Cengage Advantage Books: Business Law Today, The Essentials 10th Edition by Roger LeRoy Miller

تمرين 6

Southern Prestige Industries, Inc. v. Independence Plating Corp.
FACTS Independence Plating Corporation (the defendant) is a New Jersey corporation that provides metal-coating services. Its only office and all of its personnel are located in New Jersey. It does not advertise out of state, but it had a longstanding business relationship with Kidde Aerospace in North Carolina (filing under the name Southern Prestige Industries, Inc.). For almost a year, Independence and Kidde engaged in frequent transactions. On November 18, 2008, Kidde initiated an action for breach of contract in a North Carolina state court, alleging defects in the metal-plating process carried out by Independence. Independence filed a motion to dismiss for lack of personal jurisdiction, which the trial court denied. Independence appealed, arguing that it had insufficient contacts with North Carolina for the state to exercise jurisdiction.
ISSUE Did Independence Plating Corporation have sufficient minimum contacts with North Carolina for the state to exercise personal jurisdiction?
DECISION Yes. The North Carolina appellate court affirmed the trial court's decision. Independence had sufficient minimum contacts with North Carolina to satisfy the due process of law requirements necessary for the state to exercise jurisdiction.
REASON In determining whether minimum contacts existed, the court looked at several factors, including the number of contacts and their nature and quality, as well as the interests of North Carolina, the forum state. In this case, thirty- two separate purchase orders were exchanged between the two parties in a period of less than twelve months. Independence sent invoices totaling more than $21,000, and these invoices were paid from Southern's corporate bank account. "North Carolina has a single 'manifest interest' in providing the plaintiff with 'a convenient forum for redressing injuries inflicted by' [the] defendant, an out-of-state merchant."
CRITICAL THINKING-Ethical Consideration Was it fair for the North Carolina courts to require a New Jersey company to litigate in North Carolina? Explain.