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defendantjurisdictiontrialcorporationappellantappellee
defendantjurisdictiontrialcorporationdue processappellantappellee

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Vacu-Maid, Inc. v. Covington, 530 P.2d 137, 1974 OK CIV APP 20

Facts

The appellant, an Oklahoma corporation, manufactures built-in cleaning systems and sells them to distributors. The appellee, a North Carolina resident, agreed to distribute the systems after the appellant's agent solicited him. The appellee visited Oklahoma once to familiarize himself with the product, but all orders were placed via telephone and shipped directly to North Carolina. The appellant filed suit to recover $5,091.18 for unpaid accounts from 1968 to 1970, but the trial court dismissed the case for lack of jurisdiction.

Appellant's agent went to North Carolina on several occasions in an attempt to get appellee's corporation to sell appellant's systems. Eventually appellee agreed to do so and made a trip to Oklahoma to view appellant's plant and familiarize himself with the systems.

Issue

Did the trial court err in finding it did not have in personam jurisdiction over the nonresident defendant?

Did the trial court err in finding it did not have in personam jurisdiction over the nonresident defendant?

Rule

A nonresident is subject to in personam jurisdiction in the forum state if he has minimum contacts with that state, such that maintaining the suit does not offend traditional notions of fair play and substantial justice.

The only limitation placed upon a court in exercising in personam jurisdiction over nonresidents transacting any business in this state is that of due process.

Analysis

The court analyzed the nature of the buyer's contacts with Oklahoma, noting that the buyer did not actively participate in the business relationship and only visited the state once for product familiarization. The court concluded that the buyer's actions did not constitute sufficient minimum contacts to establish personal jurisdiction, as the seller initiated the relationship and the buyer's activities were primarily passive.

With these facts in mind, we think appellee Covington falls more nearly within the passive purchaser category, and the additional factor of the goods being shipped f.o.b. Ponca City is not sufficient to increase defendant's contacts above the ‘minimal’ level.

Conclusion

The court affirmed the trial court's dismissal of the case, holding that the buyer's activities did not meet the minimum contacts requirement for personal jurisdiction.

We hold that appellee's activities in Oklahoma are not sufficient to satisfy the minimum requirements of Constitutional due process, and the trial court therefore properly refused to exercise in personam jurisdiction over defendant.

Who won?

The appellee prevailed in the case because the court found that there was insufficient contact to establish personal jurisdiction over him.

The court feels that there has not been the necessary jurisdictional contact with the defendant, Joe Covington.

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