Shepler v. Korkut

190 N.W.2d 281, 33 Mich. App. 411, 1971 Mich. App. LEXIS 1782
CourtMichigan Court of Appeals
DecidedMay 18, 1971
DocketDocket 7992
StatusPublished
Cited by9 cases

This text of 190 N.W.2d 281 (Shepler v. Korkut) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shepler v. Korkut, 190 N.W.2d 281, 33 Mich. App. 411, 1971 Mich. App. LEXIS 1782 (Mich. Ct. App. 1971).

Opinion

Kelley, J.

Claiming fraud, breach of warranty and breach of contract, plaintiff alleged in his complaint: he operated a passenger service ferry between Mackinaw City and Mackinac Island, Michigan ; he needed an additional boat capable of carrying a large number of passengers at a certain speed; he entered into a contract with defendants Vinette and Kidd for construction thereof; he engaged the services of defendants Korkut and Korkut Engineers, Inc., of the State of Louisiana, as architects, to design the boat; the resulting boat did not operate due to faulty design and construction.

In their motion for accelerated judgment under GCR 1963, 116.1, defendants Korkut challenge the Michigan court’s jurisdiction over them.

One of our “long-arm” statutes, MCLA § 600.705 (Stat Ann 1962 Rev § 27A.705), provides:

“The existence of any of the following relationships between an individual or his agent and the state shall constitute a sufficient basis of jurisdic *414 tion to enable tbe courts of record of this state to exercise limited personal jurisdiction over sucb individual and to enable such courts to render personal judgments against such individual or his representative arising out of the act or acts which create any of the following relationships:
“(1) The transaction of any business within the state.
“(2) The doing or causing any act to be done, or consequences to occur, in the state resulting in an action for tort.
# * *
“(5) Entering into a contract for services to be rendered or for materials to be furnished in the state by the defendant.”

Another such statute, MCLA § 600.715 (Stat Ann 1962 Rev § 27A.715), provides that the existence of any of these same three relationships between a corporation or its agent and the state is a sufficient basis to enable, these courts to exercise limited personal jurisdiction over such corporation and to render personal judgments against such corporation arising out of the act or acts which create any of the three relationships.

Jurisdiction exists if defendants Korkut had such “minimum contacts” with this state that maintenance of the action would not offend traditional notions of fair play and substantial justice. International Shoe Co. v. Washington (1945), 326 US 310 (66 S Ct 154, 90 L Ed 95). It is essential in each case that there be some act by which the defendant purposely avails itself of the privilege of conducting activities within the forum state, thus invoking the benefits and protection of its laws. Hanson v. Denckla (1958), 357 US 235 (78 S Ct 1228, 2 L Ed 2d 1283).

*415 It is sufficient for purposes of due process that the suit be based on a contract which had a substantial connection with the state of the forum. A single transaction may be sufficient to meet the “minimum contacts” test. The state of the forum may have a manifest interest in providing effective means of redress for its residents, considering the particular circumstances of the case and that the crucial witnesses may be its residents. McGee v. International Life Ins. Co. (1957), 355 US 220 (78 S Ct 199, 2 L Ed 2d 223).

The trend in defining due process is toward the court in which both parties can most conveniently settle their dispute. Gray v. American Radiator and Standard Sanitary Corporation (1961), 22 Ill 2d 432 (176 NE2d 761).

Whether the required “minimal contacts” exist depends upon the particular circumstances of each case. Woods v. Edgewater Amusement Park (1969), 381 Mich 559, 569.

We turn now to a consideration of the circumstances in the case before us. In support of their motion defendants Korkut, residents of Louisiana, submitted the following by way of affidavit:

“During the month of September, 1966, William H. Shepler came to the office of Korkut Engineers, Inc. at 3225 Danny Park, Metairie, Louisiana, to discuss the designing of a ‘water taxi’. A verbal agreement was entered into in Metairie, Louisiana under which Korkut Engineers, Inc. prepared design and engineering drawings for the vessel which was subsequently named ‘Mein Kapitan’. After preparation of all design drawings and engineering drawings and calculations was done in Metairie, Jefferson Parish, Louisiana, the defendant, Korkut Engineers, Inc. was paid in Metairie, Jefferson Parish, Louisiana for its services.”

*416 Tn Ms answering affidavit plaintiff stated:

“defendants, Melimet D. Korkut and Korkut Engineers, Incorporated, were recommended by Thomas D. Vinette and that the building of the ‘water taxi’ was a joint undertaking of the defendants; that defendants were fully advised that the boat would carry passengers for hire between Mackinac Island and Mackinaw City, Michigan, and that the vessel, including all plans, materials, and so forth, would require submission and approval by the Department of Transportation, United States Coast Guard Marine Inspection, St. Ignace, Michigan ; that as a part of the contract of the defendants with this plaintiff they agree to secure approval of the Department of Transportation, United States Coast Guard Marine Inspection at St. Ignace, Michigan; that said defendants, including Mehmet D. Korkut and Korkut Engineers, Incorporated, were in constant contact with the Officer in Charge Marine Inspection, St. Ignace, Michigan, and plaintiff has numerous reports of defendants’ contacts in writing during December 1966, January 1967, March 1967, May 1967, June 1967 and August 1967, which will be introduced at time of trial; that said defendants were in person in the State of Michigan attempting to get approval of the Officer in Charge Marine Inspection, St. Ignace, Michigan, and said approval was never obtained by the defendants which was a part of the contract, and their failure in the design and construction of said boat also was a negligent act and tort as charged in the complaint. Deponent admits he made visits to the office and yards of the defendants but again states that the contract with Korkut Engineers, Incorporated, was accepted by Mm by phone call from Mackinaw City, Michigan, shortly prior to the written contract with T. D. Vinette Company at Mackinaw City, Michigan, on December 16, 1966.”

*417 The circuit court ruled:

“From a careful consideration of the affidavits on file in support of and in opposition to the said motion, and from a perusal of the cases cited in briefs submitted by respective counsel, the court finds that services personally rendered on behalf of plaintiff by defendant Mehmet D. Korkut in connection with the design of the vessel ‘Mein Kapitan’ and the suggested corrections thereof made after a personal inspection of the said vessel in Mackinaw City, Michigan by defendant Mehmet D. Korkut, in the opinion of the court, clearly brings the said defendants within the jurisdiction of this court.”

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Cite This Page — Counsel Stack

Bluebook (online)
190 N.W.2d 281, 33 Mich. App. 411, 1971 Mich. App. LEXIS 1782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shepler-v-korkut-michctapp-1971.