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Elizabeth Iron Works, Inc. v. Kevon Construction Corp.
382 A.2d 636
N.J.
1978
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*1 in such judicial process. Participation ticket undermines the makes it that much by municipal prosecutor disposition from suspended more is stand grievous. Respondent the fur- one and until year of law practice period ordered. ther Court. So order Hughes and For suspension year one Justices —Chief Pashman, Sullivan, Clifford, Schreiber and Justices Handler —6.

Opposed—-None.

ORDER P. Mt. is ORDERED that ROBERT WEISHOEE It year law for one Holly suspended from the practice Court, February further effective and until order of 1978; it is and further hereby and is

ORDERED that ROBERT WEISHOEE be P. restrained and law enjoined during practicing of- his and it is further period suspension; with all comply regulations ORDERED that respondent Disbarred, of the Supreme Governing Resigned Suspended Attorneys. WORKS, INC., PLAINTIFF-RESPONDENT,

ELIZABETH IRON CORP., v. KEVON CONSTRUCTION DEFENDANT-APPEL- LANT. Argued January 27, November 1977- Decided 1978. Mr. Mark D. Larner the cause for argued appellant *2 Budd, Larner, Kent, Gross, Rosenbaum, & (Messrs. Picillo Henry Mr. A. attorneys; Larner on the brief).

Mr. Ernest the Prupis cause argued for respondent Weltchek, Ritz, & (Messrs. Prupis attorneys). The for judgment is affirmed substantially

Per Curiam. the reasons in Di- expressed the of the opinion Appellate vision. J., that a foreign The holds dissenting.

Clieeord, Jersey New corporation may subject jurisdiction to of the courts no with where that contact whatsoever corporation has than a this state other contract the purchase New seller. based goods Jersey Jurisdiction plaintiff, more, such a tenuous with upon connection, strikes nothing “* * * me as offensive traditional notions fair play International justice”, Washing substantial Shoe Co. v. ton, Ed. 90 L. are, which all, after the ultimate of con tests g.,E. Moon Carrier Reliance stitutionality. Super. (Law 1977).

The Division Appellate summarizes opinion accurately jurisdictional the undisputed facts. Plaintiff corporation, steel, supplier structural principal has its of business place in Township, Union New Defendant Jersey. Pennsylvania is a as corporation acting contractor on a general construction in project Pennsylvania. no It owns property in this state. It has no here. offices It no solicits business in Néw Jersey. Not one of its officers or stockholders employees even one lives here. No entered New business Jersey any on purpose defendant’s While behalf. it was in the engaged Pennsylvania construction defendant project, a tele- placed phone call to with plaintiff reference to the possible purchase of specially manufactured castellated steel Following beams. initial telephone this communication plaintiff sent an em- execution defendant’s

ployee Pennsylvania to secure with At associated any person did order. no time purchase to this relating for any purpose defendant enter Jersey transaction. are present where foreign corporations

Traditionally, sub- state, willingness in have evidenced our courts where, ject -corpora- to suit in New due to them state, with interests tion’s contacts are of such magni- a forum for the providing litigation de- the nonresident burden on outweigh tude as a balancing here defend. Under such coming fendant courts have extended approach, demonstrable where, any the absence despite circumstances state, connection of nonresident defendant with court policy considerations strike persuaded *3 a For in of forum providing litigation. balance favor instance, a a where implicates regulatory policy transaction a state, of New may this be deemed to have Jersey “special in of interest” the transaction justifying imposition had jurisdiction on a nonresident defendant who had Gallos, & J. W. Co. v. 47 contact here. Sparks slightest -;1 295, N. J. securities) 303 (1966) (purchase sale McGee v. International 355 see U. S. Life d. 2 199, 201, 78 S. Ed. 2d 226 (1957) (insurance). L. in a liability Likewise cases forum state has products in its interest from the protective shielding residents strong a local goods of defective and in providing dangers within the forum who injured residing consumers state be without sufficient resources travel to defendant’s may their claims. v. Floral place operation litigate Roche Rental N. Corp., Super. 555, 95 J. 562 Div. 1967), (App. J. 26 o.b., N. 51 (1968). aff’d 1 Altbough broadly regulated by transactions in securities are vari enactments, e.g., seq.; ous Federal 15 U. S. C. et § 77a 15 U. S. C. seq., regulation et remains a § 78a there residue of state as found seq.; in the Uniform Securities Law. N. J. S. A. 49:3-47 et 15 cf. 78bb(a). §C. In the case, however, none of present foregoing policy considerations obtains. Although has some in in contracts which a have economic significant impact terest Mecure, within state, this Avdel v. Corp. J. that interest does not rise to the level of a “special

interest” as so justify imposition over a defendant whose sole with connection is a transaction for the single purchase goods.

