Chamberlain v. Autosource Motors, LLC (Ex parte Autosource Motors, LLC.)

Decision Date13 June 2014
Docket Number1130255.
CourtAlabama Supreme Court
PartiesEx parte AUTOSOURCE MOTORS, LLC. (In re Stephanie Michelle Chamberlain v. AutoSource Motors, LLC).

Charles N. Miller and Jeffrey L. Ingram of Galese & Ingram, P.C., Birmingham, for petitioner.

Submitted on petitioner's brief only.

Opinion

STUART, Justice.

AutoSource Motors, LLC (“AutoSource”),1 petitions this Court for a writ of mandamus directing the Montgomery Circuit Court (“the trial court) (1) to vacate its order denying AutoSource's motion to dismiss the action filed against it by Stephanie Michelle Chamberlain for lack of personal jurisdiction and (2) to enter an order granting AutoSource's motion to dismiss for lack of personal jurisdiction. We grant the petition and issue the writ.

I. Facts and Procedural History

On September 2, 2011, Chamberlain filed in the trial court a complaint against AutoSource. Chamberlain's complaint set forth the following statement of facts:

“5. Ms. Chamberlain saw an advertisement for an alleged 2008 Ford Mustang Coupe [automobile] on the Internet.
“6. Auto Source Motors offered the vehicle as a rebuilt vehicle at a competitive price, which interested Ms. Chamberlain.
“7. Ms. Chamberlain contacted Auto Source Motors by telephone and was told by employees, representatives, and/or contractors of [AutoSource] that the vehicle she was interested in was a rebuilt vehicle.
“8. Specifically, Auto Source Motors, through its employees, contractors, and representatives, told Ms. Chamberlain that there existed a salvage title for the car that was able to be retitled in the state of Alabama, and that as specialists in the rebuilding and resale of vehicles, they promised her that the vehicle was able to be retitled in Alabama.
“9. Based on these representations, Ms. Chamberlain traveled to Utah to the dealership.
“10. Once there, Ms. Chamberlain again inquired as to the details of their phone conversation described in paragraph 8.
“11. Again, [AutoSource] restated what was stated above in paragraph 8.
“12. Based on the representations made in paragraph 8 both on the telephone and at the dealership Ms. Chamberlain purchased the vehicle.
“13. When Ms. Chamberlain attempted to title the vehicle she discovered that in reality (a) the title was a junk title, not a salvage title; (b) junk titles can never be turned into salvage titles; (c) junk titles can never be titled; (d) the vehicle was not in reality a 2008 model, but was instead a hodgepodge of components from all manner of different years of vehicles.”

Based on the facts set forth above, Chamberlain asserted counts of breach of contract, misrepresentation, and suppression against AutoSource. Chamberlain's only allegation in her complaint regarding jurisdiction was as follows:

“4. Jurisdiction is proper in that Auto Source Motors took actions aimed at Alabama citizens in the course of its business and in particular sought to avail itself of use of the laws of the state of Alabama by claiming its cars could be titled in the state of Alabama as an incentive to Ms. Chamberlain, a citizen of Alabama, to buy one of their vehicles.”

On December 13, 2012, Chamberlain filed an affidavit with the trial court in which she stated:2

“1. My name is Stephanie Michelle Chamberlain. I am over the age of 19 and currently reside in Harris County Texas. I moved from Montgomery County Alabama several months after I filed this case.
“2. Auto Source Motors is located in Woods Cross, Utah. Auto Source Motors markets its cars over the Internet. It holds itself out as a specialist in rebuilt cars, with a particular knowledge necessary to be able to rebuild cars and have them titled in other states.
“3. I saw an advertisement for an alleged 2008 Ford Mustang Coupe on the Internet.
“4. Auto Source Motors claimed the vehicle was rebuilt and offered it at a competitive price, which interested me.
“5. I contacted Auto Source Motors by telephone and was told that the vehicle was a rebuilt vehicle.
“6. Specifically, Auto Source Motors workers told me that there was in existence a salvage title for the car that was able to be re-titled in the State of Alabama and that as specialists in the rebuilding and resale of vehicles, they promised me that the vehicle was able to be re-titled in Alabama.
“7. Based on these statements to me, I went on the long trip to Utah to the dealership.
“8. Once there, I asked the same questions again and was again told the same thing as in paragraph 5 and 6.
“9. Based on the statements made to me over the telephone and in-person at the car dealership in Utah, I purchased the vehicle.
“10. When I got the vehicle back to Alabama, I tried to get the title for it, like Auto Source Motors said I could.
“11. I then discovered that in reality the title was a junk title, not a salvage title, and that junk titles can never be turned into salvage titles. I also discovered that junk titles can never be titled at all.
“12. I also discovered that the vehicle was not really a 2008 model, but was actually a mixed up combination of components from all manner of different years of vehicles.
“13. As a result of being tricked, I obtained a loan for the vehicle, for which I'm still responsible; incurred the cost of the trip to and from Utah; had to pay for the insurance, repairs and upkeep; and I have lost hours and hours of my personal and work time dealing with the finance company and the State of Alabama trying to get the car titled in trying to work out an arrangement to pay for or sell the vehicle once I discovered the title problem and that the car was a combination of components from all manner of different years of vehicles.
“14. The documents showing my loan costs, cost of the trip to and from Utah to get the car and bring it back, the cost of insurance, repairs, and upkeep are attached as exhibit A.“15. I am stuck on the loan on this car, because I cannot get it titled. Without the title I cannot resell it, and I cannot even legally drive it because I cannot get registration for the vehicle or insurance for it. I'm stuck with a car that I cannot legally put on the road yet I have to continue to pay for it fully.”

