Atchison v. IPC Industries, Inc.
82 So. 3d 670
Ala.2011Background
- Atchison bought two residential lots (lots 61 and 81) in Villa Lago subdivision under two purchase agreements requiring a non-refundable deposit of $15,000 each.
- The seller identified was C-D Jones & Company, Inc., in Destin, Florida, with McNeese Title, LLC handling escrow and closing.
- The agreements provided that closing would occur by a specified date, with time of the essence and a potential 60-day extension if all lots did not close by the Closing Date (¶26(b)).
- Atchison later sued multiple parties, including McNeese, Owens, C-D Jones, and 331 Partners, alleging misrepresentations and fraudulent conduct related to the subdivision’s sale/closing activities.
- McNeese Title and Owens moved to dismiss for lack of in personam jurisdiction under Rule 12(b)(2), supported by affidavits denying substantial Alabama contacts; the trial court denied the motions.
- The Alabama Supreme Court granted the mandamus petition, directing dismissal for lack of personal jurisdiction due to absence of sufficient Alabama-directed activity or contacts by McNeese Title and Owens.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Alabama courts have personal jurisdiction over McNeese Title and Owens | Atchison alleges conspiratorial and other conduct by McNeese Title and Owens that targeted Alabama residents. | McNeese Title and Owens show a prima facie lack of Alabama contacts; complaint lacks jurisdictional allegations tying defendants to Alabama. | Yes; lack of in personam jurisdiction; dismissal required. |
| Whether conspiracy-based allegations can support jurisdiction | Allegations show conspiratorial conduct among Florida entities connected to Alabama transactions. | Conspiracy allegations lack the specificity required to establish jurisdiction. | No; conspiracy theories insufficient to confer jurisdiction. |
| What is the governing standard for Rule 12(b)(2) when jurisdictional facts are challenged | Plaintiff bears burden to prove jurisdiction absent lack of evidence. | Defendant may prevail if prima facie showing of no jurisdiction is made; plaintiff must counter with evidence. | Plaintiff must substantiate jurisdictional allegations with competent proof when defendant makes prima facie showing; otherwise dismissal is appropriate. |
Key Cases Cited
- Ex parte Covington Pike Dodge, Inc., 904 So.2d 226 (Ala.2004) (explains burden shifting when defendant challenges jurisdiction with affidavits)
- Excelsior Fin., Inc. v. Ex parte, 42 So.3d 96 (Ala.2010) (plaintiff must controvert prima facie showings; specifics depend on allegations)
- Ex parte Excelsior Fin., Inc., 42 So.3d 96 (Ala.2010) (clarifies burden when complaint lacks jurisdictional allegations)
- Ex parte First Western Bank, 898 So.2d 701 (Ala.2004) (mandamus to challenge denial of dismissal for lack of jurisdiction)
- Ex parte Dill, Dill, Carr, Stonbraker & Hutchings, P.C., 866 So.2d 519 (Ala.2003) (establishes mandamus as proper vehicle for challenging denial of jurisdiction)
- Hiller Invs., Inc. v. Insultech Group, Inc., 957 So.2d 1111 (Ala.2006) (discusses the significance of the first-contact factor in jurisdiction)
