Crossing Park Properties, LLC v. JDI Fort Lauderdale, LLC
316 Ga. App. 471
| Ga. Ct. App. | 2012Background
- JDI Fort Lauderdale, LLC is an Illinois LLC not authorized to do business in Georgia.
- Crossing Park Properties, LLC and Glen and Joan Hammer sued JDI in Georgia for fraud-related claims tied to a 2006 Florida real estate transaction.
- The transaction involved a Georgia broker and a loan package, with documents sent to Glen Hammer in Georgia for execution.
- Hammer signed loan-related documents in Georgia; JDI sent closing documents to Georgia and relied on a guaranty and subordination tied to Georgia-resident Hammer.
- A key disputed element is an “Undisclosed Agreement” between JDI and Archer that altered risk; it was executed in Florida.
- The trial court dismissed the Georgia action for lack of personal jurisdiction, and appellants appeal, arguing Georgia courts have jurisdiction over JDI.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Georgia has personal jurisdiction over JDI | Hammer asserts JDI purposefully availed itself in Georgia via broker, Georgia documents, and Georgia-resident guaranty. | JDI contends lack of purposeful contacts with Georgia; documents were not initiated by JDI and Georgia actions are incidental. | Yes; Georgia has jurisdiction under OCGA 9-10-91(1). |
Key Cases Cited
- Innovative Clinical &c. Svcs. v. First Nat. Bank &c., 279 Ga. 672 (Ga. 2005) (limits due process while recognizing intangible and remote contacts as basis for jurisdiction)
- Paxton v. Citizens Bank &c., 307 Ga. App. 112 (Ga. App. 2010) (three-part minimum contacts test for long-arm jurisdiction)
- First Nat. Bank &c. v. Innovative Clinical &c. Svcs., 280 Ga. App. 337 (Ga. App. 2006) (guaranties linked to forum contacts can establish jurisdiction)
- Robertson v. CRI, 267 Ga. App. 757 (Ga. App. 2004) (substantial effects in forum may sustain jurisdiction even without physical presence)
- Noorani v. Sugarloaf Mills &c., 308 Ga. App. 800 (Ga. App. 2011) (full concurrence on due process and personal jurisdiction considerations)
- Booksing v. Holley, 210 Ga. App. 869 (Ga. App. 1993) (claims brought in forum despite foreign origin of some contracts)
- Home Depot Supply v. Hunter Mgmt., 289 Ga. App. 286 (Ga. App. 2008) (burden on defendant to show lack of personal jurisdiction)