1. Development of the Exercise of Jurisdiction Over Nonresident Defendants.
Any analysis of the power of a forum’s courts to exercise in personam jurisdiction over a nonresident defendant must begin with the decision of the United States Supreme Court in Pennoyer v. Neff,
It was not until the decision in International Shoe Co. v. Washington,
A warning has been issued however to the states and their "long arm” reaction stimulated by International Shoe. In Hanson v. Denckla,
Having established the framework for a "minimum contacts” rule, the court was called upon to determine the sufficiency of a single act or transaction by the nonresident in the forum as the basis upon which to predicate in personam jurisdiction. In McGee v. International Life Ins. Co.,
From International Shoe’s “skeleton” and the subsequent "fleshing out” cases can be gleaned three "rules” by which to judge the power of a forum state to exercise jurisdiction over a nonresident defendant. They are (1) The nonresident must purposefully avail himself of the privilege of doing some act or consummating some transaction with or in the forum.
7
It is not necessary that the defendant or his agent be physically within the forum, for an act or transaction by mail may suffice.
8
A single event may be a sufficient basis if its effects within the forum are substantial enough to qualify under Rule 3; (2) The plaintiff must have a legal cause of action against the nonresident, which arises out of, or results from, the activity or activities of the defendant within the forum
9
; and (3) If (and only if
10
) the requirements of Rules 1 and 2
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are established, a "minimum contact” between the nonresident and the forum exists; the assumption of jurisdiction must be found to be consonant with the due process notions of "fair play” and "substantial justice.”
11
In other words, the exercise of jurisdiction based upon the "minimum contact” must be "reasonable.” And this test for "reasonableness” has frequently been analogized to that which is applicable in a forum non conveniens issue.
12
L. D. Reeder Contractors v. Higgins Industries, Inc., 265 F2d 768 (footnote 12); Kourkene v. American BBR, Inc., 313 F2d 769; Tyee Construction Co. v. Dulien Steel Products, Inc.,
On this analysis it is deduced that in order to subject a nonresident defendant to the forum’s jurisdiction, what must be considered is more than a mere determination that through purposeful actions the nonresident defendant has established a "minimum contact” with the forum and that a cause of action results therefrom. What is required is a "minimum contact” such that its use as the predicate for establishing in personam jurisdiction does not offend "traditional notions of fair play and substantial justice.” Several factors enter into this test for "reasonableness” but since the International Shoe test will vary with the quality and nature of the defendant’s activity with or in the forum, no inclusive catalog of "reasonable” factors is possible. We find however the list compiled by the Supreme Court of North Carolina in Byham v. National Cibo House Corp.,
2. Code Ann. § 24-113.1 (b) and Its Application.
Jurisdiction here is predicated upon Code Ann. § 24-113.1, which provides in its relevant part: "A court of this State may exercise personal jurisdiction over any nonresident,... as to a cause of action arising from any of the acts, omissions, ownership, use or possession enumerated in this section, in the same manner as if he were a resident of the State, if in person or through an agent, he: (b) Commits a tortious act or omission within this State;. . .”
Subsection (b) was first interpreted by this court as encompassing the so-called New York rule, requiring both the tortious act or omission and the resultant injury to have occurred in Georgia in order for jurisdiction to attach.
O’Neal Steel, Inc. v. Smith,
Extrapolating from the Supreme Court’s decision in Coe & Payne and the due process analysis in Division 1 of this opinion, jurisdiction over a nonresident defendant may be exercised by virtue of Code Ann. § 24-113.1 (b) when: (1) The nonresident has purposefully done some act or consummated some transaction with or in the forum (but the actual act or omission resulting in the injury here need not have occurred in this state). The defendant need not be physically within the forum when this act or transaction occurs and a single such instance may suffice; (2) The Georgia plaintiff must have a legal cause of action in tort against the nonresident, which arises out of, or results from, the purposeful activity of the defendant involving this state; a resident is a victim of a "tortious act ” when he suffers an injury here due to an act or omission of negligence occurring outside this state; and (3) If the requirements of (1) and (2) are satisfied, the exercise of jurisdifction over the nonresident must be "reasonable.” We turn now to an application of this test to the appeal sub judice.
A.
Purposeful Activity.
The appellees urge an interpretation of our long arm statute such that an allegation of facts falling within the literal language of that statute, to wit, the "transaction of any business within this State” or the "commission of a tortious act or omission within this State,” ipso facto satisfies the due process requirement of "contact” between the nonresident
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defendant and the forum. In Hanson v. Denckla,
The appellees’ argued-for interpretation of Code Ann. § 24-113.1 would be valid insofar as subsection (a) of that statute is concerned. For a showing that a nonresident has "transacted business
within
this state” with a plaintiff carries with it an implicit showing that the defendant has conducted some purposeful activity with or in this forum. That a nonresident has "transacted any business” within this forum shows
both
a "connection” between that defendant and the forum itself. Where however, a nonresident has not done some act or consummated some transaction here, he has not "transacted any business” within this state even though there may be some "connection” between the forum plaintiff and the nonresident defendant.
