Cartwright v. Fuji Photo Film U.S.A., Inc.
312 Ga. App. 890
| Ga. Ct. App. | 2011Background
- Fuji and the Schoolers formed a broker agreement in 2000; Schoolers alleged Fuji owed them commission for Eckerd account.
- Robert Cartwright, a Fuji vice president, negotiated the broker agreement and secretly routed payments to Mindy Cartwright beginning 2001.
- Schoolers disclosed 2001–2002 payments totaling at least $90,000 to Mindy; Mindy provided little service in return.
- In 2003 Fuji terminated the broker agreement; the Schoolers filed suit in Fulton County asserting fraud and related claims.
- Fuji amended its complaint in 2010 to add the Cartwrights as defendants; discovery revealed concealment of financial interests by Cartwrights.
- Cartwrights moved to dismiss or transfer for improper venue; trial court denied, prompting appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Relation back and venue | Fuji contends relation back applies; claims arise from same facts. | Cartwrights argue nonresident status defeats venue; residence controls. | Relation back applied; venue analyzed under long-arm for nonresidents. |
| Constitutional venue for nonresidents | Venue proper in Fulton under long-arm and related theories. | Residence controls; after filing, transfer improper. | Constitutional venue exists under long-arm for nonresidents. |
| Long-arm jurisdiction and venue | Cartwrights participated in acts in Georgia; Fulton proper. | Nonresidents should be sued where they reside; Taylor County should be proper. | Fulton County proper under OCGA 9-10-93 and 9-10-91. |
| Relation-back effect on nonresident status at filing | Cartwrights knew of litigation and concealed facts; relation back applies. | Relates to time of filing; cannot override residence rule. | Relation back determines filing date; Cartwrights were nonresidents at that time. |
Key Cases Cited
- HD Supply v. Garger, 299 Ga. App. 751 (2009) (relation back and venue when adding parties)
- Goodman v. Vilston, Inc., 197 Ga. App. 718 (1990) (long-arm does not make nonresident a Georgia resident)
- Ford v. Olympia Skate Center, 213 Ga. App. 600 (1994) (relation back construed broadly)
- Kennestone Hosp. v. Hopson, 264 Ga. App. 123 (2003) (counterclaims related to original suit; cross-action rules)
- Pazur v. Belcher, 272 Ga. App. 456 (2004) (liberal construction of relation-back provisions)