Robinson v. Vanguard Ins. Co.
| Decision Date | 16 April 1985 |
| Docket Number | Nos. CW,s. CW |
| Citation | 468 So.2d 1360 |
| Parties | Emanuel ROBINSON v. VANGUARD INSURANCE COMPANY, et al. Helen Nichols MILLS, et al. v. BEECH AIRCRAFT CORPORATION, INC., et al. 84 1359, CW 84 1360. |
| Court | Court of Appeal of Louisiana — District of US |
Chester C. Williams, Baton Rouge, for plaintiff-respondent Emanuel robinson.
Docia L. Dalby, Baton Rouge, for defendant-relator Beech Aircraft Corp.
Stephen H. Vogt, Baton Rouge, for defendant-respondent Vanguard Ins. Co., Helen Nichols Mills, Administratrix of the succession of Alva Ray Mills, et al.
Lisa Brener Cusimano, Lafayette, for plaintiff-respondent Helen Nichols Mills Alice Mills Nolley, Mary Mills Corkern, Robyn Mills Oslan, Jody Hart Mills and Raymond Matthew Mills.
Howard Daigle, Jr., New Orleans, Dorcia L. Dalby, Baton Rouge, for defendant-mover Beech Aircraft Corp., Baton Rouge Beechcraft, Inc.
Before COLE, CARTER and LANIER, JJ.
These are consolidated suits for damage arising out of an airplane crash in Mississippi. The Robinson suit is by the Mississippi resident who owned the Mississippi property where the plane crashed. The Mills suit is by the Louisiana surviving spouse and children of a deceased Louisiana resident and asserts wrongful death, survival and redhibitory actions. The nonresident manufacturer of the airplane filed a declinatory exception in each case pleading the objection of lack of jurisdiction over the person. La.C.C.P. art. 925(5). The district court judges overruled the exceptions. On application of the manufacturer, this court granted a supervisory writ to consider the merits of the exceptions.
The exceptions were tried on the following stipulations:
1.
Beech Aircraft Corporation has "transacted business" in the State of Louisiana as that phrase is used in La.R.S. 13:3201(a). 1
2.
Beech Aircraft Corporation has derived "substantial revenue from goods used or consumed in this state" as that phrase is used in La.R.S. 13:3201(d).
3.
Beech Aircraft Corporation has been the defendant in other suits filed in the courts of the State of Louisiana based upon different factual allegations.
* * *
Beech Aircraft Corporation designed, and in 1961 manufactured a model N35 Bonanza with serial number D-6751 and FAA registration number N1317Z. That aircraft crashed near McComb, Mississippi, on July 9, 1983, causing the instantaneous death of Alva Ray Mills.
Bonanza N1317Z was first sold by Beech Aircraft Corporation to Southaire, Inc. in Memphis, Tennessee, by Bill of Sale dated May 26, 1961.
Southaire, Inc. sold Bonanza N1317Z to Wiles-Holloway, Inc. of Baton Rouge, Louisiana, by Bill of Sale dated May 26, 1961.
Wiles-Holloway, Inc. sold Bonanza N1317Z to Hood Realty and Development Company, Inc. of Amite, Louisiana, by Bill of Sale dated May 31, 1961.
Hood Realty and Development Company, Inc. sold Bonanza N1317Z to Wiles-Holloway, Inc. of Baton Rouge, Louisiana, by Bill of Sale dated August 31, 1963.
Wiles-Holloway, Inc. sold Bonanza N1317Z to C.E. Major, Jr., M.D. of White Castle, Louisiana, by Bill of Sale dated October 22, 1963.
The estate of Dr. C.E. Major, Jr. then sold Bonanza N1317Z to Lonnie H. Bearry of Baton Rouge, Louisiana, on the 20th day of December, 1982, who in turn sold the aircraft to Bonanza 17 Zulu, a coownership of Lonnie H. Bearry; A.R. Mills; and S.B. Simpson, by Bill of Sale dated December 20, 1982.
The aircraft was then destroyed in an accident near McComb, Mississippi, on July 9, 1983.
Beech Aircraft Corporation is a foreign corporation which has never registered its business affairs in Louisiana with the Secretary of State.
