Personal Jurisdiction in a Breach of Contract Action

Personal Jurisdiction in a Breach of Contract Action

          The personal jurisdiction issue has been heavily litigated in Florida courts. Accordingly, there is a boatload of precedent out there regarding whether or not the court may impose jurisdiction in accordance with (1) the Florida Long Arm statute (Fla. Stat. §48.193) and (2) the Due Process clause of the 14th Amendment. What follows is a brief summary of the procedure for challenging personal jurisdiction, and a list of factors that the Court weighs in its analysis relating to same.

 

Procedure for Challenging Personal Jurisdiction

          So long as Plaintiff has pled prima facie facts supporting the exercise of personal jurisdiction, a Defendant who moves to dismiss the case is required to provide a sworn affidavit setting out facts in support of said motion.[1] This affidavit generally relates to business contacts with the foreign state (or lack thereof). The burden of pleading then shifts to the Plaintiff, who then must provide its own affidavit in support of the exercise of personal jurisdiction.[2] If the Plaintiff’s and Defendant’s affidavit can be “reconciled,” (i.e., if they do not conflict with respect to the underlying facts) the Court may make a ruling based upon same. However, if the affidavits conflict (i.e., there are disputed issues of material fact relating to personal jurisdiction), the Court should allow the parties to conduct limited discovery, prior to holding an evidentiary hearing on the issue.[3] Determinations as to personal jurisdiction are reviewed de novo. Note that any attempt to affirmatively litigate the case beyond the personal jurisdiction issue will result in waiver of Defendant’s personal jurisdiction objections.[4]

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[1] See e.g., Venetian Salami Co. v. Parthenais, 554 So. 2d 499, 502-503 (Fla. 1989); World Metals, Inc. v. Townley Foundry and Machine Co., 585 So. 2d 1185 (Fla. 5th DCA 1991).

[2] Venetian Salami Co. v. Parthenais, 554 So. 2d 499, 502-503 (Fla. 1989).

[3] Id.

[4] Fla. Stat § 48.193 (3).

Factors in Court's Analysis

       This so-called "two step" personal jurisdiction analysis actually relies upon one large set of non-dispositive factors, which generally weigh the Defendant's business contacts with the forum state. These factors include:

(1) whether officers of the Defendant corporation traveled to the state of Florida in furtherance of their business activities[2];

(2) whether sales demonstrations were made in Florida[3];

(3) whether the agreement itself was executed in Florida[4];

(4) whether the contract between the parties encompassed delivery of the goods to Florida[5];

(5) whether the Defendant physically brought the goods to Florida in order to sell them[6];

(6) whether the Defendant possesses and maintains a license to do business in Florida[7];

(7) whether the Defendant serves clients in Florida[8];

(8) the amount of revenue obtained as a result of Defendant’s sales in Florida[9];

(9) the number of years the Defendant has been selling its product in Florida[10];

(10) the number of calls made to Florida for the purpose of making sales[11];

(11) whether the Defendant advertised in Florida[12];

(12) whether the Defendant has a physical presence in Florida (e.g., offices, PO Box, telephone, employees, bank account, or property)[13]; 

 Note that in the context of internet sales cases, an additional set of factors is employed in the court's analysis.

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[1] Future Tech. Today, Inc. v. OSF Healthcare Sys., 218 F. 3d 1247, 1249 (11th Cir. 2000).

[2] World Metals, Inc. v. Townley Foundry and Machine Co., 585 So. 2d 1185 (Fla. 5th DCA 1991)

[3] Plantation-Pioneer Industries Corp v. Omega Insurance Co., 689 So. 2d 1293 (Fla. 4th DCA 1997)

[4] Atlantis Marina & Yacht Club, Inc. v. R&R Holdings, Inc., 766 So. 2d 1163 (Fla. 3d DCA 2000)

[5] World Metals, Inc. 585 So. 2d 1185; see also Homeway Furniture Co. of Mount Airy, Inc. v. Nance, 822 So. 2d 533, 536 (Fla. 2d DCA 2002) (holding that there was no personal jurisdiction where furniture company arranged to have a third party carrier ship goods to Florida).

[6] Atlantis Marina & Yacht Club, Inc., 766 So. 2d 1163.

[7] Pathman v. Grey Flannel Auctions, Inc., 714 F. Supp 2d 1318, 1324 (S.D. Fla. 2010)

[8] Id. 

[9] Id.; see also Homeway Furniture Co. of Mount Airy, Inc., 822 So. 2d at 536.

[10] Travel Opportunities of Fort Lauderdale, Inc. v. Walter Karl List Management, Inc., 726 So. 3d 313 (Fla. 4^th DCA 1998);

[11] Pathman, 714 F. Supp 2d at 1324.

[12] Id.

[13] Travel Opportunities of Fort Lauderdale, Inc., 726 So. 3d 313; Plantation-Pioneer Industries Corp., 689 So. 2d 1293; Fla. Stat. 48.193(1)(a)