Teknika Electronics Corp. v. Satellite Earth Stations of Louisiana, Inc.

673 So. 2d 1129, 95 La.App. 3 Cir. 663, 1996 La. App. LEXIS 1053, 1996 WL 180089
CourtLouisiana Court of Appeal
DecidedApril 17, 1996
DocketW95-663
StatusPublished
Cited by5 cases

This text of 673 So. 2d 1129 (Teknika Electronics Corp. v. Satellite Earth Stations of Louisiana, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Teknika Electronics Corp. v. Satellite Earth Stations of Louisiana, Inc., 673 So. 2d 1129, 95 La.App. 3 Cir. 663, 1996 La. App. LEXIS 1053, 1996 WL 180089 (La. Ct. App. 1996).

Opinion

673 So.2d 1129 (1996)

TEKNIKA ELECTRONICS CORPORATION, Plaintiff-Appellee,
v.
SATELLITE EARTH STATIONS OF LOUISIANA, INC., Defendant-Appellant.

No. W95-663.

Court of Appeal of Louisiana, Third Circuit.

April 17, 1996.
Writ Denied June 28, 1996.

*1131 Kevin Wade Trahan, Claude Rivet, Lafayette, for Teknika Electronics, Inc.

Charles N. Wooten, Lafayette, for Satellite Earth Stations of Louisiana, et al.

Donlon Pugh, Lafayette, for St. Paul Fire & Marine.

Kevin Richard Tully, New Orleans, for Yasuda Fire & Marine Ins. Co.

Before THIBODEAUX, SAUNDERS, DECUIR, AMY and SULLIVAN, JJ.

SAUNDERS, Judge.

The issue before us is whether, consistent with the due process clause of the United States Constitution, a Louisiana court may exercise in personam jurisdiction over a foreign-owned parent company alleged to be an alter ego of its wholly owned subsidiary with respect to the distribution of allegedly defective products in Louisiana.

After balancing the interests and concerns of the competing parties, we conclude that jurisdiction attaches. The parent company had minimum contacts with the State of Louisiana and failed to show that it would be unreasonable for it to be hailed into court in this state.

FACTS AND PROCEDURAL HISTORY

Plaintiff, Teknika Electronics Corporation, originally filed suit on an open account for the sum of $40,640.97, plus legal interest, against defendant, Satellite Earth Stations of Louisiana, Inc. (SES/LA), in the Thirteenth Judicial District Court, Evangeline Parish, Louisiana. The suit concerned arrearages due on the remainder of $923,930.00 worth of Fujitsu Model 6000 IRD (Integrated Receiver-Decoder) devices, equipment used to receive and descramble television signals from satellites. In March 1990 Teknika, who styles itself as a manufacturer and wholesaler of the products, approached SES/LA, a distributor of such products in certain parts of the United States, to purchase the units. Following its purchase of the units, SES/LA in turn sold the units to other distributors for resale by them to their customers.

Teknika filed suit on December 11, 1991. SES/LA answered Teknika's suit, admitting that it had purchased the equipment, but denied owing any money due to the equipment's alleged defects. Additionally, SES/LA reconvened seeking rescission of the sale and damages. Thereafter, the distributors downstream from SES/LA intervened, all seeking to recover damages for the allegedly defective products.

Eventually, Fujitsu General, Limited, the parent corporation of Teknika was joined as an additional defendant by both SES/LA and the intervenors. Fujitsu General excepted to the jurisdiction of the court on grounds that there were insufficient "minimum contacts" between it and the forum state. Although the parties contested some issues before the hearing conducted October 6, 1994, the parties agreed to the following stipulations:

(1) Fujitsu General is a Japanese corporation with its principal office in Japan;
(2) Fujitsu General has an office in New Jersey;
(3) Fujitsu General has no offices in Louisiana;
(4) Fujitsu General has neither appointed any person in Louisiana as its authorized agent for service of process nor is authorized to do business in the state;
(5) Fujitsu General owns no property or assets in Louisiana;
(6) Fujitsu General has employees in New Jersey;
(7) An employee of Fujitsu General went to Evangeline Parish on April 20, 1990;
*1132 (8) Fujitsu General had sent employees to various trade shows in the United States for the purpose of promoting Fujitsu General products.

