Lead Opinion
McNeese Title, LLC, a Florida limited liability company owned and operated by Richard McNeese, and Richard McNeese (hereinafter referred to collectively as “McNeese”), and Peggy S. Owens petition this Court for a writ of mandamus, direct
I. Factual and Procedural Background
This dispute arose out of Atchison’s purchase of two residential lots in the Villa Lago subdivision (“the subdivision”), which was originally a 14-acre tract of land in the Golf and Beach Resort of Sandestin, Florida. On September 29, 2005, Atchison signed two documents entitled “Sandestin Villa Lago Subdivision Home Purchase and Sale Agreement” (“the agreements”) for the purchase of two lots, namely, lots 61 and 81. Each of the agreements required Atchison to pay to McNeese Title a “non-refundable deposit” of $15,000. The seller was identified as C-D Jones & Company, Inc. (“C-D Jones”), of Destín, Florida. The agreements stated, in pertinent part:
“3. Payment of Purchase Price. The purchase price specified above shall be paid as follows:
“(a) Deposit. Upon complete execution of this Agreement, [Atchison] shall deposit with Seller’s escrow agent, McNeese Title, LLC, whose address is ... Destín, Florida ... (the ‘Agent’), that Deposit described above to be held until closing in a federally insured non-interest bearing account until closing.
“(b) Remainder. The remaining Purchase Price for the Lot along with [Atchison’s] closing costs shall be paid by cashier’s check or wire transfer of funds to Seller at the Closing described here.
“4. Closing. The closing of the Lot (the ‘Closing’) shall be held at the office of [McNeese Title], on such a date as the parties may hereafter agree, but in no event later than the Closing Date described above (unless extended pursuant to Paragraph 26 hereof), time being of the essence of this Agreement....
“26. Contingencies to Close. This contract and the obligations of the parties herein are specifically contingent upon the following:
“(b) The successful closing of all Lots within the subdivision on or before the Closing Date. In the event the closings of all Lots do not occur on or before the Closing Date, the Closing Date may be extended, at the option of Seller, for a period not to exceed sixty (60) days.”
(Emphasis added.)
According to Atchison, these agreements were sent to him by the “developers,” who, he says, “developed, marketed and sold the lots” in the subdivision. Atchison’s brief, at 4. He identifies those developers as CD Jones and 331 Partners, LLC.
Eventually, Atchison sued a number of individuals and entities, including C-D Jones, 331 Partners, McNeese, and Owens, alleging that he had suffered damage as a result of activities conducted by C-D Jones and 331 Partners after the closing. Essentially, the counts against McNeese and Owens
McNeese and Owens moved to dismiss the action for lack of personal jurisdiction. See Rule 12(b)(2), Ala. R. Civ. P. Their motions were accompanied by affidavits addressing the limited extent of their contacts with Alabama. The trial court denied the motions to dismiss; this mandamus petition followed.
II. Discussion
“[A] petition for a writ of mandamus is the proper device by which to challenge the denial of a motion to dismiss for lack of in personam jurisdiction.” Ex parte Dill, Dill, Carr, Stonbraker & Hutchings, P.C.,
Jurisdiction over out-of-state defendants is acquired pursuant to Rule 4.2(b), Ala. R. Civ. P., which provides, in pertinent part:
“An appropriate basis exists for service of process outside of this state upon a person or entity in any action in this state when the person or entity has such contacts with this state that the prosecution of the action against the person or entity in this state is not inconsistent with the constitution of this state or the Constitution of the United States.... ”
In other words, “[t]his rule extends the personal jurisdiction of Alabama courts to the limit of due process under the United States and Alabama Constitutions.” Hiller Invs., Inc. v. Insultech Group, Inc.,
According to McNeese and Owens, At-chison has failed to show that jurisdiction over them is proper in this case. Specifically, they argue:
“[I]n this case, [Atchison’s] Complaint and Amended Complaint are completely devoid of any factual allegations that would establish personal jurisdiction over the [Petitioners]. Instead, the Complaint and Amended Complaint contain only generic allegations that thePetitioners are subject to personal jurisdiction in Alabama, with no supporting factual allegations. Indeed, the Complaint and Amended Complaint contain no factual allegations whatsoever as to any contacts between the Petitioners and the State of Alabama. Based on this fact alone, Petitioners believe [At-chison’s] claims against them are due to be dismissed for want of personal jurisdiction, regardless of any other eviden-tiary submissions.”
