Williams v. Institute for Computational Studies at Colorado State University

355 S.E.2d 177, 85 N.C. App. 421, 1987 N.C. App. LEXIS 2615
CourtCourt of Appeals of North Carolina
DecidedMay 5, 1987
Docket8614SC1036
StatusPublished
Cited by23 cases

This text of 355 S.E.2d 177 (Williams v. Institute for Computational Studies at Colorado State University) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Institute for Computational Studies at Colorado State University, 355 S.E.2d 177, 85 N.C. App. 421, 1987 N.C. App. LEXIS 2615 (N.C. Ct. App. 1987).

Opinions

PARKER, Judge.

The sole issue to be decided in this appeal is whether the trial court erred in denying ICS’s motion to dismiss plaintiffs’ claims for lack of personal jurisdiction. As to the claim of plaintiff Williams, we hold that the court had jurisdiction over ICS and properly denied the motion. As to the claims of plaintiffs Aup-perle and Pyle, however, we hold there is no personal jurisdiction; therefore, the court below erred in denying the motion as to those claims.

The pleadings, affidavits, and documents in the record as well as the testimony of plaintiff Williams tend to show the following facts. The ICS Articles of Incorporation were executed by its incorporators 12 April 1984. Among the purposes of ICS listed in this document was to “[o]perate unique, state-of-the-art, high performance computation facilities in an optimum manner for the maximum benefit of its member institutions.” The prospectus for ICS listed eight institutions as having submitted letters of intent to participate as members, including the University of Michigan, the University of Houston, and Triangle Universities Computation Center (hereinafter, TUCO, a non-profit North Carolina corporation. Among those listed in the prospectus as chairmen of the five “technical committees” of ICS were plaintiff Williams of TUCC, as chairman of the “Operations and Services Committee,” plaintiff Aupperle of the University of Michigan, as chairman of the “Data Communications Committee,” and plaintiff Pyle of the University of Houston, as chairman of the “Research Committee.” In the ICS budget for the twelve months beginning 15 April 1984, under the heading “Fees,” was listed $25,000 for “Technical Committee Chairmen.”

[423]*423In January 1984, prior to the execution of the ICS Articles of Incorporation, a meeting of the committee chairmen, including plaintiffs, took place in Fort Collins, Colorado. Also in January 1984, the computer facilities at TUCC, in Research Triangle Park, North Carolina, were linked to the computer facilities at ICS, in Fort Collins, Colorado, by means of a “dedicated” telephone line installed by AT&T especially for that purpose.

Some time in April 1984, TUCC received from ICS a “Membership Agreement” providing that TUCC purchase a charter membership in ICS for $10,000. This document was signed under the heading “AGREED TO” by plaintiff Williams, in his capacity as president of TUCC, on 30 April 1984 in Durham, North Carolina. Plaintiff Williams then mailed this document to ICS in Fort Collins, Colorado, where the director of ICS signed the agreement under the heading “ACCEPTED By” on 5 May 1984.

In July 1984, there was a second meeting of the ICS committee chairmen, including plaintiffs, in Fort Collins. At this meeting, gaining funds for ICS from the National Science Foundation was discussed.

From 1 July 1984 to 30 June 1985, researchers and professors from various North Carolina universities made use of a Cyber 205 “supercomputer” located at ICS in Fort Collins through the line linking TUCC to ICS. Although TUCC received periodic invoices stating an “amount due” for this use of the ICS facilities, TUCC was not required to pay for the first 200 hours of computer time under the terms of its charter membership with ICS. During this period, TUCC’s North Carolina users used only about 70 hours of computer time. Plaintiff Williams testified that parties other than TUCC’s North Carolina users also used the TUCC facility to gain access to the ICS computer through the special AT&T line, although he could only say “with certainty” that the University of Houston had to come through the TUCC facility. He could not say the same “with as much certainty” as to the other institutions who were ICS members.

In April 1985, ICS sent TUCC a letter informing TUCC of the “revised sponsorship arrangement” for the upcoming year and asking TUCC to sign up for another year of membership at an increased rate. ICS also sent a follow-up reminder to TUCC, dated 5 June 1985, requesting information regarding TUCC’s intentions as [424]*424to membership renewal. TUCC did not respond. In a letter dated 3 June 1985, ICS requested that AT&T discontinue service on the dedicated long line circuit linking ICS to TUCC.

In order for our courts to exercise jurisdiction over the person of a nonresident defendant such as ICS, two criteria must be met: first, the court must have jurisdiction over the person of defendant under our State’s “long-arm” statute, and second, the exercise of jurisdiction must not violate the due process clause of the fourteenth amendment of the United States Constitution. Tom Togs, Inc. v. Ben Elias Industries Corp., 318 N.C. 361, 348 S.E. 2d 782 (1986); Miller v. Kite, 313 N.C. 474, 329 S.E. 2d 663 (1985). Once jurisdiction is challenged, plaintiff has the burden of proving prima facie that a statutory basis for jurisdiction exists. Marion v. Long, 72 N.C. App. 585, 325 S.E. 2d 300, disc. rev. denied, 313 N.C. 604, 330 S.E. 2d 612 (1985).

Defendant argues that there is no statutory long-arm jurisdiction over ICS pursuant to G.S. 55-145(a)(l). Our long-arm statute permits the courts of this State to exercise jurisdiction over the person of a properly-notified defendant when, inter alia, a special jurisdiction statute applies. G.S. 1-75.4(2). One such special jurisdiction statute is G.S. 55-145(a)(l) which provides:

(a) Every foreign corporation shall be subject to suit in this State, whether or not such foreign corporation is transacting or has transacted business in this State and whether or not it is engaged exclusively in interstate or foreign commerce, on any cause of action arising as follows:
(1) Out of any contract made in this State or to be performed in this State ....

From the record before this Court, the evidence was not, in our view, sufficient for the claims of plaintiffs Aupperle and Pyle to come within the purview of the long-arm statute. Williams testified at the hearing about the services he performed and where he entered into the contract; there is no similar evidence as to when Aupperle and Pyle entered into the contract, where their services were to be performed, and the nature of the services they were to render pursuant to the contract. Neither Aup-perle nor Pyle submitted affidavits or testified. Plaintiffs in their brief emphasize that the contract for consulting services was an [425]*425oral contract and concede that plaintiffs accepted the contract in different places. According to plaintiffs’ brief, “Plaintiffs were to provide this [consulting] service in their capacities as the chairmen of several advisory committees . . . The ICS prospectus listed these “advisory committees” under separate titles, including “Operations and Services,” to be chaired by plaintiff Williams, “Data Communications,” to be chaired by plaintiff Aup-perle, and “Research,” to be chaired by plaintiff Pyle. These separate titles indicate that the consulting services to be rendered by each of the plaintiffs were distinct in scope from the services to be rendered by the others. Plaintiffs’ complaint alleges that ICS owed to each plaintiff separately the sum of $5,000.

For a contract to be made in this State, the last act necessary to make it a binding obligation must be performed in this State. Leasing Corp. v. Equity Associates, 36 N.C. App. 713, 245 S.E. 2d 229 (1978).

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Williams v. Institute for Computational Studies at Colorado State University
355 S.E.2d 177 (Court of Appeals of North Carolina, 1987)

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Bluebook (online)
355 S.E.2d 177, 85 N.C. App. 421, 1987 N.C. App. LEXIS 2615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-institute-for-computational-studies-at-colorado-state-ncctapp-1987.