The trial court granted Fujitsu General's declinatory exception on grounds of lack of personal jurisdiction prompting SES/LA and intervenors to apply for writs to this court, which we granted on September 17, 1995 for additional briefing.

SES/LA and their aligned customers maintain that the trial court erred in holding that Fujitsu General lacked sufficient contacts with Louisiana to warrant a finding of personal jurisdiction. Essentially, relators maintain that the trial court erred in sustaining Fujitsu General's exception on two grounds, first in finding that Fujitsu General did not have minimum contacts in its own regard and, second in concluding that Fujitsu General, as the alter ego of Teknika, did not have sufficient minimum contacts.

In support of their first theory, they argue that Fujitsu General has widespread involvement in the United States economy, and that this involvement extends into Louisiana. In support of this contention, they point out that Fujitsu General owns a substantial interest in several subsidiary corporations, including the Teknika subsidiary involved here, which it wholly owns, through which the company markets its products. They also point out that Fujitsu sent several employees to trade shows within the United States, specifically one in St. Louis, Missouri, where Fujitsu employees assisted Teknika in retaining customers who had previously acquired Fujitsu through Teknika's predecessor.[1] At the St. Louis trade show, Fujitsu employees promoting Fujitsu products were specifically introduced to SES/LA representatives. Additionally, they observe that a Fujitsu General executive was sent to Mamou, Louisiana to conduct a seminar with employees of the complaining parties relating to certain Fujitsu brand products.[2]

Fujitsu General, on the other hand, maintains that SES/LA and the intervenors have not established the sufficient minimum contacts between it and Louisiana to subject the company to jurisdiction in Louisiana, observing that the trade shows attended by Fujitsu General representatives occurred in locations remote from Louisiana. Finally, the third party reconventional defendant notes that its representative's trip to Mamou, Louisiana, in no way concerned the disputed item.

Addressing relators' alter ego theory, Fujitsu General maintains that in no manner had Fujitsu itself solicited business in Louisiana. The fact that Teknika sold "Fujitsu General" brand items is not dispositive where it cannot be shown that the parent and its subsidiary commingled assets or otherwise operated as a sham.[3]

In Mayo v. Tillman Aero, Inc., 93-467 (La.App. 3 Cir. 2/16/94), 640 So.2d 314, from which we quote at length, we had occasion to address the considerations and burden of proof that are relevant to resolution of the issue before us today:

To assert personal jurisdiction over a non-resident defendant, the Louisiana long-arm statute, Louisiana Revised Statutes 13:3201, provides in pertinent part:
Sec. 3201. Personal jurisdiction over nonresidents.
A. A court may exercise personal jurisdiction over a nonresident, who acts directly or by an agent, as to a cause of action arising from any one of the following activities performed by the nonresident:
*1133 (1) Transacting any business in this state.
* * * * * *
(4) 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 revenue from goods used or consumed or services rendered in this state.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bridges v. Autozone Properties, Inc.
873 So. 2d 25 (Louisiana Court of Appeal, 2004)
Davis v. Dempster, Inc.
790 So. 2d 43 (Louisiana Court of Appeal, 2000)
Aetna Cas. & Surety Co. v. Continental Western Ins. Co.
704 So. 2d 900 (Louisiana Court of Appeal, 1997)
American Valve Mfg. Co. v. VIR
685 So. 2d 1156 (Louisiana Court of Appeal, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
673 So. 2d 1129, 95 La.App. 3 Cir. 663, 1996 La. App. LEXIS 1053, 1996 WL 180089, Counsel Stack Legal Research, https://law.counselstack.com/opinion/teknika-electronics-corp-v-satellite-earth-stations-of-louisiana-inc-lactapp-1996.