Ex parte LORD & SON CONSTRUCTION, INC., a Florida corporation.
(In re ALABAMA ELECTRICAL WHOLESALERS, INC., an Alabama corporation v. LORD & SON CONSTRUCTION, INC., a Florida corporation and State Electric Service, Inc., a Florida corporation).
Supreme Court of Alabama.
Charles H. McDougle, Jr. of Ramsey, Baxley & McDougle, Dothan, for petitioner.
Edward M. Price, Jr. of Farmer, Price, Smith & Weatherford, Dothan, for respondents.
PER CURIAM.
Lord & Son Construction, Inc. ("Lord & Son"), seeks a writ of mandamus directed to the Honorable Denny L. Holloway, Circuit Judge for the Twentieth Judicial Circuit of Alabama, ordering him to quash the return of service of the summons based on lack of personal jurisdiction.
State Electric Service, Inc. ("State Electric"), a Florida subcontractor, contracted with Lord & Son, a general contractor incorporated in Florida, to do the electrical installation on the juvenile detention center construction project in Panama City, Florida, for which Alabama Electrical Wholesalers, Inс. ("Alabama Electrical"), an Alabama corporation, supplied the electrical materials. Pursuant to a request from Alabama Electrical, the president of State Electric wrote Lord & Son and asked that checks jointly payable to it and Alabama *457 Electrical be issued until the project was fully paid.
Thereafter, Lord & Son issued several such jointly payable checks; however, it subsequently wrotе a check payable to State Electric alone, representing the balance due. After a written inquiry by Alabama Electrical concerning this, the president of Lord & Son wrote Alabama Electrical, stating, "I have reviewed the past due bill owed to you by State Electriс on one of your jobs.... If ... this matter [is not resolved] by the 25th of April, Lord & Son will do so not later than 30 April 88."
Alabama Electrical sued State Electric for its failure to pay and sued Lоrd & Son for breach of its alleged agreement to issue joint checks. Lord & Son's motion to dismiss for lack of personal jurisdiction was denied and is the basis of its petition for writ of mandamus.
The pivotal issue is whether Lord & Son has sufficient contacts with Alabama for our "long arm" rule to apply and establish personal jurisdiction. Lord & Son argues that because it has no corporate offices in Alabama, does not advertise or solicit business in this state, has nо bank accounts or mailing addresses in Alabama, and does not maintain any telephone listings here, there is no evidence of the minimum cоntacts necessary for jurisdiction.[1] It further argues that there was no agreement between it and Alabama Electrical to issue only joint chеcks.
From the correspondence among all three parties, it appears that this is not the case. Rather, by issuing checks payаble jointly to Alabama Electrical and State Electric, Lord & Son constructively agreed to the proposed arrangement; its aсquiescence to the agreement is evidenced by the checks themselves. Moreover, by its letter to Alabama Electrical acknowledging State Electric's past due bill and promising to resolve the matter no later than April 30, 1988, Lord & Son voluntarily undertook responsibility for pаyment to Alabama Electrical of the balance due.
These actions by Lord & Son are sufficient indications that it could reasonably have anticipated being sued in Alabama. "`[T]he foreseeability that is critical to due process analysis ... is that the defendant's conduct and connection with the forum state are such that he should reasonably anticipate being haled into court there.'" Alabama Waterproofing Co. v. Hanby,
We find that Lord & Son's dealings with Alabama Electrical arе sufficient to establish the requisite minimum contacts. "The fundamental question is, did the defendant act in such a manner that he reasonably ought to anticipate the direct consequences of his actions to be felt by another person residing in another state?" Duke v. Young,
WRIT DENIED.
JONES, ADAMS, STEAGALL and KENNEDY, JJ., concur.
HORNSBY, C.J., concurs specially.
HORNSBY, Chief Justice (concurring specially).
I agree that the writ is due to be denied. Plaintiff's claim is based on an alleged contract with the defendant. For the purposes of the decision as to whether there is personal jurisdiction, we must assume that there is a contract. The assertion of personal jurisdictiоn arises out of the defendant's conduct that relates to that contract; therefore, the forum seeks to assert "specific jurisdiction" over the out-of-state defendant.[2]Burger King Corp. v. Rudzewicz, *458
"Jurisdiction is proper, ... where the contacts proximately result from actions by the defendant himself that create a `substantial connection' with the forum State. McGee v. International Life Insurance Co., supra, 355 U.S. [220], at 223, 78 S.Ct. [199] at 201 [2 L.Ed.2d 223 (1957)]; see also Kulko v. California Superior Court, supra, 436 U.S. [84], at 94, n. 7, 98 S.Ct. [1690] at 1698, n. 7 [56 L.Ed.2d 132 (1978)]. Thus where the defendant `deliberately' has engaged in significant activities within the State, Keeton v. Hustler Magazine, Inc., supra, 465 U.S. [770], at 781, 104 S.Ct. [1473] at 1481 [79 L.Ed.2d 790 (1984) ], or has created `continuing obligations' between himself and residents of the forum, Travelers Health Ass'n. v. Virginia, 339 U.S. [643], at 648, 70 S.Ct. [927] at 929 [94 L.Ed. 1154 (1950) ], he manifestly has availed himsеlf of the privilege of conducting business there, and because his activities are shielded by `the benefits and protections' of the forum's laws it is рresumptively not unreasonable to require him to submit to the burdens of litigation in that forum as well.
"Jurisdiction in these circumstances may not be avoided merely because the defendant did not physically enter the forum State. Although territorial presence frequently will enhance a potential defendant's affiliation with a State and reinforce the reasonable foreseeability of suit there, it is an inescapable fact of modern commercial life that a substantial amount of business is transacted solely by mail and wire communications across state lines, thus obviating thе need for physical presence within a State in which business is conducted. So long as a commercial actor's efforts are `purрosefully directed' toward residents of another State, we have consistently rejected the notion that an absence of physicаl contacts can defeat personal jurisdiction there."
Id.
Petitioner cites Delro Industries, Inc. v. Evans,
I agree that Alabama does have personal jurisdiction with respect to Lord & Son and, therefore, that the writ is properly denied.
NOTES
Notes
[1] Lord & Son had performed a contraсt on one military installation here prior to the present controversy, but that work is unrelated to this case.
[2] The defendant did perform work on a military installation in Alabama pursuant to an unrelated contract. Otherwise, no other contacts with Alabama are reflected in the limited record.
