Ultimatics, Inc. v. Minimatic, Inc.

715 F. Supp. 1448, 1989 U.S. Dist. LEXIS 8358, 1989 WL 83442
CourtDistrict Court, W.D. Arkansas
DecidedJune 29, 1989
DocketCiv. No. 89-5058
StatusPublished

This text of 715 F. Supp. 1448 (Ultimatics, Inc. v. Minimatic, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ultimatics, Inc. v. Minimatic, Inc., 715 F. Supp. 1448, 1989 U.S. Dist. LEXIS 8358, 1989 WL 83442 (W.D. Ark. 1989).

Opinion

MEMORANDUM OPINION

H. FRANKLIN WATERS, Chief Judge.

This is a breach of contract action. Plaintiff alleges defendant supplied nonconforming goods that were rejected by plaintiff. The action was originally brought in the Circuit Court of Washington County, Arkansas, and removed to this court pursuant to 28 U.S.C. § 1441. It is asserted that this court has subject matter jurisdiction by reason of diversity of citizenship and the requisite amount in controversy pursuant to 28 U.S.C. § 1332.

Defendant has filed a motion to dismiss pursuant to Rule 12(b)(2), Federal Rules of Civil Procedure, for lack of jurisdiction over the person. The motion is supported by a brief and the affidavit of Leon Shaw, the Chairman of the Board and Secretary-Treasurer of the defendant, Minimatic, Inc., a Florida corporation. Plaintiff, Ulti-matics, Inc., an Arkansas corporation, has filed a response accompanied with the affidavit of Harris Goldman, the President of Ultimatics, Inc.

The defendant in support of its motion to dismiss argues that it does not have sufficient “minimum contacts” with the forum for the court to exercise personal jurisdiction over it. The defendant manufactures precision machine products and medical devices. It is undisputed that the defendant performs all of its manufacturing functions solely in the State of Florida and has no office, agent, employee, property or telephone listing in the State of Arkansas. Defendant further alleges that it does not solicit business in Arkansas by mail or catalog.

The business relationship between the parties began in 1984. In the normal transaction of business, plaintiff would submit manufacturing orders, by telephone or in writing, to defendant’s office in Deerfield [1449]*1449Beach, Florida. All shipments of products to plaintiff have been “FOB Deerfield Beach, Florida,” and all payments have been remitted to Minimatic in Florida. Over the course of the business relationship, Harris Goldman, in his capacity as plaintiffs president, has visited defendant’s Florida facilities on at least three separate occasions.

The present controversy arises out of a contract entered into in September, 1986. The initial contact was made by plaintiff when it requested Minimatic to perform certain manufacturing services. The remaining contacts between the parties have been either by telephone or mail. After delivery of the goods called for in the September, 1986, contract, Ultimatics rejected the goods as nonconforming.

Plaintiff has not controverted defendant’s allegations in regard to the contacts of the parties resulting in the September, 1986, contract. However, plaintiff asserts that the defendant places too much emphasis on the fact that Minimatic did not solicit the order from Ultimatics. Plaintiff urges the court to adopt a broader view which encompasses the entire working relationship of the parties rather than focusing merely on the contacts surrounding the 1986 contract. Plaintiff argues that where, as in this case, the negotiations which resulted in the contract to supply goods in the forum state are the furtherance of an ongoing business relationship in which the nonresident supplies goods for sale by the plaintiff in the forum state, the issue of whether the defendant purposefully availed itself of the laws of the forum state should not be determined by whether the nonresident or the resident initiated such negotiations.

For the purposes of this motion, the burden of proof is on the party seeking to establish this court’s in personam jurisdiction. Block Industries v. DHJ Industries, Inc., 495 F.2d 256 (8th Cir.1974). This burden can be met, however, by a prima facie showing that jurisdiction is conferred by the “long-arm” statute. Id. at 259.

