Flambeau Plastics Corp. v. King Bee Mfg. Co.
| Court | United States State Supreme Court of Wisconsin |
| Citation | 24 Wis.2d 459,129 N.W.2d 237 |
| Parties | FLAMBEAU PLASTICS CORP., a Wis. corporation, Respondent, v. KING BEE MANUFACTURING CO., an Ill. corporation, Appellant. |
| Decision Date | 30 June 1964 |
Page 237
v.
KING BEE MANUFACTURING CO., an Ill. corporation, Appellant.
Hill, Miller & Quale, Baraboo, for appellant.
Langer, Cross & Langer and Howard F. Smiley, Baraboo, of counsel, for respondent.
FAIRCHILD, Justice.
Sec. 262.05, Stats., lists the situations in which a court of this state has jurisdiction over a person served in an action pursuant to sec. 262.06. Sec. 262.06 provides that a court of this state which has grounds for personal jurisdiction under sec. 262.05 may exercise it by service of summons in a manner specified in sec. 262.06.
Sec. 262.06(5), Stats., authorizes service upon a corporation outside the state, as appears to have been done in this case. Thus the question is whether grounds for personal jurisdiction exist under sec. 262.05. Defendant raises no constitutional objections, but contends that there are no grounds for personal jurisdiction as set forth in the statute.
The following facts appear in the complaint:
Page 239
Plaintiff is a Wisconsin corporation engaged in the business of manufacturing plastic goods at Baraboo, Wisconsin. [24 Wis.2d 462] Defendant is an Illinois corporation with plant and office in that state. By correspondence in the first quarter of 1961, plaintiff and defendant entered into a contract by which the defendant agreed to purchase from plaintiff one million clearance light assemblies at $.089 per set, for a total price of $89,000. The items were to be delivered at such times and in such quantities as defendant should direct within 15 months. The items were to be manufactured in Baraboo, terms f. o. b. Baraboo or Milwaukee, and payment was to be made by defendant at plaintiff's Baraboo office. Defendant placed orders for a total of 37,569 sets. Plaintiff filled each order and defendant paid for the sets. Defendant failed to place any further orders.
As part of its obligations under the contract, plaintiff provided three molds for the manufacture of the sets; the parties agreed that out of the total contract price of $89,000, $16,700 was for the cost of the molds and that of the unit price of $.089, 1.67 cents were to be allocated to mold amortization. At the end of the 15-month period plaintiff, 'foregoing its cause of action against defendant for its loss of profits' on the sets not ordered, billed defendant for the remaining portion of the mold cost amortization, or $16,072.60. Defendant acknowledged its indebtedness to plaintiff in that amount and made payments totalling $900. Plaintiff brought this action for the balance of $15,172.60 plus interest.
Sec. 262.05(1)(d), Stats., provides that a court of this state has jurisdiction over a person served '(1) In any action whether arising within or without this state, against a defendant who when the action is commenced:
'* * *
'Is engaged in substantial and not isolated activities within this state, whether such activities are wholly interstate, intrastate, or otherwise.'
[24 Wis.2d 463] Plaintiff apparently concedes for the purpose of this appeal that defendant has not been engaged in activities in Wisconsin except as alleged in the complaint, but argues that defendant's action in entering into the contract alleged, with a Wisconsin resident and to be performed in Wisconsin, gave defendant a sufficient local status to subject it to personal jurisdiction of a Wisconsin court under sec. 262.05(1)(d), Stats. Because of the conclusion we reach on other points, it is unnecessary to decide this one. We pass it by, except to express some doubt whether the dealings alleged gave defendant sufficient contact with Wisconsin to be a foundation for personal jurisdiction in an action totally unrelated to the transactions alleged, even if the action were commenced while the transactions alleged could reasonably be said to be continuing.
Plaintiff further contends that the nature of the action as it appears from the allegations of the complaint, falls within one or more of the grounds of personal jurisdiction set forth in sec. 262.05(5)(a), (b), and (c), Stats.
Sec. 262.05(5), Stats., provides...
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