SDM CORPORATION; TLG, INC.; AND JOSEPH W. LOVOI, APPELLANTS,
v.
KEVCO FINANCIAL CORPORATION, A FLORIDA CORPORATION, APPELLEE

Fla. 2d DCA | 1989-04-05
No. 88-02981
THREADGILL, A.C.J., and ALTENBERND, J., concur.
540 So. 2d 931 Florida District Court of Appeal, Second District (1989) Caution
Cited by 6 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

SDM Corporation and related appellants appealed a denial of their motion to dismiss for lack of personal jurisdiction. The court reversed, holding that SDM lacked sufficient minimum contacts with Florida to sustain jurisdiction despite Kevco's claims arising from a contract involving Florida-manufactured materials.


Holding

SDM did not have sufficient minimum contacts with Florida to sustain personal jurisdiction. The court held that an out-of-state party's contract with a Florida resident alone is insufficient to establish minimum contacts, and SDM's isolated visit to Florida to check on contract performance does not subject it to Florida court jurisdiction.


Headnotes

[1] Personal jurisdiction over a foreign party requires compliance with the state's long-arm statute and sufficient "minimum contacts" to satisfy due process.

[2] A defendant's conduct must demonstrate that it could reasonably foresee being haled into a court of the forum state to establish personal jurisdiction.

Previewing 2 of 6 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.

Join FLexlaw to unlock all legal intelligence

Key Quotes

“In order for personal jurisdiction over a foreign party to be proper, the plaintiff must not only meet Florida's long-arm statute, but also the defendant must have sufficient 'minimum contacts' to satisfy due process requirements.”

Establishes the two-part test for personal jurisdiction over out-of-state defendants

Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.

Join FLexlaw to unlock all legal intelligence

Facts & Procedural History

SDM, a Massachusetts corporation with offices in Massachusetts and New Hampshire but no presence in Florida, contracted with Custom Tooling (a Florida…

The full statement of facts, procedural history, and disposition for this case are member content.

Join FLexlaw to unlock all legal intelligence

© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.


Opinion of the Court
PATTERSON, Judge.

PATTERSON, Judge.

This is an appeal from a nonfinal order denying appellants’ motion to dismiss for lack of jurisdiction. We reverse and remand.

Appellant TLG, Inc., d/b/a SDM Corporation, is a Massachusetts corporation, and appellant Joseph W. Lovoi is a Massachusetts resident (collectively, “SDM”). SDM’s principal place of business is in Massachusetts, and it maintains an office in New Hampshire. SDM has never had an office in Florida, has never advertised in Florida and has never sent any sales representatives to Florida. Appellee, Kevco Financial Corporation, is a Florida corporation with its principal place of business located in Hillsborough County, Florida (“Kevco”).

A representative of another Florida corporation, Custom Tooling and Engraving, Inc. (“Custom Tooling”), visited SDM’s office in New Hampshire and contracted to supply SDM with materials which Custom Tooling manufactured in Florida. On one occasion, after delays in performance, one of SDM’s representatives visited Custom Tooling to get a status report on the progress of the contract. Kevco ultimately purchased Custom Tooling’s invoices and telephoned SDM in Massachusetts and New Hampshire to verify the amounts of the invoices and to determine if there were any offsets. SDM failed to make payments due on the contract. Kevco claims that the cause of action for nonpayment accrued in Hillsborough County, Florida, where its principal place of business is located.

In order for personal jurisdiction over a foreign party to be proper, the plaintiff must not only meet Florida’s long-arm statute, but also the defendant must have sufficient “minimum contacts” to satisfy due process requirements. American Vision Center, Inc. v. National Yellow Pages Directory Service, Inc., 500 So. 2d 642 (Fla. 2d DCA 1986). The facts presented fail to sustain jurisdiction. SDM, based on its conduct, could not reasonably foresee being haled into a Florida court. World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980). Kevco concedes that failure to make payment alone is insufficient to establish minimum contacts. Kevco’s primary argument is that the failure to make payment due in Florida, coupled with Custom Tooling’s actions of manufacturing materials in Florida to ship to SDM, constitutes sufficient minimum contacts. An out-of-state party’s contract with a Florida resident alone, however, is insufficient to establish minimum contacts. It is necessary for the court to look not only at the contract, but also prior negotiations, contemplated future consequences and the actual course of dealing between the parties. Burger King Corp. v. Rudzewicz, 471 U.S. 462, 478-79, 105 S.Ct. 2174, 2185, 85 L.Ed.2d 528, 545 (1985).

