Scottsdale Insurance v. Passports, Inc.

26 Mass. L. Rptr. 45
CourtMassachusetts Superior Court
DecidedJuly 23, 2009
DocketNo. 082364
StatusPublished

This text of 26 Mass. L. Rptr. 45 (Scottsdale Insurance v. Passports, Inc.) 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
Scottsdale Insurance v. Passports, Inc., 26 Mass. L. Rptr. 45 (Mass. Ct. App. 2009).

Opinion

Page, Tina S., J.

The plaintiff, Scottsdale Insurance Co. (“Scottsdale”), has filed a motion for a declaratory [46]*46judgment, asking this court to determine the rights of the parties under an insurance contract. The individual defendants now move to dismiss, claiming that this court lacks personal jurisdiction. All defendants move to dismiss on the ground that the courts of the Commonwealth are a forum non conveniens. For the reasons set forth below, the defendants’ motions are ALLOWED.

BACKGROUND

For the purposes of this motion, the court takes the allegations from the plaintiffs complaint as true. Passports, Inc. (“Passports”) is a Massachusetts corporation based in Spencer, Massachusetts. The company organizes overseas trips for high school students throughout the country. Scottsdale, with corporate headquarters in Scottsdale, Arizona, is its insurer.

In 2007, Angela DiMaggio contracted with Passports to lead a group of students from Mesa, Arizona on a European Highlights Tour. Andrew Morrissey signed on as a chaperone. Evan Bailey (“Evan”), then eighteen years old, was one of the approximately seventy-five students who traveled to Europe in DiMaggio’s group.

During the trip, behavioral problems developed within the group. While in Florence, Italy, a fight broke out between the American students and some Italian ■ men. Evan sustained serious injuries, was rendered temporarily comatose and unable to speak, and underwent emergency open brain surgery in Italy. He returned to the United States nineteen days later and has continued to undergo intensive medical care. Evan and his parents, James and Sandra Bailey (the “Baileys”), filed suit against Passports, DiMaggio and Morrissey in Arizona state court, alleging negligence, breach of contract, breach of express and implied warranties, misrepresentation and consumer fraud. The Baileys allege that DiMaggio and Morrissey failed to supervise the students and in fact encouraged them to drink and be disruptive. Scottsdale then filed the instant suit, seeking a declaratory judgment from a Massachusetts court to determine what coverage, if any, it owes Passports.

DISCUSSION

I. Personal Jurisdiction

A. The Massachusetts Longarm Statute, G.L.c. 223A, §3(a)

The Baileys, DiMaggio and Morrissey move to dismiss Scottsdale’s complaint for lack of personal jurisdiction under Mass.R.Civ.P. 12(b)(2).2 Clearly, Massachusetts does not confer general jurisdiction over any of the individual defendants. Thus, this court must determine if the defendants’ contacts satisfy the “transacting business” clause of the Massachusetts Longarm Statute. G.L.c. 223A, §3(a). “Personal jurisdiction is limited to causes of action arising out of the business the person sought to be reached transacts in the State and does not extend to all persons transacting any business at all in the State.” New Hampshire Ins. Guar. Assoc. v. Markem Corp., 424 Mass. 344, 347 (1997), citing Tatro v. Manor Care, Inc., 416 Mass. 763, 767 (1994), and Good Hope Indus., Inc. v. Ryder Scott Co., 378 Mass. 1, 6 (1979). The Longarm Statute allows the Commonwealth to assert jurisdiction “over the person to the limits allowed by the Constitution of the United States.” Tatro, 416 Mass. at 771, citing Good Hope Indus., 378 Mass. at 6. “The inquiiy into jurisdiction is thus twofold and a court may assert jurisdiction only when both of the following questions are answered affirmatively: ‘(1) is the assertion of jurisdiction authorized by the statute, and (2) if authorized, is the exercise of jurisdiction under State law consistent with basic due process requirements mandated by the United States Constitution?’ ” Hahn v. Vermont Law Sch., 698 F.2d 48, 50 (1st Cir. 1983), quoting Good Hope Indus., 378 Mass. at 5-6.