On October 18, 2013, AutoSource, pursuant to Rule 12(b)(2), Ala. R. Civ. P., filed a motion to dismiss Chamberlain's action for lack of personal jurisdiction. Specifically, AutoSource argued that it did not have sufficient minimum contacts with the State of Alabama to subject it to suit in the Montgomery Circuit Court. AutoSource set forth the following facts in its motion to dismiss in support of its lack-of-personal-jurisdiction argument:

“1. [Chamberlain] alleges various causes of actions that arose out of the purchase of a 2008 Ford Mustang Coupe advertised on the internet by Autosource. (Complaint; [Chamberlain's] affidavit).
“2. Autosource is a Limited Liability Company duly registered in the State of Utah, located in Utah with its principal place of business located in West Woods Cross, Utah. (Affidavit of W. Scott Kjar, [Ex. A] ).
“3. Autosource owns no property in the State of Alabama and conducts no business activities in the State of Alabama. (Affidavit of W. Scott Kjar, [Ex. A] ).
“4. Autosource is not registered, qualified or licensed to do business in the State of Alabama. (Affidavit of W. Scott Kjar, [Ex. A] ).
“5. Autosource is not required to, nor does it pay taxes in the State of Alabama, Autosource does not own any property or assets in the State of Alabama, it does not maintain offices in the State of Alabama, it does not have any employees in the State of Alabama, and it does not have a telephone listing in the State of Alabama. (Affidavit of W. Scott Kjar, [Ex. A] ).
“6. Autosource did not knowingly or intentionally markets [sic], solicits [sic] or advertises [sic] products or services in the State of Alabama. (Affidavit of W. Scott Kjar, [Ex. A] ).
“7. Autosource has not had any prior business dealings with [Chamberlain] prior to the transaction made the basis of this lawsuit. (Affidavit of W. Scott Kjar, [Ex. A] ).
“8. Prior to the transaction with [Chamberlain] made the basis of this lawsuit, Autosource had not ever knowingly or intentionally sold any goods or services to any entity or individual from the State of Alabama. (Affidavit of W. Scott Kjar, [Ex. A] ).
“9. [AutoSource] advertised the subject vehicle on its website, which is a national/international internet website dedicated to assisting individuals and businesses in the buying of automobiles. (Affidavit of W. Scott Kjar, [Ex. A] ).
“10. [Chamberlain] initiated contact with [Auto–Source] concerning the purchase of the subject vehicle from [AutoSource], who was, at all times material hereto, located in Utah. (Complaint, [Chamberlain's] affidavit, affidavit of W. Scott Kjar, [Ex. A] ).
“11. [Chamberlain] went to Autosource in Utah to purchase the vehicle. (Complaint, [Chamberlain's] affidavit, affidavit of W. Scott Kjar, [Ex. A] ).
“12. [Chamberlain] negotiated the purchase in Utah, and left the dealership with the vehicle. (Affidavit of W. Scott Kjar, [Ex. A] ).”

AutoSource attached to its motion to dismiss the affidavit of its then president, W. Scott Kjar, which stated:

“My name is W. Scott Kjar. I am over 19 years of age. I have personal knowledge of the matters set forth herein, and I am competent to give testimony in this cause. At the time of the subject transaction, I was the President of Autosource Motors, LLC.
“I am a bona-fide resident citizen of the State of Utah. I have never lived in the State of Alabama. I do not and never have owned property or assets in the State of Alabama. I do not and never have conducted business activities in the State of Alabama. I have never had any personal contacts with the State of Alabama unrelated to the present lawsuit.
“Autosource Motors, LLC, hereinafter ‘Autosource,’ is a limited liability company duly registered in Utah and having its principal ... place of business in West Woods Cross, Utah. Autosource is not registered, qualified or licensed to do business in the State of Alabama.
...

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