Shannon v. Fidelity National Bank

Supreme Court of Arkansas

Shannon v. Fidelity National Bank

531 S.W.2d 958, 259 Ark. 186, 1976 Ark. LEXIS 2047

CourtSupreme Court of Arkansas

DecidedFebruary 2, 1976

Docket75-226

StatusPublished

Cited by3 cases

This text of 531 S.W.2d 958 (Shannon v. Fidelity National Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Shannon v. Fidelity National Bank, 531 S.W.2d 958, 259 Ark. 186, 1976 Ark. LEXIS 2047 (Ark. 1976).

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Opinion

George Rose Smith, Justice.

This appeal presents a single question under our “long-arm” statute. In 1972 R. S. Pitts executed a $15,000 promissory note to the plaintiffappellee, Fidelity National Bank of West Memphis, Arkansas. The appellant Shannon, a resident of Tennessee, came to the bank and endorsed a guaranty of payment on the back of the note. Pitts defaulted and went bankrupt. Shannon, upon being sued in Arkansas, appeared specially and contended that he was not subject to personal jurisdiction here. This appeal is from a judgment rejecting that plea and holding Shannon liable upon his guaranty.

The judgment is correct. The long-arm statute confers personal jurisdiction over a nonresident as to a cause of action arising from his “transacting any business in this State.” Ark. Stat. Ann. § 27-2502 (Supp. 1975). In construing the statute in Wichman v. Hughes, 248 Ark. 121, 450 S.W. 2d 294 (1970), we cited a number of cases holding that personal jurisdiction may be sustained on the basis of “a single contractual transaction.” To that list may be added Pacer International Corp. v. Otter Distributing Co., 273 N.Y.S. 2d 829, 51 Misc. 2d 737 (1966), where, as here, the nonresident executed a guaranty within the state. Hence the statute, as we have construed it, confers personal jurisdiction over Shannon, because the bank’s cause of action arises from Shannon’s having transacted business in Arkansas.

Affirmed.

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George Rose Smith, Justice.

This appeal presents a single question under our “long-arm” statute. In 1972 R. S. Pitts executed a $15,000 promissory note to the plaintiffappellee, Fidelity National Bank of West Memphis, Arkansas. The appellant Shannon, a resident of Tennessee, came to the bank and endorsed a guaranty of payment on the back of the note. Pitts defaulted and went bankrupt. Shannon, upon being sued in Arkansas, appeared specially and contended that he was not subject to personal jurisdiction here. This appeal is from a judgment rejecting that plea and holding Shannon liable upon his guaranty.

The judgment is correct. The long-arm statute confers personal jurisdiction over a nonresident as to a cause of action arising from his “transacting any business in this State.” Ark. Stat. Ann. § 27-2502 (Supp. 1975). In construing the statute in Wichman v. Hughes, 248 Ark. 121, 450 S.W. 2d 294 (1970), we cited a number of cases holding that personal jurisdiction may be sustained on the basis of “a single contractual transaction.” To that list may be added Pacer International Corp. v. Otter Distributing Co., 273 N.Y.S. 2d 829, 51 Misc. 2d 737 (1966), where, as here, the nonresident executed a guaranty within the state. Hence the statute, as we have construed it, confers personal jurisdiction over Shannon, because the bank’s cause of action arises from Shannon’s having transacted business in Arkansas.

Affirmed.

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Bluebook (online)

531 S.W.2d 958, 259 Ark. 186, 1976 Ark. LEXIS 2047, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shannon-v-fidelity-national-bank-ark-1976.

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