Phoenix America Corp. v. Brissey

265 S.E.2d 476, 46 N.C. App. 527, 1980 N.C. App. LEXIS 2864
CourtCourt of Appeals of North Carolina
DecidedMay 6, 1980
Docket7928DC817
StatusPublished
Cited by39 cases

This text of 265 S.E.2d 476 (Phoenix America Corp. v. Brissey) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phoenix America Corp. v. Brissey, 265 S.E.2d 476, 46 N.C. App. 527, 1980 N.C. App. LEXIS 2864 (N.C. Ct. App. 1980).

Opinion

HEDRICK, Judge.

Although the denial of a motion to dismiss ordinarily is not immediately appealable, defendants in this case properly proceed pursuant to the provisions of G.S. § l-277(b), which prescribes a right of immediate appeal where there has been “an adverse ruling as to the jurisdiction of the court over the person or property of the defendant. . . .” Since defendants are safely before us, we confront the crucial issue presented by their appeal, i.e., were statutory and constitutional requirements satisfied so as to permit the courts of North Carolina to exercise jurisdiction in per-sonam over these South Carolina defendants?

To resolve that issue, we must consider first whether a basis for asserting jurisdiction exists under the statute, G.S. § 1-75.4, commonly referred to as the “long-arm” statute, the provisions of which are recognized as a “ ‘legislative attempt to assert in per- *530 sonam jurisdiction over nonresident defendants to the full extent permitted by the Due Process Clause of the United States Constitution.’ ” Sparrow v. Goodman, 376 F. Supp. 1268, 1270 (W.D.N.C. 1974). To that end, the statute is accorded a liberal construction in favor of finding personal jurisdiction, subject only to due process limitations. Dillon v. Numismatic Funding Corp., 291 N.C. 674, 231 S.E. 2d 629 (1977); see also Munchak Corp. v. Riko Enterprises, Inc., 368 F. Supp. 1366 (M.D.N.C. 1973).

Here, the statute clearly affords grounds for the exercise of jurisdiction by our courts. Subsection (5)(d) of § 1-75.4 provides for jurisdiction in any action which “[r]elates to goods, documents of title, or other things of value shipped from this State by the plaintiff to the defendant on his order or direction.” It is not disputed that the goods in question were shipped from North Carolina. Thus, the initial inquiry in the determination whether jurisdictional grounds are present must be answered affirmatively.

Even so, we must further answer the question whether the exercise of jurisdiction offends or comports with due process. United Buying Group, Inc. v. Coleman, 296 N.C. 510, 251 S.E. 2d 610 (1979); Dillon v. Numismatic Funding Corp., supra; Gro-Mar Public Relations, Inc. v. Billy Jack Enterprises, Inc., 36 N.C. App. 673, 245 S.E. 2d 782 (1978). This is the crucial inquiry and the ultimate determinative factor in assessing whether jurisdiction may be asserted under the “long-arm” statute. Chadbourn, Inc. v. Katz, 285 N.C. 700, 208 S.E. 2d 676 (1974); Modern Globe, Inc. v. Spellman, 45 N.C. App. 618, 263 S.E. 2d 859 (1980). The “litmus standard” for judging when a state may exercise in personam jurisdiction over a nonresident defendant is well-known and was established 35 years ago by the landmark case of International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945): Due process requires that a nonresident defendant have certain minimum contacts with the forum state such that the maintenance of the suit does not offend “traditional notions of fair play and substantial justice.” Id. at 316, 66 S.Ct. 158, 90 L.Ed. 102. See also O’Neal v. Hicks Brokerage Co., 537 F. 2d 1266 (4th Cir. 1976). Helpful criteria for analyzing whether minimum contacts are present include:

*531 [T]hree primary factors, namely, the quantity of the contacts, the nature and quality of the contacts, and the source and connection of the cause of action with those contacts, . . . and . . . two others, interest of the forum state and convenience.
. . .

Aftanase v. Economy Baler Co., 343 F. 2d 187, 197 (8th Cir. 1965) [per Justice (then Judge) Blackmun]. See also Fieldcrest Mills, Inc. v. Mohasco Corp., 442 F. Supp. 424 (M.D.N.C. 1977); McCoy Lumber Industries, Inc. v. Niedermeyer-Martin Co., 356 F. Supp. 1221 (M.D.N.C. 1973). Moreover, the analysis requires that the interests of and fairness to both the plaintiff and the defendant be carefully weighed and considered. Dillon v. Numismatic Funding Corp., supra. The determination cannot be effected by using a “mechanical formula or rule of thumb, but by ascertaining what is fair and reasonable and just in the circumstances.” Farmer v. Ferris, 260 N.C. 619, 625, 133 S.E. 2d 492, 497 (1963); see also Perkins v. Benguet Consolidated Mining Co., 342 U.S. 437, 72 S.Ct. 413, 96 L.Ed. 485 (1952).

Applying these standards to the facts of the case before us, the quantity of the contacts which the Brisseys had with North Carolina is insubstantial. Their uncontradicted affidavit settled that they had dealings with the plaintiff on only one other occasion prior to the transaction giving rise to this lawsuit. Moreover, their undisputed claim is that they have not been within the State of North Carolina for at least two years, nor within Buncombe County for at least five years.

In our opinion, the nature and quality of the defendants’ contacts with this State, on the record before us, is likewise de minimus. The purchase at issue involves only one sale, for a total amount of $2,700.00. [Cf. Fieldcrest Mills, Inc. v. Mohasco Corp., supra, which involved a contract amount in excess of $400,000.00.] Moreover, we think the sole thread linking the Brisseys to North Carolina is the processing of their order for stoves through the home office of the plaintiff in Asheville. The order, according to uncontradicted evidence, was solicited by plaintiff and accepted by defendants in South Carolina. The goods, while shipped from North Carolina, were accepted in South Carolina. Payment for the goods was made to the driver of plaintiff’s delivery truck in South Carolina. Plaintiff appears to rely on the fact that payment on the *532 check was stopped through a bank in North Carolina, but we find that circumstance merely fortuitous and, in any event, insufficient to establish the requisite substantial connection between the transaction and this State. Cf. World-Wide Volkswagen Corp. v. Woodson, --- U.S. ---, 100 S.Ct. 559, 62 L.Ed. 2d 490 (1980).

We are aware that a single contract can furnish the basis for the exercise of jurisdiction over a nonresident. McGee v. International Life Insurance Co., 355 U.S. 220, 78 S.Ct. 199, 2 L.Ed. 2d 223 (1957); Chadbourn, Inc. v. Katz, supra. If the contract is to be actually performed in North Carolina and has a substantial connection with this State, jurisdiction will lie. Staley v. Homeland, Inc., 368 F. Supp. 1344 (E.D.N.C. 1974).

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265 S.E.2d 476, 46 N.C. App. 527, 1980 N.C. App. LEXIS 2864, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phoenix-america-corp-v-brissey-ncctapp-1980.