Petition, at 9. We agree.
“This Court has explained the appropriate analysis and the parties’ respective burdens on a personal-jurisdiction issue as follows. ‘The plaintiff has the burden of proving that the trial court has personal jurisdiction over the defendant. Ex parte Covington Pike Dodge, Inc.,904 So.2d 226 (Ala.2004).’ J.C. Duke & Assocs. Gen. Contractors, Inc. v. West,991 So.2d 194 , 196 (Ala.2008).
“ ‘ “ ‘In considering a Rule 12(b)(2), Ala. R. Civ. P., motion to dismiss for want of personal jurisdiction, a court must consider as true the allegations of the plaintiff’s complaint not controverted by the defendant’s affidavits, Robinson v. Giarmarco & Bill, P.C.,74 F.3d 253 (11th Cir.1996), and Cable/Home Communication Corp. v. Network Productions, Inc.,902 F.2d 829 (11th Cir.1990), and “where the plaintiffs complaint and the defendant’s affidavits conflict, the ... court must construe all reasonable inferences in favor of the plaintiff.” Robinson,74 F.3d at 255 (quoting Madara v. Hall,916 F.2d 1510 , 1514 (11th Cir.1990)).’ ”
“‘Wenger Tree Serv. v. Royal Truck & Equip., Inc.,853 So.2d 888 , 894 (Ala.2002) (quoting Ex parte McInnis,820 So.2d 795 , 798 (Ala.2001)). However, if the defendant makes a prima facie evidentiary showing that the Court has no personal jurisdiction, “the plaintiff is then required to substantiate the jurisdictional allegations in the complaint by affidavits or other competent proof, and he may not merely reiterate the factual allegations in the complaint.” Mercantile Capital, LP v. Federal Transtel, Inc.,193 F.Supp.2d 1243 , 1247 (N.D.Ala.2002) (citing Future Tech. Today, Inc. v. OSF Healthcare Sys.,218 F.3d 1247 , 1249 (11th Cir.2000)). See also Hansen v. Neumueller GmbH,163 F.R.D. 471 , 474-75 (D.Del.1995) (“When a defendant files a motion to dismiss pursuant to Fed. R.Civ.P. 12(b)(2), and supports that motion with affidavits, plaintiff is required to controvert those affidavits with his own affidavits or other competent evidence in order to survive the motion.”) (citing Time Share Vacation Club v. Atlantic Resorts, Ltd.,735 F.2d 61 , 63 (3d Cir.1984)).’
“Ex parte Covington Pike Dodge, Inc.,904 So.2d 226 , 229-30 (Ala.2004) (emphasis added; footnote omitted).”
Ex parte Excelsior Fin., Inc.,
However, when the complaint fails to allege any jurisdictional basis, “there is nothing in the complaint ... that the court must consider as true and that therefore places [any] burden on [the defendant] to controvert by affidavit.” Excelsior,
Atchison does not direct us to any paragraphs of the complaint, as amended, that he contends specifically allege jurisdiction. However, according to Atchison, his complaint alleged that “the McNeese defen
Although it is true that personal jurisdiction may, in some cases, be obtained by “imputing conduct to an alleged coconspirator who has personally performed no overt act in Alabama,” Ex parte Reindel,
In that connection, Atchison’s first amended complaint avers, in pertinent part:
“39. On November 3, 2005, after McNeese Title, McNeese and Owens, actually and/or constructively received Atchison’s money, to-wit no less than $683,589, C-D Jones and 331 Partners engaged in a collusive transaction whereby 331 Partners purported to sell lots in Villa Lago Subdivision, including Lots 61 and 81, to C-D Jones in exchange for the money previously transferred by Atchison and the other buyers of Villa Lago lots, (hereinafter referred to as the ‘331/C-D Jones Land Transfer’).
