Cornerstone Investment Funding, LLC v. Painted Post Group, Inc.
188 So. 3d 904
Fla. Dist. Ct. App.2016Background
- Cornerstone Investment Funding, LLC (Virginia) borrowed $300,000 from Arnold S. Goldin, Inc.; promissory note signed by parties in Virginia and Florida.
- Goldin assigned the note to Painted Post Group, Inc. (Post Group), a Palm Beach County entity.
- Post Group sued Cornerstone in Palm Beach County when payments stopped. A predecessor judge granted summary judgment dismissing non-resident defendants for lack of jurisdiction but allowed Post Group to amend.
- Post Group filed an amended complaint against only Cornerstone for breach of contract, alleging payments were to be made to Goldin’s Palm Beach address.
- Cornerstone moved to dismiss for lack of personal jurisdiction; after an evidentiary hearing (only Arnold Goldin testified), the trial court denied the motion, finding minimum contacts.
- The Fourth District reversed, holding Cornerstone lacked sufficient minimum contacts with Florida and directing dismissal without prejudice to refiling in an appropriate forum.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Florida courts have long-arm jurisdiction over Cornerstone for breach of contract | Post Group: breach (failure to pay in Florida) satisfies Fla. Stat. §48.193 long-arm for contracts | Cornerstone: mere nonpayment to a Florida address does not establish sufficient contacts | Long-arm statute prong satisfied (breach in Florida) but that alone does not meet due-process minimum-contacts requirement |
| Whether Cornerstone has sufficient minimum contacts with Florida to satisfy due process | Post Group: payments were to be made to Goldin in Palm Beach; foreseeability of suit in Florida | Cornerstone: no purposeful availment or other Florida-directed acts beyond alleged payment location | Insufficient minimum contacts; due process not satisfied, so personal jurisdiction improper |
| Whether prior summary-judgment order barred relitigation of jurisdiction (collateral estoppel) | Cornerstone: earlier summary judgment on jurisdiction should bind successor judge | Post Group: precursor order granted leave to amend; not final | Collateral estoppel inapplicable because prior order permitted amendment and was not a final judgment |
| Remedy | Post Group: proceed in Florida | Cornerstone: dismissal | Court: reverse and remand to grant motion to dismiss without prejudice to refiling in appropriate forum |
Key Cases Cited
- Venetian Salami Co. v. Parthenais, 554 So. 2d 499 (Fla. 1989) (two-prong test for personal jurisdiction: long-arm statute and minimum contacts/due process)
- World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286 (1980) (minimum contacts and foreseeability for being haled into court)
- Smith Architectural Grp., Inc. v. Dehaan, 867 So. 2d 434 (Fla. 4th DCA 2004) (nonpayment under a contract requiring payment in Florida can satisfy long-arm statute)
- Taskey v. Burtis, 785 So. 2d 557 (Fla. 4th DCA 2001) (factors for minimum contacts include foreseeability and purposeful availment)
- deMco Techs., Inc. v. C.S. Eng'd Castings, Inc., 769 So. 2d 1128 (Fla. 3d DCA 2000) (mere failure to pay to a Florida address is insufficient for due-process minimum contacts)