian Johns-Manville Co., Ltd., 398 F.2d 607 (1st Cir. 1967).

In addressing a claim of personal jurisdiction over a non-resident defendant, the court conducts a two-part inquiry: (1) is the claimed jurisdiction authorized by statute, and (2) is the exercise of jurisdiction compatible with the due process requirements of the United States Constitution. See, Good Hope Industries, Inc. v. Ryder Scott Co., 389 N.E.2d 76, 79 (Mass. 1979). To a court interpreting the Massachusetts long-arm statute, the inquiry is essentially unitary, because the Supreme Judicial Court has interpreted the statute “ ‘as an assertion of jurisdiction over the person to the limits allowed by the Constitution of the United States.’ ” Automatic Sprinkler Corporation of America v. Seneca Foods Corporation [280 N.E.2d 423, 424 (Mass. 1972)].” Whittaker Corporation v. United Air-Craft Corporation, 482 F.2d 1079, 1083 (1st Cir. 1973).

III. Review of Magistrate’s Recommendation

In the memorandum in support of its motion, DeSoto argued that §3 did not support personal jurisdiction. Petricca, in its reply memorandum, limited its arguments in support of jurisdiction to the applicability of § § 3(a), (b) and (d).3 The Magistrate limited his discussion to the applicability of § 3(d), which he found to support personal jurisdiction in this case. The Magistrate correctly noted that a finding of personal jurisdiction under any subsection of § 3 supports jurisdiction as to the entire action. Good Hope Industries v. Ryder Scott Co., 389 N.E.2d 76, 78 n. 3 (Mass. 1979).

The Magistrate apparently determined that § 3(d) was satisfied because DeSoto “derives substantial revenue from goods used or consumed” in Massachusetts. The defendant takes exception to this conclusion.

I will initially agree with the Magistrate that the $100,000 purchase price constitutes “substantial revenue” within the meaning of § 3(d). As little as $5,000 has been held to satisfy § 3(d). Mark v. Obear & Sons, Inc., 313 F.Supp. 373, 376 (D. Mass. 1970); see, Carlson Corp. v. University of Vermont, 402 N.E.2d 483, 486 n. 8 (Mass. [229]*2291980). However, this determination satisfies only one element of § 3(d). In order to carry its burden of showing personal jurisdiction under this subsection, Petricca must also show that DeSoto has “[caused] tortious injury in this commonwealth by an act or omission outside this commonwealth.”

The threshold inquiry here is whether Petricca should even be allowed to argue that DeSoto has caused a tortious injury. In c. 223, §3, the Massachusetts legislature drew a clear distinction between personal jurisdiction arising out of commercial dealings, see §§3(a) and (b), and personal jurisdiction arising out of tortious action, see § § 3(c) and (d). In its complaint, Petricca has alleged that a breach of contract and a tortious misrepresentation arise out of the same dealings. While recognizing a plaintiffs right to plead alternative theories of recovery, Fed. R. Civ. P. 8(e)(2), I am not prepared to hold that Petricca may evade the legislative purpose expressed in § 3(d) by a bare assertion of tortious misconduct.

The importance of this distinction has been noted in connection with analogous provisions of the New York long-arm statute, C.P.L.R. § 302(a)(2): '

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Bluebook (online)
2 Mass. Supp. 226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petricca-construction-co-v-ac-de-soto-equipment-co-mad-1981.