The dispositive issue in this case is whether the trial court erred in granting the defendant MidweSterling’s motion to dismiss for lack of personal jurisdiction.
Plaintiff Replacements, Inc. (Replacements) is a North Carolina corporation which buys and sells discontinued and active china, crystal, flatware, and collectibles. Defendant MidweSterling (MidweSterling) is a general partnership headquartered in Missouri which deals in sterling flatware, holloware, and other silverware. Replacements filed the complaint in this matter alleging causes of action against defendant MidweSterling for misappropriation of trade secrets under the North Carolina Trade Secrets Protection Act. Specifically, Replacements contends that in August 1997, MidweSterling came into possession of its suppliers list and used it to contact potential customers in North Carolina without the consent of Replacements. MidweSterling did not answer, but instead filed a motion to dismiss for lack of personal jurisdiction. The trial court granted MidweSterling’s motion to dismiss on 25 March 1998. Replacements appeals.
The determination of whether jurisdiction is statutorily and constitutionally permissible due to contact with the forum is a question of fact.
See Chadbourn, Inc. v. Katz,
The evidence presented to the trial court indicates that MidweSterling, by its own admission, mailed an advertisement to at least fifty North Carolina residents in August 1997. While MidweSterling denies appropriating Replacements’ trade secrets with the mass mailing, it does not deny that it directly solicited business in this state by mailing advertisement to residents of North Carolina. Additionally, Replacements submitted evidence that MidweSterling has had continual business and contractual business with Replacements prior to the August 1997 mass mailing, including (1) selling and shipping merchandise to Replacements in the amount of approximately $65,000.00; (2) purchasing merchandise from Replacements on at least ten occasions; (3) telephoning Replacements’ office in North Carolina on several occasions; (4) contracting with Replacements to participate in Replacements’ Star Supplier program, for which MidweSterling has paid $100.00 per year; and (5) maintaining with Replacements a supplier list of various patterns of silverware it is interested in purchasing. MidweSterling admits soliciting “virtually all” of its business through advertisements in nationally-distributed antique, home, interior and similar trade journals and magazines. Those journals and magazines are distributed in North Carolina and are available to North Carolina residents. MidweSterling also maintains a website, which allows residents throughout all the United States, including North Carolina, to place orders via internet access.
Following its examination of the evidence and oral arguments of counsel, the trial court made the following findings of fact:
[T]he plaintiff has offered no evidence to support that the alleged misconduct complained about in the Complaint occurred within the state of North Carolina, but that instead all of the evidence is *142 that the alleged conduct occurred outside the state of North Carolina, in the state of Missouri, the Court so finds as a fact, and therefore applies the heightened analysis required by the “general jurisdiction” cases[.]
[P]laintiff has not produced evidence of systematic and continuous contacts between the defendant and the forum state of North Carolina sufficient to support this Court’s exercise of personal jurisdiction over the defendant.
Based on these findings, the case was dismissed for lack of personal jurisdiction over the defendant.
In order for MidweSterling to be subject to personal jurisdiction in the case
sub judice,
North Carolina’s long-arm statute and the Due Process Clause of the United States Constitution must be satisfied.
Dillon v. Funding Corp.,
a. Solicitation or services activities were carried on within this State by or on behalf of the defendant; or
b. Products, materials, or thing processed, serviced or manufactured by the defendant were used or consumed, within this State in the ordinary course of trade.
N.C. Gen. Stat. § l-75.4(4)a, b (1996). Personal jurisdiction is also property in any action which:
a. Arises out of a promise ... by the defendant to perform services ... or to pay for services ... in this State . . .; or
b. Arises out of services . . . performed for the plaintiff by the defendant within this State . . .; or
c. Arises out of a promise, made anywhere ... by the defendant to deliver or receive within this State . . . things of value; or
d. Relates to goods ... shipped from this State by the plaintiff to the defendant on his order or direction; or
*143 e. Relates to goods, documents of title, or other things of value actually received by plaintiff in this State from the defendant....