“40. At the time of the 331/C-D Jones Land Transfer, 331 Partners and C-D Jones were partners, joint ventur-ers and co-conspirators in a fraudulent scheme to sell the lots to Atchison and other similarly situated buyers under circumstances constituting a fraudulent transfer under the Uniform Fraudulent Transfers Act.
“42. The transfer made through the 331/C-D Jones Land Transfer was done with knowledge and/or participation by Defendants ... McNeese Title, McNeese and Owens, and with the actual intent to hinder, delay or defraud Atchison, who was then or subsequently became a Creditor of Debtors 331 Partners, C-D Jones and/or McNeese Title.
“57. The transfer of assets from C-D Jones to Defendant McNeese Title was done with knowledge and/or participation by Defendant McNeese Title and with actual intent to hinder, delay or defraud Atchison, who was then or subsequently became a Creditor of C-D Jones.
“58. After McNeese Title received the assets of C-D Jones and/or Atchi-son, McNeese and/or Owens received all or part of said assets without payment of reasonably equivalent value through dividends and/or distributions from McNeese Title.
“59. In the case of each distribution by McNeese Title to Defendant McNeese and/or Owens the dividend(s) or distribution(s) were done under circumstances constituting a fraudulent transfer under the Uniform Fraudulent Transfers Act.
“60. At the time of each distribution by McNeese Title to McNeese and/orOwens, said Defendant(s) was an Insider of McNeese Title and the dividend(s) or distribution(s) which was received by-said Defendant(s) was made and accepted under circumstances constituting a fraudulent transfer under the Uniform Fraudulent Transfers Act.”
(Emphasis added.)
These paragraphs contain no jurisdictional averments. To be sure, ¶ 40 does use the terms “partners,” “joint ventur-ers,” and “co-conspirators.” However, the allegations in these paragraphs are directed solely to the merits of the claims against C-D Jones and 331 Partners, that is, they do not purport to identify a basis for jurisdiction. In other words, they allege no “ ‘overt acts within the forum taken in furtherance of the conspiracy.’ ” Matthews v. Brookstone Stores, Inc.,
Moreover, ¶ 40 fails even to mention McNeese. Indeed, Atchison states in his brief in support of the petition: “Because this Petition involves only the challenge to jurisdiction filed by McNeese Title, LLC, Richard McNeese and Peggy Owens, ... discussion will be limited to their involvement in the sale of the lots with references to other parties only as needed.” Atchi-son’s brief, at 2 n. 1. However, without integrating the specific activities of McNeese and Owens with those of the entities of which they are alleged to be agents or coconspirators, it is difficult — if not impossible — to impute the conduct of such others to McNeese and Owens. Thus, the complaint contains no specific averments of conspiracy or agency.
Similarly, although it mentions McNeese in passing, ¶ 39 is devoted to allegations concerning C-D Jones and 331 Partners. The allegations are directed entirely to the merits of the claims against those defendants and do not purport to reveal how the selling of the lots in the subdivision, which is located in Florida, might form a basis for jurisdiction in Alabama over any defendant.
Paragraphs 42 and 57 aver in virtually identical terms that Richard McNeese or McNeese Title knew about, and participated in, the alleged sales of lots/transfer of assets in order to “defraud Atchison.” They do not allege that such sales or transfer — or any other relevant activity— occurred in Alabama. The averments in ¶¶ 58-60 are similarly restricted to the merits of the case, that is, they merely allege that distributions were made from McNeese Title to Richard McNeese and/or Owens “under circumstances constituting a fraudulent transfer under the Uniform Fraudulent Transfers Act.” Thus, they are irrelevant for jurisdictional purposes.
