Butler v. Beer Across AmericaButler v. Beer Across America
ORDER
The Court has before it the August 6, 1999 motion of defendants Beer Across America, Merchant Direct, and Shermer Specialties (collectively “Beer Across America”) to dismiss the present action for lack of personal jurisdiction. 1 Pursuant to the Court’s October 8, 1999 order, the motion came under submission on December 17,1999.
On June 8, 1999, plaintiff Lynda Butler initiated the present action by filing a complaint in the Circuit Court of Shelby County, Alabama. The complaint asserts a claim under thе Civil Damages Act, section 6-5-70 of the Alabama Code, arising from the sale of beer to plaintiffs son, Hunter Butler, by the defendants via the Internet.
(See
Compl. ¶¶ 1-2.) The Civil Damage Act
2
provides for a civil action by the
The issue of personal jurisdiction presented in this case has been briefed extensively by both parties and the Court has received numerous evidentiary submissions. First, on August 12, 1999 defendants filed the August 9, 1999 affidavit of Louis A Amoroso. On August 30, 1999 plaintiff submitted evidence in opposition to the motion to dismiss. 3 Defendants then filed an initial brief in support of their motion to dismiss on September 10, 1999. Plaintiff responded on September 13, 1999 with a brief in opposition to dismissal 4 and on October 4, 1999 with a supplemental brief. Oral argument was held at the Court’s regular motion docket on October 8, 1999, following which the Court allowed limited discovery on the issue of personal jurisdiction. {See Oct. 12, 1999 Order.) Following a period of limited discovery, plaintiff made evidentiary submissions on November 15, 1999. 5 Next defendants filed a supplemental brief in support of their motion to dismiss on November 29, 1999, and, finally, on December 10, 1999 рlaintiff filed a response to the defendants’ supplemental brief with attached excerpts from plaintiffs November 15, 1999 eviden-tiary submissions. Defendants’ motion is now ripe for consideration.
The burden of establishing personal jurisdiction over a nonresident defendant is on the plaintiff.
See Robinson v. Giarmarco & Bill, P.C.,
Questions of personal jurisdiction require an application of general legal principlеs to the particular facts contained in the complaint and in the parties’ evidentiary submissions.
See Alexander Proudfoot Co. World Hqtrs. L.P. v. Thayer,
Having framed the issue, the Court turns to the multi-part analysis implicated by this question. The first part of the analysis requires a consideration of state law because the reach of a federal diversity court’s jurisdictional power over a nonresident defendant may not exceed the limits allowed under state law.
See Robinson,
As one arm of the due process analysis, the court initially must determine whether at least minimum contacts exist between the defendant and the jurisdiction.
See Madara,
In addition to minimum contacts, due process mandates a consideration of the fairness in forcing the defendant to litigate in a foreign forum.
See id.; Cable/Home Communication v. Network Productions, Inc.,
The Court’s initial inquiry concerns the reach of Alabama’s long arm statute, which this Court must interpret as would an Alabama state court.
See id.
at 256-57.
A person has sufficient contаcts with the state when that person ... otherwise having some minimum contact with this state and, under the circumstances, it is fair and reasonable to require the person to come to this state to defend an action ... so long as the prosecution of the action against a person in this state is not inconsistent with the constitution of this state or the Constitution of the United States.
Regarding the minimum contacts element of due process analysis, plaintiff asserts that defendants’ contacts with the state of Alabama are sufficient for either general or specific jurisdiction. To suppоrt general jurisdiction, the plaintiff cites not only the sale to her son but also the defendants’ sales (in Illinois) to other Alabama residents as well as the sale of beer to defendants by two Alabama brewers through a non-party Illinois wholesaler. However, the plaintiff has not offered any competent evidence to seriously controvert the defendants’ averments that they are not registered to do business in Alabama; that they own no property in the state; that they maintain no offices in the state; that they have no agents in Alabama; that their key personnel have never even visited the state; and that they do not place advertisement with Alabama media outlets (except for what nationally placed advertisements may reach the state) or engage in any other significant promotions targeting the state, which would rise to such a level as would justify an exercise of general jurisdiction by this state’s сourts. What plaintiff has offered is simply not sufficient to conclude that Beer Across America can be brought before an Alabama tribunal for any claim that any plaintiff may bring.
See Helicopteros Nacionales de Colombia v. Hall,
Although specific jurisdiction presents a different question, the ultimate answer is the same. Alabama courts have found sufficient minimum contacts to support
in personam
jurisdiction over nonresident defendants in other actions related to out-of-state sales of goods to Alabama residents for use in this state, but the contаcts in those cases differed both in kind and extent from the
de minimis
connections in the instant case.
See Lowry v. Owens,
The fact that many companies have established virtual beachhеads on the In
Furthermore, considerations of “fair play and substantial justice” do not support personal jurisdiction over the nonresident defendants in this action. See
International Shoe Co. v. Washington,
Notes
. On September 1, 1999 the defendants filed a supplemental motion to dismiss premised upon the Commerce Clause and the Twenty-First Amendment to the United States Constitution. Given the disposition of Beer Across America's initial motion to dismiss, the supplemental motion need not be considered.
. The full text of-the Alabama Civil Damages Act reads as follows:
Either parent of a minor, guardian, or a person standing in loco parentis to the minor having neither father nor mother shall have a right of action against any person who unlawfully sells or furnishes spiritousliquors to such minor and may rеcover such damages as the jury may assess, provided the person selling or furnishing liquor to the minor had knowledge or was chargeable with notice or knowledge of such minority. Only one action may be commenced for each offense under this section.
.Plaintiff submitted an invoice from defendant Merchant Direct, a copy of the Something’s Brewing newsletter, and printed copies of pages from www.beeramerica.com.
. Attached to the motion as exhibits werе copies of the same evidence submitted on August 30, 1999.
. Plaintiff submitted as Exhibit A the November 3, 1999 deposition of Louis A. Amoroso with attached deposition exhibits and as Exhibit B a number of invoices and correspondence with two Alabama brewers.
. According to the sales invoice and the shipping documents, the beer was essentially sold F.O.B. seller, with the carrier acting as the buyer's agent. The sales invoice and shipping documents also correctly note that ownership of the goods passed to plaintiff's son upon tender to the carrier, which is consistent with both Alabama's and Illinois's versions of the U.C.C., providing that title passes at the time and place of shipment when the contract does not require the seller to make delivery at the destination. See
. Beer Across America does engage in national advertising, but such placements cannot be said to target any particular market simply because that advertising reaches a particular state.
See Seymour By and Through Seymour v. Bell Helmet Corp.,
. Although the sale to plaintiff's son purported to enroll him into a "club” that would send additional, monthly shipments of specially selected lagers and ales, the terms of sale clearly reveal that any future commitment was purely illusory as plaintiff's son was free at any time to terminаte his "club” membership without penalty. In reality, plaintiff purchased and received a single shipment of beer and had the non-binding option to make additional, future purchases.
. This transfer of venue is premised upon