Shellenberger v. Tanner

227 S.E.2d 266, 138 Ga. App. 399, 1976 Ga. App. LEXIS 2632
CourtCourt of Appeals of Georgia
DecidedApril 5, 1976
Docket51911, 51912, 51914, 51915
StatusPublished
Cited by88 cases

This text of 227 S.E.2d 266 (Shellenberger v. Tanner) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shellenberger v. Tanner, 227 S.E.2d 266, 138 Ga. App. 399, 1976 Ga. App. LEXIS 2632 (Ga. Ct. App. 1976).

Opinion

Deen, Presiding Judge.

1. Development of the Exercise of Jurisdiction Over Nonresident Defendants.

Any analysis of the power of a forum’s courts to exercise in personam jurisdiction over a nonresident defendant must begin with the decision of the United States Supreme Court in Pennoyer v. Neff, 95 U. S. 714 (24 LE 565). The court there held that the due process clause of the Fourteenth Amendment is violated when a court renders a personal judgment against a nonresident defendant over whom jurisdiction has not first been obtained; the requisite personal jurisdiction cannot be supplied by service of process outside the territory of the forum or through publication. Jurisdiction over nonresidents was held to be predicable upon either their presence within the forum or upon their waiver of objection to the exercise of jurisdiction by the forum’s tribunals. Reduced to its legal essence, the holding in Pennoyer v. Neff was that ". . . The foundation of jurisdiction is physical power...” McDonald v. Mabee, 243 U. S. 90, 91 (37 SC 343, 61 LE 343). Notwithstanding such language in the cases, it is clear (and the court has itself recognized 1 ) that when the traditional notion of in *402 personam jurisdiction met head-to-head with the phenomenon of American industrialization and its consequent "national” economy, resort was made to judicial sanctioning of "legal fictions” as the bases for exercising jurisdiction over nonresident corporations. The following theories are examples of such expediencies: (1) "Consent” to suit 2 ; (2) "Presence” in the forum 3 ; and (3) "Doing business” in the forum thereby submitting to its jurisdiction. 4

It was not until the decision in International Shoe Co. v. Washington, 326 U. S. 310 (66 SC 154, 90 LE 95), that such "fictions” were discarded and the impetus toward expansion of the permissible scope of in personam jurisdiction over nonresidents was heralded by a new test: "[D]ue 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 does not offend 'traditional notions of fair play and substantial justice.’ ” Id. 326 U. S. 316. In rejecting the prior "fictions” and in adopting the "minimum contacts and fair play and substantial justice” rule, the court propounded a more flexible test for delineating the scope of in personam jurisdiction over nonresident defendants — a test to which it has adhered in all subsequent decisions on the issue. Unhappily however, the flexibility gained has too often been at the cost of confusion over application of the International Shoe test to differing factual situations. This confusion has no doubt been the result of a rush by the states to enact "long arm statutes” so as to facilitate suits by their resident *403 plaintiffs against nonresident defendants. Georgia herself is no stranger to either the "long arm statute” or the confusion over its interpretation.

A warning has been issued however to the states and their "long arm” reaction stimulated by International Shoe. In Hanson v. Denckla, 357 U. S. 235 (78 SC 1228, 2 LE2d 1283), the court cautioned that restrictions on the exercise of personal jurisdiction over nonresident defendants are more than a mere guaranty of immunity from inconvenient or distant litigation; they are rather a consequence of a territorial limitation on the power of the forum state. However minimal the burden of defending in a foreign tribunal, a defendant may not be called upon to do so unless he has had the "minimal contacts” with that state that are the prerequisite to its exercise of jurisdiction over him. And most significantly, the unilateral activity of those who claim some relationship with a nonresident defendant cannot satisfy the requirement of contact between that defendant and the forum itself. The application of the "minimum contacts” rule will vary with the quality and nature of the defendant’s activity but it is essential in each case "that there be some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protection of its laws.” Id. 357 U. S. 253.

Having established the framework for a "minimum contacts” rule, the court was called upon to determine the sufficiency of a single act or transaction by the nonresident in the forum as the basis upon which to predicate in personam jurisdiction. In McGee v. International Life Ins. Co., 355 U. S. 220 (78 SC 199, 2 LE2d 223), jurisdiction was sustained over a nonresident corporation whose sole "contact” with the forum was the policy of insurance at issue; it is "sufficient for purposes of due process that the suit was based on a contract which had substantial connection with that State.” Id. 355 U. S. 223. The McGee decision stands alone as the court’s expression on the constitutionality of predicating jurisdiction upon a single act or transaction by the nonresident with or in the forum. This lack of further guidance has resulted in differing interpretations of *404 McGee itself 5 but the clear and discernible trend of recent authority is to the effect that a single act by the nonresident in the forum, whether it be a contract or a tort, having its impact within the territory of the forum ^.may satisfy the "minimum contacts” test. 6

From International Shoe’s “skeleton” and the subsequent "fleshing out” cases can be gleaned three "rules” by which to judge the power of a forum state to exercise jurisdiction over a nonresident defendant. They are (1) The nonresident must purposefully avail himself of the privilege of doing some act or consummating some transaction with or in the forum. 7 It is not necessary that the defendant or his agent be physically within the forum, for an act or transaction by mail may suffice. 8 A single event may be a sufficient basis if its effects within the forum are substantial enough to qualify under Rule 3; (2) The plaintiff must have a legal cause of action against the nonresident, which arises out of, or results from, the activity or activities of the defendant within the forum 9 ; and (3) If (and only if 10 ) the requirements of Rules 1 and 2 *405

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Bluebook (online)
227 S.E.2d 266, 138 Ga. App. 399, 1976 Ga. App. LEXIS 2632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shellenberger-v-tanner-gactapp-1976.