468 F.2d 538 (8th Cir. 1972), 72-1068, Arkansas Poultry Co-op., Inc. v. Red Barn System, Inc.

Docket Nº:72-1068.
Citation:468 F.2d 538
Party Name:ARKANSAS POULTRY COOPERATIVE, INC., Appellee, v. The RED BARN SYSTEM, INC., Appellant.
Case Date:November 06, 1972
Court:United States Courts of Appeals, Court of Appeals for the Eighth Circuit
 
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Page 538

468 F.2d 538 (8th Cir. 1972)

ARKANSAS POULTRY COOPERATIVE, INC., Appellee,

v.

The RED BARN SYSTEM, INC., Appellant.

No. 72-1068.

United States Court of Appeals, Eighth Circuit.

November 6, 1972

Submitted Sept. 12, 1972.

Joseph S. Levy, Kansas City, Mo., for appellant.

Page 539

James M. Roy, Jr., Fayetteville, Ark., for appellee.

Before BRIGHT and STEPHENSON, Circuit Judges, and TALBOT SMITH, [*] District Judge.

STEPHENSON, Circuit Judge.

This cause of action comes before us from the United States District Court for the Western District of Arkansas. Defendant-appellant (hereinafter "Red Barn") appeals from the trial court's entry of summary judgment, D.C., 335 F.Supp. 214, entered under date of December 28, 1971 in the amount of $17,566.66 bearing interest at six per cent (6%) per annum from May 21, 1968.

In keeping with the progeny of International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945), we are asked to decide whether Red Barn was "doing business" in Arkansas sufficient to warrant the assertion of in personam jurisdiction over the non-resident corporation by the federal district court. Our response is in the negative.

Plaintiff-appellee's (hereinafter "Arkansas Poultry") complaint prayed judgment based upon a letter of guarantee, ostensibly executed by Red Barn to guarantee the debt of the principal debtor, Ollie's Chicken, Inc., a Missouri corporation doing business in Kansas City, Missouri (Ollie's Chicken). Federal jurisdiction was invoked upon the allegation that there was a diversity of citizenship and that the amount in controversy exceeded $10,000. 1

Pursuant to the Arkansas "long-arm" statute, Ark.Stat.Ann. § 27-2502 C 1(a) (1969 Supp.), in personam jurisdiction was asserted upon the theory that the non-resident defendant had transacted business in the forum state making it amenable to service. Red Barn moved to dismiss the action for want of sufficient minimal contacts with the state of Arkansas. The trial court denied the motion.

The record does not contain any specific findings of fact in connection with the denial of the motion to dismiss, and the affidavits filed by the respective parties are in dispute. Nevertheless, assuming arguendo the truth of the matter contained in Arkansas Poultry's affidavit in opposition to the instant motion, in personam jurisdiction cannot be upheld.

Initially we note that Red Barn does no business in Arkansas except in the instance claim in this suit.

Affiant Crawford Palmer, Assistant Manager of Arkansas Poultry, stated that prior to the execution of the guarantee, representatives of Ollie's Chicken and Arkansas Poultry by means of the...

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