As this action is founded on diversity of citizenship, the court must look to Arkansas law for the basis of in personam jurisdiction over a nonresident defendant. Mountaire Feeds, Inc. v. Agro Impex, S.A., 677 F.2d 651 (8th Cir.1982). Plaintiff asserts that this court has personal jurisdiction over the defendant pursuant to the Arkansas “long-arm” statute, Ark.Code Ann. § 16-4-101 (1987).

It is now fundamental that the inquiry as to the existence of in personam “long-arm” jurisdiction requires a two-part analysis. The court must first determine whether the facts presented satisfy the requirements of the state “long-arm” statute. After that is determined, and only if that is determined affirmatively, the court must then determine whether the state’s exercise of personal jurisdiction is consistent with the due process requirement of the Fourteenth Amendment. Davis v. Kroger Co., 576 F.Supp. 1156 (W.D.Ark.1983); Jeanway Industries, Inc. v. Knudson Mfg. Co., 533 F.Supp. 678 (W.D.Ark.1981).

The Arkansas long-arm statute provides certain listed bases for personal jurisdiction. The statute provides for personal jurisdiction over persons “transacting any business in this state” or “contacting to supply services or things in this state.” Ark.Code Ann. §§ 16-4-101(C)(l)(a), 16-4-101(C)(1)(b). The term person includes a corporation whether or not it is organized under Arkansas law. Ark.Code Ann. § 16-4-101(A). When jurisdiction is premised on either of these sections, the cause of action must arise out of the transaction of business in this state or the supplying of things in this state. Ark.Code Ann. § 16-4-101(C)(2). See also Krone v. AMI, Inc., 367 F.Supp. 1141 (E.D.Ark.1973). In this case, the cause of action arises out of the contract in which defendant agreed to supply goods to be resold in this state. Therefore, in the court’s view, the Arkansas long-arm statute reaches the defendant in this case.

“The purpose of the Arkansas long-arm statute is to allow such personal jurisdiction over nonresidents as is allowed by the due process clause of the United States Constitution.” Kilcrease v. Butler, 293 Ark. 454, 455, 739 S.W.2d 139 (1987), citing [1450]*1450S.D. Leasing, Inc. v. Al Spain and Associates, 277 Ark. 178, 640 S.W.2d 451 (1982); Nix v. Dunavant, 249 Ark. 641, 460 S.W.2d 762 (1970).

The court must now determine whether the exercise of personal jurisdiction is consistent with the due process clause. “The test for due process is whether there are sufficient ‘minimum contacts’ between the nonresident defendant and the forum state so that the assertion of personal jurisdiction over the nonresident defendant is consistent with traditional notions of fair play and substantial justice.” Mountaire Feeds, Inc. v. Agro Impex, S.A., 677 F.2d 651, 654 (8th Cir.1982), citing World-Wide Volkswagen Corp. v. Woodson,

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Related

International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
Shaffer v. Heitner
433 U.S. 186 (Supreme Court, 1977)
World-Wide Volkswagen Corp. v. Woodson
444 U.S. 286 (Supreme Court, 1980)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
Krone v. AMI, INC.
367 F. Supp. 1141 (E.D. Arkansas, 1973)
Jeanway Industries, Inc. v. Knudson Manufacturing Co.
533 F. Supp. 678 (W.D. Arkansas, 1981)
Nix v. Dunavant
460 S.W.2d 762 (Supreme Court of Arkansas, 1970)
SD Leasing, Inc. v. Al Spain and Associates, Inc.
640 S.W.2d 451 (Supreme Court of Arkansas, 1982)
Kilcrease v. Butler
739 S.W.2d 139 (Supreme Court of Arkansas, 1987)
Davis v. Kroger Co.
576 F. Supp. 1156 (W.D. Arkansas, 1983)

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Bluebook (online)
715 F. Supp. 1448, 1989 U.S. Dist. LEXIS 8358, 1989 WL 83442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ultimatics-inc-v-minimatic-inc-arwd-1989.