Paragraphs 61-82 of the complaint, which are not quoted above, are as juris-dictionally insignificant as the paragraphs just discussed. Paragraphs 69-71 aver that Richard McNeese made certain misrepresentations to Atchison but fail to disclose the mode or location of those conversations. Likewise, ¶¶ 72-73 aver that Atchison executed a power of attorney in favor of McNeese but allege no specifics regarding the location or manner of that transaction. In essence, ¶¶ 61-82 merely purport to describe the manner in which McNeese allegedly breached “contractual obligations” to Atchison. Conspicuously absent are references to the situs of any relevant conduct of McNeese or to the identity of the party initiating the transactions. Such factors would be material for jurisdictional purposes, as this Court has noted. See, e.g., Hiller Invs., Inc. v. Insultech Group, Inc.,
In short, Atchison’s first amended complaint failed to allege any basis for the exercise of in personam jurisdiction over McNeese and Owens and, therefore, “place[d] [no] burden on [McNeese and Owens] to controvert [anything] by affidavit.” Ex parte Excelsior,
III. Conclusion
For the above-stated reasons, we grant the petition and direct the trial court to dismiss the claims against McNeese and Owens based on a lack of in personam jurisdiction.
PETITION GRANTED; WRIT ISSUED.
Notes
. 331 Partners, LLC, is a Florida limited liability company, having its primary place of business in Mobile.
. According to Atchison, Owens is an officer or employee of McNeese Tide.
Concurrence Opinion
(concurring in the result).
The main opinion begins its analysis by quoting the following argument made by McNeese Title, LLC, and Richard McNeese (hereinafter referred to collectively as “McNeese”) and Peggy S. Owens:
“ ‘[T]he Complaint and Amended Complaint contain no factual allegations whatsoever as to any contacts between the Petitioners and the State of Alabama. Based on this fact alone, Petitioners believe [James E. Atchison’s] claims against them are due to be dismissed for want of personal jurisdiction, regardless of any other evidentiary submissions.’ ”
The main opinion embraces the notion that a complaint that fails to allege grounds for personal jurisdiction must be dismissed based merely upon this fact. In so doing, I believe it recognizes a new basis for dismissal of a claim, one that does not fit within either Rule 12(b)(2) . or Rule 12(b)(6), Ala. R. Civ. P.
Rule 12(b)(6) provides that a complaint should be dismissed if it “fail[s] to state a claim” cognizable under Alabama law. That is not what is at issue here. The question of in personam jurisdiction is a question that, instead, is governed by Rule 12(b)(2).
Unlike Rule 12(b)(6), Rule 12(b)(2) does not entitle a defendant to dismissal upon a plaintiffs “failure to state” personal jurisdiction, but only if there is in fact a lack of personal jurisdiction. Accordingly, for a defendant to be entitled to a dismissal there must at least be some evidentiary showing sufficient to satisfy the court that, as a matter of fact, Alabama courts do not
The purpose of this Court’s holding in Ex parte Covington Pike Dodge, Inc.,
Instead, Covington Pike Dodge addressed the issue of which would prevail as between mere allegations in a complaint, on the one hand, and sworn averments presented in opposition thereto by a defendant, on the other hand. Covington Pike Dodge and its progeny do not address the question of the appropriate outcome when a defendant has made no averments in support of a motion under Rule 12(b)(2) but, instead, merely alleges a lack of personal jurisdiction or, as here, seeks to rely merely on the fact that the complaint contains no allegations in favor of personal jurisdiction. Similarly, this Court’s decision in Ex parte Excelsior Financial, Inc.,
Quoting Covington Pike Dodge,
I note that later in the Excelsior opinion the Court states that it is “do[ing] something Excelsior has failed to do — analyzing] the [plaintiffs’] complaint for specific allegations that relate to personal jurisdiction over Excelsior.”
