Glenn v. Student Loan Guarantee Foundation
Docket: CA 95-552
Court: Court of Appeals of Arkansas; April 24, 1996; Arkansas; State Appellate Court
The Student Loan Guarantee Foundation of Arkansas filed a lawsuit against a Tennessee resident, seeking to collect on defaulted student loan notes. The appellant challenged the court's personal jurisdiction, leading to a default judgment against him. The appellant later moved to set aside the default judgment, again citing lack of personal jurisdiction, but the trial court denied this motion. On appeal, the appellant argued that the default judgment was void due to the trial court's lack of personal jurisdiction. The court examined the relevant Arkansas statute, Ark. Code Ann. 16-4-101(C)(1), which allows for jurisdiction when a person transacts business in the state. The court referenced the due process requirements established in International Shoe Co. v. Washington, which necessitate minimum contacts with the forum state. The analysis focused on five factors: the nature and quality of contacts with Arkansas, the quantity of those contacts, the relation of the cause of action to the contacts, the forum state's interest in providing a venue, and the convenience of the parties. The appellant submitted an affidavit affirming his residence in Tennessee and that he had no business ties to Arkansas, asserting that the loans were executed and signed in Tennessee, with payments mailed to Arkansas. The appellee's argument for jurisdiction rested on the fact that the loans were made by an Arkansas bank and guaranteed by an Arkansas corporation. However, the court determined that these connections were insufficient, as they were based solely on the use of interstate mail and banking facilities, which does not satisfy due process requirements for asserting jurisdiction. The court concluded that the trial court lacked personal jurisdiction over the appellant, reversed the default judgment, and dismissed the case.