N.C. Gen. Stat. § l-75.4(6)a-e (1996).
When personal jurisdiction is alleged to exist pursuant to the long-arm statute, the question of statutory authority collapses into one inquiry — whether the defendant has the minimum contacts with North Carolina necessary to meet the requirements of due process.
Murphy v. Glafenhein,
The United States Supreme Court has noted two types of long-arm jurisdiction: “specific jurisdiction,” where the controversy arises out of the defendant’s contacts with the forum state, and “general jurisdiction,” where the controversy is unrelated to the defendant’s activities within the forum, but there are “sufficient contacts” between the forum and the defendant.
Helicopteros Nacionales de Colombia, S.A. v. Hall,
With specific jurisdiction, the court must analyze the relationship among the defendant, the forum state, and the cause of action.
Buck
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v. Heavner,
In the present case, the controversy concerns MidweSterling’s alleged misappropriation of trade secrets under the North Carolina Trade Secrets Protection Act (Act). “Misappropriation” is defined in the act as “acquisition, disclosure, or use of a trade secret of another without express or implied authority or consent, unless such trade secret was arrived at by independent development, reverse engineering, or was obtained from another person with a right to disclose the trade secret.” N.C. Gen. Stat. § 66-152(1) (1992). The alleged misappropriation in the present case includes use of the trade secret information to address mail to at least fifty North Carolina suppliers soliciting their business. By its own admission, MidweSterling sent the mail in question, which was received in this state in August 1997. Therefore, the misappropriation, or use, concluded in North Carolina. If a defendant has “purposefully directed” activities towards the state’s residents, it has “fair warning” that it may be sued in this forum, and the assertion of specific jurisdiction is proper.
See Tom Togs, Inc.,
Here, the trial court determined that the alleged conduct occurred outside the state of North Carolina, in the state of Missouri, and therefore applied the “heightened analysis required by the ‘general jurisdiction’ cases.” Based on the meaning of misappropriation in the Act and evidence presented to the trial court, we disagree with this finding and the court’s ultimate conclusion. However, assuming arguendo that the controversy in this case did not arise from the contacts with this forum because the misappropriation of trade secrets occurred outside of North Carolina, we find that the exercise of general jurisdiction would be proper.
“General jurisdiction” may be asserted over the defendant even if the cause of action is unrelated to defendant’s activities in the forum as long as there are sufficient “continuous and systematic” contacts between defendant and the forum state.
Fraser v. Littlejohn,
In the present case, there are substantial forum-related minimum contacts on the part of the defendant. As discussed previously, MidweSterling has maintained systematic and continuous contacts with North Carolina since 1994 through its business relationship with Replacements, including purchases of approximately $65,000.00, participation in Replacements’ Star Supplier program, and maintenance of a supplier list with Replacements of patterns of silverware MidweSterling is interested in purchasing. MidweSterling has placed several phone calls to Replacements’ North Carolina headquarters
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regarding business transactions. It has purposely availed itself of the privilege of doing business here through direct mail to at least fifty residents and advertisements in journals which are circulated in North Carolina. It advertises on an internet website which is available to North Carolina citizens. If a defendant has “purposefully avail[ed] itself of the privilege of conducting activities within the forum State,” it has “thus invokfed] the benefits and protections of its laws.”
Hanson v. Denckla,
Based on the foregoing, we find controversy at issue arises from the contacts by MidweSterling in the state of North Carolina, which are sufficient to satisfy the requirements of our long-arm statute and the Due Process Clause. Therefore, the exercise of personal jurisdiction is proper. Competent evidence does not support the trial court’s findings of fact. Where a trial court’s finding of fact is not supported by competent evidence, “the corresponding conclusions of law are likewise erroneous.”
Ronald G. Hinson
Electric,
Inc. v. Union County Bd. of Educ.,
Reversed and remanded.
