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159 So. 3d 629
Ala.
2014
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Background

  • Tiffin Motorhomes sued Edgetech (now Quanex I.G. Systems) and others in Franklin County, Alabama, alleging defective Super Spacer (EPDM) used in insulated-glass windows caused failures and warranty costs.
  • Edgetech manufactured and sold Super Spacer in bulk to Thompson (a Michigan insulated-glass manufacturer); Thompson supplied completed insulated-glass units to Wynne (Alabama), which sold windows to Tiffin.
  • Edgetech moved to dismiss for lack of personal jurisdiction (Rule 12(b)(2)); the trial court denied the motion and Edgetech petitioned for mandamus to compel dismissal.
  • Edgetech submitted an affidavit showing limited contacts with Alabama: no offices or employees there, only two small customers (not for the product at issue), no direct sales to Wynne or Tiffin, and no targeting of Alabama; its sale was to Thompson in Michigan and involvement ended upon delivery.
  • Tiffin alleged Edgetech did business in Alabama, marketed through distributors/sales agents, and placed products into the stream of commerce, but it presented no evidence that Edgetech expected or targeted sales into Alabama.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
General jurisdiction — whether Edgetech's Alabama contacts are "continuous and systematic" to be "at home" in Alabama Edgetech has systematic/continuous contacts via production facility in Decatur (Quanex), marketing through distributors, and knowledge its products reach Alabama Edgetech is Ohio-based, no Alabama offices/employees, de minimis sales in Alabama, no physical presence, and sales at issue were to Michigan Thompson Not established — contacts were too limited and sporadic to support general jurisdiction; trial court erred in denying dismissal
Specific jurisdiction — whether Edgetech purposefully availed itself or targeted Alabama (stream-of-commerce) Edgetech placed Super Spacer into stream of commerce and knew products would reach Alabama; thus Alabama courts have specific jurisdiction Edgetech sold only to Thompson in Michigan, had no relationship with Thompson’s customers or Wynne/Tiffin, and lacked evidence of targeting or expectation that the product would be sold in Alabama Not established — plaintiff failed to show Edgetech purposefully availed itself of Alabama or expected sales there; specific jurisdiction lacking

Key Cases Cited

  • International Shoe Co. v. Washington, 326 U.S. 310 (established "minimum contacts" due process test)
  • World–Wide Volkswagen Corp. v. Woodson, 444 U.S. 286 (foreseeability alone insufficient for jurisdiction; purposeful availment required)
  • Burger King Corp. v. Rudzewicz, 471 U.S. 462 (purposeful availment and reasonableness factors for jurisdiction)
  • Goodyear Dunlop Tires Operations, S.A. v. Brown, 131 S. Ct. 2846 (general jurisdiction requires defendant to be "at home" in forum)
  • Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408 (limits on general jurisdiction)
  • Perkins v. Benguet Consol. Mining Co., 342 U.S. 437 (textbook general-jurisdiction example)
  • Asahi Metal Indus. Co. v. Superior Court, 480 U.S. 102 (stream-of-commerce jurisprudence and fractured opinions)
  • J. McIntyre Machinery, Ltd. v. Nicastro, 131 S. Ct. 2780 (plurality on stream-of-commerce and targeting; did not resolve split)
  • Ex parte DBI, Inc., 23 So. 3d 635 (Ala. 2009) (Alabama adoption of stream-of-commerce analysis to find specific jurisdiction)
  • Ex parte Lagrone, 839 So. 2d 620 (Ala. 2002) (prior Alabama case relying on stream-of-commerce facts)
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Case Details

Case Name: Ex parte Edgetech I.G., Inc. n/k/a Quanex I.G. Systems, Inc.
Court Name: Supreme Court of Alabama
Date Published: Jul 25, 2014
Citations: 159 So. 3d 629; 2014 WL 3700359; 1121291
Docket Number: 1121291
Court Abbreviation: Ala.
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    Ex parte Edgetech I.G., Inc. n/k/a Quanex I.G. Systems, Inc., 159 So. 3d 629