Relator, Beech Aircraft Corporation (Beech), contends the causes of action alleged in these suits do not arise out of any business conducted by Beech in the State of Louisiana and, as a matter of state law, there is no jurisdiction over the person. Respondent Robinson contends Beech's exception is rendered moot because "personal service of process is sufficient to confer personal jurisdiction over Beech as to respondent's cause of action." The Mills respondents contend (1) although Beech did not directly sell the airplane to a Louisiana resident, the circumstances are such that Beech "knew and consented to the fact that the airplane was going to be sold in Louisiana"; and (2) since the purchase of the airplane in Louisiana by the deceased (with others) was a natural result of the general business activity of Beech in Louisiana, the cause of action arose from Beech transacting business in this State as provided in La.R.S. 13:3201(1). 2
To determine if Louisiana has personal jurisdiction over Beech, a dual inquiry must be made: (1) Does the Louisiana long-arm statute (La.R.S. 13:3201 provide for assertion of jurisdiction in the context of the facts of the case; and (2) is the assertion of jurisdiction by Louisiana constitutionally permissible, that is, will the exercise of personal jurisdiction over Beech be consonant with "traditional notions of fair play and substantial justice" and did Beech have sufficient "minimum contacts" with Louisiana to satisfy due process? Pedelahore v. Astropark, Inc., 745 F.2d 346 (5th Cir.1984). Since Beech has stipulated it has "transacted business" and derived "substantial revenue from goods used or consumed" in this state, it has sufficient "minimum contacts" with this state to satisfy due process and that inquiry is no longer at issue.
Prior to 1964, personal jurisdiction over a nonresident was determined under La.R.S. 13:3471 which provides, in pertinent part, as follows:
The following rules supplement those governing the service of citation and other legal process in a civil action or proceeding contained in the Code of Civil Procedure:
(1) If the foreign corporation is not one required by law to appoint an agent for the service of process, but has engaged in a business activity in this state, service of process in an action or proceeding on a cause of action resulting from such business activity in this state, or for any taxes due or other obligations arising therefrom, may be made on any employee or agent of the corporation of suitable age and discretion found in the state. [Emphasis added].
For purposes of the instant case, the decisions in Nigro v. Cessna Aircraft Company, 169 So.2d 594 (La.App. 4th Cir.1964), Covington v. Southern Specialty Sales Company, 158 So.2d 79 (La.App. 1st Cir.1963) and Home Gas & Fuel Co. v. Mississippi Tank Co., 143 So.2d 641 (La.App. 3rd Cir.1962) show how this law was interpreted. In Home Gas, a Louisiana plaintiff sustained property damage in this state when an accidental fire occurred on its premises. The plaintiff alleged the fire was caused by negligence of a nonresident (Mississippi) manufacturer in failing to install a safety device on a butane tank on a butane delivery truck. The evidence showed the butane tank was manufactured and delivered without any contact with Louisiana, and was ordered in a telephone call from Louisiana to Mississippi. In finding Louisiana had personal jurisdiction over the Mississippi manufacturer, the court observed as follows:
We believe that these facts show conclusively that the Mississippi Tank Company, over a period of years, has consistently and actively engaged in a business activity in the State of Louisiana. There is very little more they could be doing in this state and it is obvious that they have solicited business and engaged in a business activity in this state. It is admitted that the delivery unit in question in this particular suit was not purchased by direct solicitation. It is further conceded that the evidence establishes that the tank involved in this particular suit was ordered by phone from Louisiana. However, we do not agree with the ruling of the trial court that substituted service allowed by this statute is limited to a proceeding on a cause of action directly resulting from a business activity carried on in this state.... As the evidence clearly demonstrates that the Mississippi Tank Company has actively engaged in soliciting business in the State of Louisiana over a long period of time, it is inconceivable that this statute could be construed to hold that the plaintiff herein cannot bring suit against the Mississippi Tank Company merely because this particular transaction was not a result of a direct solicitation by the defendant company.
As the Mississippi Tank Company has sold a great number of its products in this state and is actively engaged in considerable business in this state, the plaintiff would not have purchased products from them had they not been familiar with the type of products sold by the Mississippi Tank Company in the State of Louisiana. To allow the Mississippi Tank Company to escape liability and force the defendant to proceed with its cause of action at the company's domicile in the State of Mississippi would be a great injustice. But for the prior activity of the defendant company in this state, it would never have received an order for the production of this particular delivery tank and thus, its sale was actually a result of the business activity of the Mississippi Tank Company in the State of Louisiana.
In our increasing industrial economy, it is evident that a great many products are ordered by phone and by mail from concerns and businesses located in a great number of states. Salesmen travel in numerous states of this country advertising their company's products. Some orders are taken directly, some made by phone or mail after reflection by the prospective purchaser. It should make no difference how the order was received when the foreign corporation attempts and does considerable business within the borders of this state and fails to comply with the law of qualifying to do business within this state. This is not a case of an isolated sale to a Louisiana resident. The defendant company...
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