Riverland Hardwood Co., Inc. v. Craftsman Hard. Lbr. Co.

251 So. 2d 45, 259 La. 635
CourtSupreme Court of Louisiana
DecidedAugust 10, 1971
Docket50965
StatusPublished
Cited by29 cases

This text of 251 So. 2d 45 (Riverland Hardwood Co., Inc. v. Craftsman Hard. Lbr. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Riverland Hardwood Co., Inc. v. Craftsman Hard. Lbr. Co., 251 So. 2d 45, 259 La. 635 (La. 1971).

Opinions

DIXON, Justice.

Defendant is an Illinois corporation who is neither qualified to do business in Louisiana nor has appointed an agent for service of process. Plaintiff seeks to recover $7,960.92, representing the purchase price for certain lumber which it furnished defendant Craftsman pursuant to Craftsman’s purchase order of June 2, 1969. Defendant filed exceptions to the jurisdiction of Lousiana courts. Following a hearing on the exceptions (in which it was disclosed that the defendant had made three purchases from three different Louisiana lumber mills in 1968 and 1969), the trial court maintained Craftsman’s exception to personal jurisdiction and dismissed plaintiff’s suit. The Court of Appeal affirmed [637]*637(239 So.2d 465). Plaintiff sought writs of certiorari and review of that decision.

Plaintiff's contention is that the "long arm” statute, R.S. 13:3201, allows the courts of this state to exercise personal jurisdiction over a nonresident who buys goods in this state.

R.S. 13 :3201 provides in part as follows:

“A court may exercise personal jurisdiction over a nonresident, who acts directly or by an agent, as to a cause of action arising from the nonresident’s
“(a) transacting any business in this state;
“(b) contracting to supply services or things in this state;
******
“(d) causing injury or damage in this state by an offense or quasi offense committed through an act or omission outside of this state 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 state; or * *

Comment (d) of the Louisiana Law Institute which appears beneath the statute explains the scope to be given to the phrase “transacting any business

“(d) ’ ‘Transacting business,’ as used in Subdivision (a) is a term which is much broader than ‘doing business’ as defined by earlier Louisiana cases, * * *. It is intended to mean a single transaction of either interstate or intrastate business, and to be as broad as the phrase ‘engaging in a business activity’ of R.S. 13:3471(1).”

Several other states use the same phrase as R.S. 13:3201 (a) to extend personal jurisdiction of their courts to nonresidents. See, for example, Ill.Stat.Ann., c. 110, sec. 17 (1961); Mont.R.Civ.Proc., 4B(1) (1962 Supp.); N.Y.C.P.L.R., sec. 302(a) (1963); cf. Uniform Interstate and Int’l. Proc. Act, sec. 1.03.

It is difficult to make a sound argument that, although selling in a foreign state is “transacting business,” buying is not. Almost by definition, to purchase is to do business. Although it is suggested that R. S. 13:3201 (a) is modified by phrase (b) or perhaps by (d), the statute is not structured in such a manner. A straightforward reading of the statute discloses that, within constitutional limits, transacting any business in Louisiana, including a mail order purchase, will subject the nonresident purchaser to the jurisdiction of the Louisiana courts.

Before an examination of the constitutional limits, it is noted that neither plaintiff nor defendant has found any court in any other state which subjects nonresidents to the jurisdiction of its courts when the [639]*639cause of action arises from an isolated purchase of goods by the nonresident.

. Purchases in a state as a regular part of its business, however, might subject a nonresident purchaser to the jurisdiction of courts in the state of the seller. Henry R. Jahn & Son, Inc. v. Superior Court of California, 49 Cal.2d 855, 323 P.2d 437. See .also Sterling Novelty Corp. v. Frank & Hirsch Distributing Co., 299 N.Y. 208, 86 N.E.2d 564. Wisconsin’s jurisdictional statute, one of the broadest, has been interpreted as allowing a cause of action in Wisconsin against an Illinois purchaser on the basis, allowed by the jurisdictional statute, of permitting suit in Wisconsin in an action arising out of a promise by the nonresident defendant to pay for services to be performed within the State of Wisconsin. Flambeau Plastics Corp. v. King Bee Manufacturing Co., 24 Wis.2d 459, 129 N. W.2d 237.

Statutes extending the jurisdiction of the courts of a state to nonresidents must meet the due process requirements of the 14th Amendment of the United States Constitution. International Shoe Co. v. State of Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95, involved the application of the laws of’the. State of Washington to commission salesmen of a nonresident shoe company.. Chief Justice Stone summarized the jurisprudence that had developed to tháLday, saying “due process requires only that in order to subject a defendant to a judgment in personam, if he be not present within the territory of the forum, he have certain minimum contacts with it such that the maintenance of the suit docs not offend ‘traditional notions of fair play and substantial justice.’ ” One factor to be considered to determine whether “traditional notions” are offended was said to be an “estimate of the inconveniences” which would result from a trial away from the defendant’s home or place of business. The “quality and nature of the activity” in the foreign state was said to be a factor to be considered. The court was impressed with the fact that the nonresident shoe company’s activities were neither irregular nor casual, but were systematic and continuous throughout the years involved. The majority opinion was criticized for the emotional appeal in the words “fair play,” “justice,” and “reasonableness,” because such natural law concepts lend only weak assistance in deciding future cases.

Yet, when it became the critic’s turn to write, in McGee v. International Life Insurance Co., 355 U.S. 220, 78 S.Ct. 199, 2 L.Ed.2d 223, the standards announced in International Shoe Co. were cited and quoted, the majority opinion saying: “It is sufficient for purposes of due process that the suit was based on a contract which had substantial connection with that State.” The court was impressed with the idea- that a state has a “manifest interest” in. piloidd[641]*641ing effective means for its citizens to pursue a claim against an insurer short of following the insurance company “to a distant State jn order to hold it legally accountable!”'

Hanson v. Denckla, 357 U.S. 235, 78 S. Ct. 1228, 2 L.Ed.2d 1283, added little to the measure to decide whether a long arm statute is compatible with the due process clause except a reference to “affiliating circumstances” in the state of the forum.

In the absence of a more precise standard, then, we must decide whether there is a difference between foreign purchasers and foreign sellers with respect to the due process clause.

These differences are suggested:

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251 So. 2d 45, 259 La. 635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/riverland-hardwood-co-inc-v-craftsman-hard-lbr-co-la-1971.