Williams v. General Motors Corp.

573 F. Supp. 577, 1983 U.S. Dist. LEXIS 12404
CourtDistrict Court, E.D. Arkansas
DecidedOctober 24, 1983
DocketLR-C-83-497
StatusPublished
Cited by2 cases

This text of 573 F. Supp. 577 (Williams v. General Motors Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. General Motors Corp., 573 F. Supp. 577, 1983 U.S. Dist. LEXIS 12404 (E.D. Ark. 1983).

Opinion

MEMORANDUM OPINION

ROY, District Judge.

Pending now before the Court is the motion of defendant Friendly Chevrolet Co. (Friendly) to dismiss the case against it based upon a lack of jurisdiction. The issue presented is whether there are sufficient contacts between Friendly and the State of Arkansas so as to justify the exercise of jurisdiction over Friendly by this Court.

The essential facts for purposes of the motion are as follows. Rickie Williams, a Jacksonville resident, while overseas on military duty, ordered a car from General Motors Overseas Distribution Corporation, through an overseas dealer, to be delivered to Friendly in Dallas, Texas, for plaintiffs pick-up. The car Rickie Williams ordered was to contain a Z-28 package, but, upon arriving in Dallas to pick up the car at Friendly, he was told that his car had either been sold or never had been delivered. Apparently the Z-28 package had been left out inadvertently. Friendly made an attempt to sell Rickie Williams another car which had less “extras” for the same price, but Mr. Williams rejected the attempt. As a result of the alleged breach, Rickie Williams brought suit in this court against General Motors Corporation (GMC), a foreign corporation authorized to do business in the State of Arkansas, and Friendly, a Texas corporation with its principal place of business being in Dallas, Texas. Friendly filed its motion to dismiss stating that it is a corporation doing business in Texas; that it does not do business in Arkansas; that it does not have an agent for service of process in Arkansas; that it has not acted directly or by an agent as to a cause of action arising from the transaction of business in Arkansas or from contracting to supply services or things in Arkansas; that it has not caused tortious injury by an act or omission in Arkansas; and that it does not regularly solicit business or engage in any other persistent course of conduct in Arkansas or derived substantial revenue from goods consumed or services in Arkansas.

Plaintiff in his response appears to justify the Court’s exercise of jurisdiction over Friendly by relying on the Arkansas Long Arm Statute, Ark.Stat.Ann. § 27-2502, and by also alleging that Friendly was an agent or arm of GMC who dealt with the plaintiff and that the designation of Friendly as the pick-up agency for the transaction made it clear that Friendly would be completing a substantial contract for presumably a substantial profit for Friendly with a resident of Arkansas. He further contends that Friendly’s attempt to comply with the terms of the contract were sufficient contacts to justify in personam jurisdiction over Friendly.

Although the Arkansas Long Arm Statute is to be liberally construed, Martin v. Kelly Electric Co., 371 F.Supp. 1225 (E.D.Ark.1974), and the Supreme Court of Arkansas has given the Act in question an expansive sweep, Dreyfus Co., Inc., v. Royster Co., 487 F.Supp. 531 (E.D.Ark.1980), there must still be some evidence upon which a prima facie showing of jurisdiction may be found to exist. Scullin Steel Co. v. National Railway Utilization Corp., 676 F.2d 309 (8th Cir.1982); Jeanway Industries, Inc. v. Knudson Manufacturing Company, Inc., 533 F.Supp. 678 (W.D.Ark. 1981).

Although plaintiff cites Ark.Stat.Ann. § 27-2502(B) in his brief to support the exercise of jurisdiction, his description of the statute refers to § 27-2502(C)(l)(d). 1 *579 In order to exercise jurisdiction under this section, tortious injury must occur in Arkansas. Pennsalt Chemical Corp. v. Crown Cork & Seal Co., 244 Ark. 638, 426 S.W.2d 417 (1968). Based upon the facts as presented by the plaintiff, the situs of the alleged tort and tortious injury occurred in Dallas, Texas, not Arkansas, when he went to pick up the car. Jurisdiction cannot therefore be exercised over Friendly under Ark.Stat.Ann. § 27-2502(C)(1)(d).

The plaintiff then relies on the assertion that Friendly was an agent or arm of GMC and since GMC dealt with the plaintiff, the plaintiff asks the Court to impute GMC’s contacts to Friendly. Even if the Court were to assume, for purposes of this motion, that Friendly was an agent of GMC in its dealings with plaintiff, the Court would still not be able to say that it could exercise jurisdiction over Friendly. The plaintiff has cited no case, and the Court could find none, which would allow the Court to exercise jurisdiction over an agent by virtue of the principal’s contacts. It is true that § 27 — 2502(C)(1) allows the Court to exercise jurisdiction over one who acts directly, or by an agent, but this provision would only enable the Court to exercise jurisdiction over the principal on whose behalf the agent acted, based upon the conduct of the agent as it falls within the provisions of the Long Arm Act. The statute does not authorize exercise of jurisdiction over an agent based upon the conduct of his principal as it falls within the provisions of the Long Arm Act. The actions of an agent acting for a disclosed principal bind only the principal and not the agent, subjecting only the principal to jurisdiction on the basis of contact with the forum. First National Bank of Minneapolis v. White, 420 F.Supp. 1331, 1336 (D.Minn. 1976).

Further, there are no allegations that GMC acted as agent for Friendly.

Plaintiff next asserts that the designation of Friendly as the pick-up agency for this transaction made it clear that Friendly would be completing a substantial contract for presumably a substantial profit for Friendly with a resident of Arkansas, and therefore by Friendly’s attempt to comply with the terms of that contract there were sufficient contacts to justify in personam jurisdiction. Plaintiff has not cited any provision of the Long Arm Act to support the exercise of jurisdiction based upon the above conduct. Therefore, the Court can only assume he is trying to assert jurisdiction under Ark.Stat.Ann. § 27-2502(C)(1)(a), transacting any business in this state; or Ark.Stat.Ann. § 27-2502(C)(1)(b), contracting to supply services or things in this state. The Court holds that Friendly’s contacts were insufficient to support either, but even if they were, they were insufficient contacts for purposes of the Due Process Clause of the Fourteenth Amendment.

In the present case, according to the pleadings now before the Court, the only evidence of contacts between Friendly and the State of Arkansas is as follows:

Friendly’s business was designated as the place where plaintiff was to pick up the car.

When plaintiff arrived in Dallas at Friendly’s business and the car that plaintiff had ordered was not there, Friendly attempted to sell him another car.

Plaintiff gave notice of this dilemma and demand to GMC and Friendly.

According to GMC, they were advised that on November 3, 1982, Friendly offered to find a Z-28 car to plaintiff’s liking, but plaintiff rejected the offer.

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Bluebook (online)
573 F. Supp. 577, 1983 U.S. Dist. LEXIS 12404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-general-motors-corp-ared-1983.