Personal jurisdiction is satisfied as to DiMaggio. She contracted with Passports, a Massachusetts corporation with a usual place of business in Spencer, Massachusetts, to be a “Group Leader” for a Passports tour. She signed a contract that she sent to Passports in Spencer and she received compensation from Passports. DiMaggio sent trip deposits, which she collected as an agent of Passports, from some tour participants to Passports in Massachusetts. She corresponded with Passports by telephone to arrange the particulars of the tour, both before and during the trip. These contacts exceed the minimum required to meet the “transacting any business in the commonwealth” test of G.L.c. 223A, §3(a). See, Bond Leather Co., Inc. v. Q.T. Shoe Mfg. Co., Inc., 764 F.2d 928 (1st Cir. 1985) (mailing of four letters to and receiving one phone call from Massachusetts company sufficient to meet requirements of Longarm Statute); Hahn, 698 F.2d at 51 (sending application and acceptance letter to student in Massachusetts sufficient); Halchak Corp., Inc. v. Symbiot Bus. Group, Inc., 516 F.Sup.2d 149, 152 (D.Mass. 2007) (mailing one check to Massachusetts company sufficient).

The Baileys also satisfy the Longarm Statute. They signed a contract, sent to Passports in Massachusetts, which clearly states Passports’ address on its face. They additionally sent payments to Passports at its office in Spencer. As in Hahn and Halchak, these contacts are sufficient to meet the G.L.c. 223A, §3(a) standard.

The Baileys assert that their situation is analogous to New Hampshire Insurance, in which the court found that section 3(a) did not apply. In that case, Markem, an out-of-state corporation, contracted with American Mutual, a Massachusetts corporation, for an insurance policy. While some administrative operations occurred in Massachusetts, the court found that the contracting was done at an office that American Mutual had established in New Hampshire, that American Mutual was doing business in New Hampshire, and that Markem was reasonable in having assumed [47]*47it was doing business in New Hampshire. The court concluded that, in light of these actions by American Mutual, the fact that Markem mailed checks and claims to American Mutual in Massachusetts was “insufficient to establish personal jurisdiction under G.L.c. 223A, §3(a).” New Hampshire Ins. Guar. Assoc., 424 Mass. at 349.

The present case is easily distinguishable. Unlike American Mutual, Passports has not held itself out as an Arizona corporation or implied that, in contracting with Passports, the Baileys would be doing business in Arizona. Passports clearly indicated its Massachusetts address on the face of all of its documentation. The Baileys knew or should have known that they were doing business in Massachusetts when they contracted with Passports. The Baileys satisfy the requirements for personal jurisdiction under G.L.c. 223A, §3 (a).

Morrissey presents a more difficult question than the other individual defendants. His contacts with the Commonwealth were minimal, at best. However, his mailing an application to serve as “Chaperone” to Passports, his signing of a contract with Passports and his acceptance of consideration from Passports is sufficient to meet the “transacting any business” test.

B. Minimum Contacts Requirement of the United States Constitution

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Related

Platten v. HG Bermuda Exempted Ltd.
437 F.3d 118 (First Circuit, 2006)
William A. Hahn v. Vermont Law School
698 F.2d 48 (First Circuit, 1983)
Good Hope Industries, Inc. v. Ryder Scott Co.
389 N.E.2d 76 (Massachusetts Supreme Judicial Court, 1979)
Kearsarge Metallurgical Corp. v. Peerless Insurance
418 N.E.2d 580 (Massachusetts Supreme Judicial Court, 1981)
Tatro v. Manor Care, Inc.
625 N.E.2d 549 (Massachusetts Supreme Judicial Court, 1994)
New Hampshire Insurance Guaranty Ass'n v. Markem Corp.
676 N.E.2d 809 (Massachusetts Supreme Judicial Court, 1997)
Gianocostas v. Interface Group-Massachusetts, Inc.
450 Mass. 715 (Massachusetts Supreme Judicial Court, 2008)

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Bluebook (online)
26 Mass. L. Rptr. 45, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scottsdale-insurance-v-passports-inc-masssuperct-2009.