Stallings v. Hahn

Decision Date19 June 1990
Docket NumberNo. 8911DC548,8911DC548
Citation392 S.E.2d 632,99 N.C.App. 213
CourtNorth Carolina Court of Appeals
PartiesGeorge STALLINGS v. Kathryn N. HAHN.

Staton, Perkinson, Doster & Post by Ronald L. Perkinson, Sanford, for plaintiff-appellee.

Harrington, Ward, Gilleland & Winstead by F. Jefferson Ward, Jr., Sanford, for defendant-appellant.

JOHNSON, Judge.

Defendant Kathryn M. Hahn, who is a citizen and resident of Pennsylvania, placed an advertisement in the December 1988 issue of Hemmings Motor News, a national monthly magazine, to offer for sale a 1958 Pontiac Bonneville and a parts car for the Bonneville for the price of $2,500. On or about 25 November 1988, plaintiff, who is a resident of North Carolina, telephoned defendant in Pennsylvania regarding the advertisement. Plaintiff did not reach defendant on the first call, and defendant returned plaintiff's call. After this long distance conversation, plaintiff sent defendant a deposit on the cars in the form of a cashier's check in the amount of $200. Defendant received the check in Pennsylvania. On 8 December 1988, plaintiff again telephoned defendant in Pennsylvania to make arrangements to pick up the cars in Pennsylvania, and defendant advised plaintiff that she was going to sell the cars to someone else. Defendant returned the deposit check to plaintiff.

Although a defendant may not ordinarily immediately appeal the denial of a motion to dismiss, this defendant may properly appeal under G.S. § 1-277(b) which provides for immediate appeal "from an adverse ruling as to the jurisdiction of the court over the person or property of the defendant." Holt v. Holt, 41 N.C.App. 344, 255 S.E.2d 407 (1979).

We apply a two-part test to determine whether Ms. Hahn, a foreign defendant, may be subjected to in personam jurisdiction in this State. First, we consider whether there exists a basis for asserting jurisdiction under G.S. § 1-75.4, commonly known as the "long arm" statute. Second, if such a basis exists, we determine whether exercise of the jurisdiction by our courts would comport with due process of law guaranteed by the constitution. Marion v. Long, 72 N.C.App. 585, 325 S.E.2d 300, disc. rev. denied and appeal dismissed, 313 N.C. 604, 330 S.E.2d 612 (1985). Although the long arm provision is to be liberally construed in favor of jurisdiction, Phoenix America Corp. v. Brissey, 46 N.C.App. 527, 265 S.E.2d 476 (1980), the burden is on the plaintiff to establish a prima facie showing that one of the statutory grounds is applicable. DeSoto Trail, Inc. v. Covington Diesel, Inc., 77 N.C.App. 637, 335 S.E.2d 794 (1985); Public Relations, Inc. v. Enterprises, Inc., 36 N.C.App. 673, 245 S.E.2d 782 (1978).

In the instant case, the trial court made no finding that any particular provision of G.S. § 1-75.4 is applicable. Plaintiff contends in his brief that subsection 5(d) covers the situation. G.S. § 1-75.4(5)(d) provides that statutory jurisdiction is present in any action that "[r]elates to goods, documents of title, or other things of value shipped from this State by the plaintiff to the defendant on his order or direction." This Court has held that payments of money constitute "things of value" for purposes of this statute. Church v. Carter, 94 N.C.App. 286, 380 S.E.2d 167 (1989); Schofield v. Schofield, 78 N.C.App. 657, 338 S.E.2d 132 (1986). Therefore, we hold that statutory jurisdiction exists under G.S. § 1-75.4(5)(d).

We find, however, that this jurisdiction cannot constitutionally be exercised. The landmark case of International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945), established that "minimum contacts" between the forum state and defendant must exist before in personam jurisdiction may be exercised. The quality and quantity of contacts, the source and connection of the cause of action with those contacts, as well as convenience and interest of the forum state are useful criteria in determining the existence of minimum contacts. Sola Basic Industries v. Electric Membership Corp., 70 N.C.App. 737, 321 S.E.2d 28 (1984). The facts of each case must be considered in light of "traditional notions of fair play and...

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11 cases
  • Troublefield v. AutoMoney, Inc.
    • United States
    • North Carolina Court of Appeals
    • July 19, 2022
    ...has yet to address whether advertisements in a local publication can give rise to personal jurisdiction. See Stallings v. Hahn , 99 N.C. App. 213, 216, 392 S.E.2d 632, 634 (1990) ; Marion v. Long , 72 N.C. App. 585, 587, 325 S.E.2d 300, 303 (1985). Certainly, placing an advertisement in a p......
  • Leake v. AutoMoney, Inc.
    • United States
    • North Carolina Court of Appeals
    • July 19, 2022
    ...has yet to address whether advertisements in a local publication can give rise to personal jurisdiction. See Stallings v. Hahn , 99 N.C. App. 213, 216, 392 S.E.2d 632, 634 (1990) ; Marion v. Long , 72 N.C. App. 585, 587, 325 S.E.2d 300, 303 (1985). Certainly, placing an advertisement in a p......
  • Rossetto Usa v. Greensky Financial, LLC
    • United States
    • North Carolina Court of Appeals
    • July 1, 2008
    ...on eBay. We conclude that the foregoing is insufficient to establish minimum contacts with North Carolina. See Stallings v. Hahn, 99 N.C.App. 213, 216, 392 S.E.2d 632, 633 (1990) (concluding that the defendant did not have "minimum contacts" with the forum state when "[t]he only contacts be......
  • HANES CONST. v. HOTMIX & BITUMINOUS EQUIP.
    • United States
    • North Carolina Court of Appeals
    • September 4, 2001
    ...the argument that Hotmix has sufficient minimum contacts with North Carolina to be subject to its jurisdiction. In Stallings v. Hahn, 99 N.C.App. 213, 392 S.E.2d 632 (1990), this Court held that personal jurisdiction could not be exercised under the due process clause where (1) defendant pl......
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