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Ex Parte Newco Mfg. Co., Inc.
Citation: 481 So. 2d 867Docket: 84-1339
Court: Supreme Court of Alabama; November 21, 1985; Alabama; State Supreme Court
Defendant Newco Manufacturing Company, Inc. petitioned the Alabama Supreme Court for a writ of mandamus to compel Circuit Judge Stuart A. Leach to either quash service of process against Newco or grant summary judgment based on failure to state a cause of action. The underlying case, initiated by Patricia E. Smith for the wrongful death of her husband, James David Smith, involved an accident in Knoxville, Tennessee, where Smith was injured by a falling grit blast machine while employed by Southern Railway Company. Initially, the complaint named Southern, the Pangborn Company, and several fictitious defendants; Newco was added later as a manufacturer of component parts. Newco's motions to dismiss for lack of in personam jurisdiction and for summary judgment based on Tennessee's statute of repose were denied, prompting the mandamus petition. Newco argued it lacked sufficient minimum contacts with Alabama to justify jurisdiction. However, the court found that Newco's dealings with Alabama customers, including sales through an independent representative and shipping orders, established enough contacts to deny the motion to dismiss. The court noted that the lawsuit did not arise from Newco’s activities in Alabama since the defective clamps were not sold there and the accident occurred out of state, indicating a lack of 'specific' jurisdiction under the relevant legal standards. The determination of whether Alabama has general jurisdiction over Newco hinges on the existence of sufficient contacts between Newco and Alabama to satisfy due process. The essential inquiry involves assessing whether these contacts are continuous and systematic enough to justify jurisdiction. Newco has engaged in a consistent business presence in Alabama through independent representatives and communications, achieving annual sales between $65,000 and $85,000 from January 1979 to December 1984, totaling 2,000 transactions. These contacts are intentional, indicating that Newco could reasonably foresee needing Alabama's legal protections while conducting business there. Newco benefits from conducting sales in Alabama and must accept the corresponding legal responsibilities. Jurisdiction cannot be evaded simply due to a lack of physical presence in Alabama, as modern commerce often occurs through mail and electronic means. The courts have consistently ruled that purposeful direction of business activities towards another state is sufficient for establishing personal jurisdiction, irrespective of physical contacts. Additionally, in the matter of Newco's motion for summary judgment concerning the Tennessee products liability act's statute of repose, the court emphasizes that mandamus cannot be used as a substitute for appeal under Alabama law. Newco's attempt to utilize mandamus for this purpose is denied, with the court citing established precedents.