The main opinion contains the following statement:
“[W]hen the complaint fails to allege any jurisdictional basis, ‘there is nothing in the complaint ... that the court must consider as true and that therefore places [any] burden on [the defendant] to controvert by affidavit.’ Excelsior,42 So.3d at 104 (defendant need not present evidence of absence of jurisdiction when the complaint contains no jurisdictional averments).”
It also is important to note the narrow focus of the Court’s statement. The statement is made in the context of the Court’s having first determined that the defendant had joined the issue of in personam jurisdiction by submitting an affidavit sufficient to constitute a “prima facie evidentiary showing” that there were not sufficient contacts between the defendant and the State of Alabama to confer jurisdiction. Bearing in mind the principle, as stated earlier, that, even when a defendant has made an prima facie evidentiary showing, “a court must consider as true the allegations of plaintiffs complaint not controverted by the defendant’s affidavits,”
The Court then expressly considered whether, in light of the prima facie evi-dentiary showing otherwise contained in Excelsior’s affidavits, there was any other sufficient basis for personal jurisdiction alleged in the complaint that was not defeated by evidentiary submissions of the defendant. The Court noted one other potential basis suggested by the complaint in this regard, namely, the allegation in the complaint of a conspiracy. The Court, however, found that the allegation of conspiracy was “devoid of the requisite specificity.”
“[T]he allegation of conspiracy in the complaint is devoid of the requisite specificity. ... Consequently, there is nothing in the complaint dealing with conspiracy that the court must consider as true and that therefore places the burden on Excelsior to controvert by affidavit.”
In the next paragraph of its opinion, the Excelsior Court simply restates and summarizes what it has theretofore explained in more detail:
“Excelsior argues extensively that the evidence presented by the parties does not show any action by Excelsior purposefully directed toward Alabama and that its contacts with Alabama resulted from the unilateral activity of third persons. However, the complaint, other than the allegations of agency, which were refuted without contradiction fromthe Tillises, does not contain any allegations that Excelsior, independent of an agency relationship, purposefully directed its actions toward Alabama. In the absence of such allegations, we need not analyze the evidence as Excelsior suggests.”
Thus, I disagree with the holdings in the main opinion that a defendant is entitled to the dismissal of a complaint against it based merely upon a motion asserting the absence of sufficient jurisdictional allegations in the complaint and that, in order to obtain such a dismissal, a defendant has no burden of initially coming forward with an evidentiary showing of a lack of personal jurisdiction. Notwithstanding the disagreement with these holdings, I can agree with the result reached in this particular case because it is not one in which these particular holdings are necessary to the result. Specifically, this is not a case in which the defendant has failed to make a prima facie evidentiary showing of lack of personal jurisdiction over it.
In point of fact, the complaint and amended complaint in this case actually do contain “generic allegations that the Petitioners are subject to personal jurisdiction in Alabama.”
The question in this case, as it was in Excelsior, then becomes whether the plaintiff, Atchison, put on contrary evidence. As in Excelsior, he did not. It therefore falls to this Court, as it did to the Court in Excelsior, to consider whether there are allegations in the complaint (1) that have not specifically been rebutted by the evidentiary submission of the defendants and, therefore, are “left standing” and (2) that are of a nature sufficient to
. As the defendants, McNeese and Owens, themselves put it in their petition in this case, "once the defendant makes a prima facie showing that the Court lacks personal jurisdiction, the plaintiff must then substantiate any jurisdictional allegations with competent proof.” Petition, at 8, citing Ex parte Citizens Prop. Ins. Corp.,
. Although somewhat general in nature, the allegations in this regard in the complaint are indeed "factual allegations.” I therefore cannot agree with the assertion by McNeese and Owens as quoted in the main opinion that " ‘the Complaint and Amended Complaint contain no factual allegations whatsoever as to any contacts between the Petitioners and the State of Alabama.' ”