no special regulatory interest in or the manufacture distribu tion castellated steel beams in this ease. Additionally, resolution of the substantive contractual issue in instant case, which for part the most on the of a validity turns price modification,2 will not affect New interest in Jersey’s pro tecting its citizens from unsafe products. Einally, unlike typical consumer, corporate plaintiff does not appear without the financial be resources to travel to a neighboring Kislak, state vindicate its claims. I. See Inc. v. Trum Park, Inc., bull Shopping 150 N. J. Super. 96, 105 (App. Heitner, 1977); n.19, S. 186 U. cf. Shaffer 2580, 53 L. Ed. 2d (1977). The typical even, insurance or company in these times, manu litigious facturer of consumer goods may view the costs of litigation as an expense almost inevitable hav doing business with other ing contacts states. Not so nonresident construc tion company purchases which from a goods corporate plain transaction; tiff in it anticipate should have to it that will subject the added litigation expenses which it defending foreign state has not entered and *4 with which it has no other connection. dispute price underlying 2 To the extent that involves a modifica tion, implicating may only factual issues that be resolved on the testimony

basis of located in witnesses and both Pennsylvania, be cannot said be more con litigation. venient forum for See McGee v. International Life 223, 220, 223, 199, 201, 2 355 78 S. Ct. L. Ed. 2d (1957). 226 336 of courts to juris- the recent extend willingness

Despite over in a of circum- variety diction nonresident defendants not a stances, this should wholesale abandonment signal trend to the by minimum connections the nonresident defendant a forum As jurisdiction. state as Chief Justice prerequisite noted: aptly Warren the eventual that trend heralds [I]t a to assume is mistake jurisdiction personal of state all on the restrictions courts. demise oí 1360, 416, Vanderbilt, 418, S. 77 S. Ct. 354 U. Vanderbilt v. See guarantee 1456, a more 1459. Those restrictions are than L. Ed. 2d They litigation. immunity a con- are or distant inconvenient respective power sequence on of the limitations territorial defending foreign tribu- minimal the burden States. However upon may nal, do so unless had be called he a defendant not prerequisite that with that State are the “minimal contacts” power over him. its exercise Deckla, v. [Hanson 357 U. S. 1228, 1238, 2 L. Ed. (1958).] 2d by principles resort only issue which be resolved may

An for a calls inherently and justice” of “fair substantial play defendant, its through exercise. If this subjective highly if it had any had entered representatives, one,3 than this “economic” additional contacts other jurisdiction very well deemed might imposition Mecure, Avdel v. Corp. See process meet due requirements. plus at 272-73 contacts entrance supra, (economic justified jurisdic representatives imposing defendant’s by any that New Jersey But I not believe maintains tion). do parties by and therefore never is 3 Since the issue was raised Carrara, Court, properly 69 N. J. see Dresner before impedi express opinion regarding the burdens I no imposi might result from interstate commerce which ments on corporation sole contacts with tion of on a whose Erlanger Mills v. Cohoes “economic” in nature. See state are 1956) ; Developments Mills, (4th 2d Cir. Fibre 239 F. Law, Jurisdiction, L. 73 Harv. Rev. 983-87 State (1960). *5 “special interest” in the economics before transaction us -which renders it fair and to exercise jurisdic- reasonable tion over defendant. Finally, inasmuch as find it I from this indistinguishable Research,

ease, Lab., I would overrule Resin Gemini Inc. v. Roller 105 N. Corp., Super. (App. 1969).

I vote to reverse and reinstate the trial court’s judgment favor of defendant. Hughes For Justice Moun and Justices affirmance —Chief

tain, Sullivan, Pashman, Schreiber and Handler —6. For reversal—Justice Clieeobb —1. JERSEY, PLAINTIFF-RESPONDENT,

STATE OF NEW RICHO, HARVEY SIMS AND LEROY DEFEN DANTS-AP PELLANTS. Argued January 31, October 1977—Decided 1978.

Case Details

Case Name: Elizabeth Iron Works, Inc. v. Kevon Construction Corp.
Court Name: Supreme Court of New Jersey
Date Published: Jan 27, 1978
Citation: 382 A.2d 636
Court Abbreviation: N.J.
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