SDM and Custom Tooling negotiated and entered into the contract in New Hampshire. Appellants had no control over the assignment of invoices to Kevco and Kevco’s subsequent calls inquiring about amounts due on those invoices. Furthermore, SDM did not contemplate, at the time of entering the contract, that it would later be necessary to send a representative to Florida to check on the status of the contract when Custom Tooling fell behind in production. This isolated visit to Florida should not subject SDM to the jurisdiction of the Florida courts.

In Armaly v. Practice Management Associates, Inc., 533 So. 2d 920 (Fla. 2d DCA 1988), this court held that there were sufficient minimum contacts to sustain jurisdiction. Unlike the isolated visit to Florida in this case, in Armaly the contract provided that the defendant furnish weekly reports to the plaintiff in its Florida office. In addition, the contract documents contained provisions for Florida jurisdiction and venue and contractual interpretation under Florida law. Kevco does not argue that the terms of the Custom Tooling contract contain similar provisions or that the contract would lead SDM to reasonably anticipate being haled into a Florida court for breach of the contract.

Based on the foregoing, we hold that SDM did not have sufficient minimum contacts with the State of Florida to sustain personal jurisdiction, and we reverse the order denying the motion to dismiss and remand for the lower court to dismiss the action with prejudice.

THREADGILL, A.C.J., and ALTENBERND, J., concur.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Wash. Cap. Corp. & Jack Wolgin v. Milandco, Ltd., Inc., 695 So. 2d 838 (Fla. 4th DCA 1997)
    …d in this state.” § 48.193(l)(g), Fla. Stat. (1995) (emphasis supplied.) It is not enough that a foreign defendant merely contract with a Florida resident. See McRae v. J.D./M.D., Inc., 511 So. 2d 540, 543 (Fla.1987); SDM Corp. v. Kevco Fin. Corp., 540 So. 2d 931 (Fla. 2d DCA 1989). In order to establish long-arm jurisdiction under subsection 48.193(l)(g), a plaintiff must establish that the “defendant failed to perform an act or acts whose performance was to be in Florida and that such breach formed the bas…
    1 / 2
  • Intercontinental Corp. v. Orlando Reg'l Med. Ctr., Inc., 586 So. 2d 1191 (Fla. 5th DCA 1991)
    …Fla.1990) (exchange of information and negotiations with Florida company by letter, telex or telephone from out of state and one meeting in Florida at plaintiff's request not enough to establish minimum contacts); SDM Corp. v. Kevco Financial Corp., 540 So. 2d 931 (Fla. 2d DCA 1989) (single visit by representative of out-of-state company to Florida and contract with Florida resident insufficient to establish minimum contacts). Although, unquestionably, the communications with ORMC were purposefully directed b…
  • Biloki v. Majestic Greeting Card Co., Inc., 33 So. 3d 815 (Fla. 4th DCA 2010)
    …2174. Like the analysis required in connection with section 48.193(2), there simply was not enough participation within or with Florida by the appellants to constitute sufficient minimum contacts for jurisdiction. See SDM Corp. v. Kevco Fin. Corp., 540 So. 2d 931, 932 (Fla. 2d DCA 1989) (“An out-of-state party’s contract with a Florida resident alone ... is insufficient to establish minimum contacts.”). Conclusion We reverse and remand with instructions to enter an order granting the motion to dismiss Maje…

Authorities Cited

Full citator, related cases, and AI research tools

Open in FLexlaw