O. N. Jonas Co. v. B & P Sales,
Appellees’ interpretation of Code Ann. § 24-113.1 as it relates to subsection (b) of that law (and the applicable subsection here), that an allegation of tortious injury occurring inside Georgia due to a nonresident’s act or omission outside this state establishes a sufficient predicate for the exercise of jurisdiction, would also be valid in the vast majority of cases because in this demonstrable "connection” between the plaintiff and the nonresident defendant will be either an explicit or implicit "contact” between the forum itself and the nonresident, i.e., activity within this state such as a shipment of defective goods into the stream of Georgia commerce which results in a tortious injury here. See
Coe & Payne Co. v. Wood-Mosaic Corp.,
On this analysis it was error to deny the motions to dismiss of the individual appellants Shellenberger, Modesto and Power. The only "contact” between them and Georgia was through the appellees’ unilateral action in buying in this state an aircraft which was previously owned or repaired by them at all times outside this state and which subsequently (and due to no responsibility on *411 their part) was sold to a Georgia corporation and ultimately was bought here by the appellees. This may establish some "connection” between the Georgia plaintiffs and the nonresident individual appellants but we do not believe prior ownership or repair of an airplane which fortuitously (insofar as these appellants are concerned) finds its way into Georgia commerce for resale to a resident plaintiff is a "contact” with this state when these nonresidents have never entered this forum, solicited the sale here (in person or by mail) or sold it to the Georgia plaintiff.
Appellant Rebel Aviation, Inc. stands on a different footing however. The record shows that it sold the aircraft to a Georgia corporation, which in turn sold it to the appellees; by so doing it placed an allegedly defective aircraft into the stream of Georgia commerce where it was foreseeable that it would be resold to a resident of this state. We believe this activity, selling to a Georgia resident for resale here, is a sufficient activity with or in this forum, purposefully taken, to establish a "contact” between Rebel Aviation and Georgia. In
Coe & Payne,
In holding that Code Ann. § 24-113.1 (b) requires some activity by a nonresident defendant in or with Georgia, we wish to caution that there is no engrafting on this "tort” section the requirement that this activity amount to a "transaction of business” within this state. Activity which will support a finding of a "contact” with Georgia for purposes of exercising jurisdiction under subsection (b) need not be so extensive as to meet the definitional requirements of subsection (a). In
Coe & Payne Co. v. Wood-Mosaic Corp.,
B. Legal Cause of Action. It is alleged that Rebel Aviation’s acts or omissions in the following respects constitute negligence per se, being violations of Federal Aviation Regulations: performing or having performed repairs to the aircraft; failing to keep and transfer a properly kept log book of maintenance records on the airplane; and, in performing annual or other major inspections on the plane.
Rebel Aviation is a prior owner of the aircraft. As such it was primarily responsible for maintaining the plane in an airworthy condition. 14 CFR, § 91.163 (a). To this end an owner is required to have the plane inspected every twelve months for airworthiness (every 100 hours of service time if the aircraft is operated for hire) and every twenty-four months for altimeter system tests; in addition all defects affecting airworthiness are required to be repaired between inspections. 14 CFR, §§ 91.165, 91.169 (a) and (b) and 91.170. Likewise, 14 CFR, § 91.173 mandates a proper keeping of maintenance records on the aircraft. We believe that the allegations of appellees’
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complaint are sufficient "notice pleading” to state a cause of action in tort for the negligent breach of the owner’s duty to have inspected, repaired and to keep proper records. See
Dillingham v. Doctors Clinic, P. A.,
We have serious reservations however with the allegation that failure to transfer the records was a tortious breach of duty. 14 CFR, § 91.174 requires such records be transferred to the buyer from the seller of the aircraft. Here Rebel Aviation and the appellees do not stand in a buyer-seller relation and any tort which results from the breach of a duty which arises solely from a sales contract to which the appellees are not in privity cannot be sued upon by them. Code § 105-106.
As to the allegation that Rebel Aviation concealed a material fact concerning the condition of the aircraft and thus committed a tortious deceit, there was no solicitation by Rebel Aviation of the sale to the appellees and no negotiations between them prior to or subsequent to appellees’ purchase. If there is a concealed defect, known to a seller, in property being sold, the seller is bound to reveal it to the purchaser.
Southern v. Floyd,
In summary, we hold that appellees’ complaint alleges a legal cause of action in tort against appellant Rebel Aviation for negligence in repairing, inspecting and keeping proper records on the aircraft but fails on the allegation of negligence in failing to transfer records and of fraudulent deceit in concealing a material fact.
C. "ReasonablenessWe have carefully weighed the factors present in this appeal against those found in the Byham case,
Judgments in 51911, 51912 and 51915 reversed; judgment in 51914 affirmed.
Notes
McGee v. International Life Ins. Co.,
See e.g., Lafayette Ins. Co. v. French, 59 U. S. (
See e.g., Green v. Chicago, B. & Q. R. Co.,
See e.g., Henrietta Min. & Mill. Co. v. Johnson,
See Agrashell, Inc. v. Bernard Lirota Co., 344 F2d 583 (holding in McGee limited to suits involving contract of insurance); Webb v. Stanker & Galetto, Inc., 84 N. J. Super. 178 (
See e.g., Beck v. Spindler,
Hanson v. Denckla,
McGee v. International Life Ins. Co.,
International Shoe Co. v. Washington,
Hanson v. Denckla,
International Shoe Co. v. Washington,
See, Note, 47 Georgetown L. J. 342, 355.
For the proposition that Code Ann. § 24-113.1 (c) has been "swallowed up” by the Supreme Court’s interpretation of Code Ann. § 24-113.1 (b) see Comment, 10 Ga. S. B. J. 164, 174.
