SUBIC BAY
v.
JV CHINA
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A corporation incorporated under Florida law is a Florida resident subject to the general jurisdiction of Florida courts, and a trial court errs in applying the long-arm statute to dismiss an action against such a domestic corporation for lack of personal jurisdiction.
[1] A corporation incorporated in a state is a resident of that state for purposes of personal jurisdiction and is subject to the general jurisdiction of that state's courts.
[2] A trial court errs in applying a state's long-arm statute to determine jurisdiction over a defendant that is a domestic corporation, as long-arm statutes apply only to no…
Previewing 2 of 4 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“Under Florida law, corporations are residents of their state of incorporation. Fowler v. Chillingworth, 113 So. 667, 669 (Fla. 1927); see, e.g., Gay v. Bessemer Props., 32 So. 2d 587, 591 (Fla. 1947) (holding plaintiff was resident of Delaware, where it was incorporated). Consequently, corporations incorporated under Florida law are Florida residents, subject to the general jurisdiction of Florida's courts.”
This establishes the foundational rule that corporate residency is determined by state of incorporation, making domestic Florida corporations subject to general jurisdiction in Florida.
Previewing 1 of 2 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceJV China, Inc. is a Florida corporation incorporated in Florida in 1996 that has remained active. Although incorporated in Florida, JV China maintains…
The full statement of facts, procedural history, and disposition for this case are member content.
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IN THE DISTRICT COURT OF APPEAL OF THE STATE OF FLORIDA
FIFTH DISTRICT NOT FINAL UNTIL TIME EXPIRES TO FILE MOTION FOR REHEARING AND DISPOSITION THEREOF IF FILED SUBIC BAY MARINE EXPLORATORIUM, INC., Appellant,
v. Case No. 5D17-4030 JV CHINA, INC., Appellee. ________________________________/ Opinion filed October 19, 2018 Appeal from the Circuit Court for Orange County, Julie H. O'Kane, Judge.
Stephen D. Milbrath, of Byrd Campbell, P.A., Winter Park, for Appellant.
David C. Gibbs III, of Gibbs Law Firm, P.A., Bartonville, Texas, for Appellee.
ORFINGER, J.
Subic Bay Marine Exploratorium, Inc. (“SBMEI”) appeals the dismissal of its amended complaint. It argues that the trial court erred in ruling that it lacked personal jurisdiction over JV China, Inc. (“JV China”). SBMEI contends that by being a domestic
Florida corporation, JV China is subject to the general jurisdiction of Florida courts. We agree and reverse.
JV China is a Florida corporation. It was incorporated in Florida in 1996, and has remained an active Florida corporation ever since. Though JV China is a Florida corporation, it maintains its principal place of business in California and conducts much of its business overseas.
The present dispute arises out of a stock subscription agreement, under which JV
China agreed to purchase one million shares of SBMEI stock. After JV China allegedly failed to pay the balance owed for the shares, SBMEI filed this action. In turn, JV China moved to dismiss SBMEI’s amended complaint, contending the trial court lacked personal jurisdiction over it. The trial court agreed and dismissed SBMEI’s amended complaint for lack of personal jurisdiction, concluding that SBMEI “failed to establish that JV China was subject to jurisdiction under Florida’s long-arm statute.”1
SBMEI argues that the trial court erred in dismissing its amended complaint because as a domestic Florida corporation, JV China is subject to the jurisdiction of
Florida’s courts. Personal jurisdiction denotes a court’s ability to exercise jurisdiction over a defendant, whether it is an individual or a corporate entity. Borden v. E.-European Ins.
Co., 921 So. 2d 587, 591 (Fla. 2006). The primary focus of a court’s personal jurisdiction inquiry is the defendant’s relationship to the forum state. Bristol-Myers Squibb v. Super.
Ct. of Cal., San Francisco Cty., 137 S. Ct. 1773, 1779 (2017). General jurisdiction over a defendant, meaning that a defendant can be required to answer any claim that arose anywhere in the world, requires that the defendant be “essentially at home” in the forum state. See Goodyear Dunlop Tires Operations, S.A. v. Brown, 594 U.S. 915, 919 (2011).
For an individual, the paradigm forum for the exercise of general jurisdiction is the individual’s domicile; for a corporation, it is an equivalent place, one in which the corporation is fairly regarded as at home. Id. at 924.
Florida residents are subject to the general jurisdiction of Florida courts. Patten v.
Mokher, 184 So. 29, 30 (Fla. 1938). Under Florida law, corporations are residents of their state of incorporation. Fowler v. Chillingworth, 113 So. 667, 669 (Fla. 1927); see, e.g.,
Gay v. Bessemer Props., 32 So. 2d 587, 591 (Fla. 1947) (holding plaintiff was resident of
Delaware, where it was incorporated). Consequently, corporations incorporated under
Florida law are Florida residents, subject to the general jurisdiction of Florida’s courts.
See 18 Am. Jur. 2d Corporations § 67 (2018) (indicating for personal jurisdiction purposes, corporation is citizen of state where it was created).
Here, the trial court did not consider JV China’s Florida residency. Instead, it applied section 48.193, Florida Statutes (2016), Florida’s long-arm statute, which establishes when Florida courts may exercise jurisdiction over non-Florida residents. See
Venetian Salami Co. v. Parthenais, 554 So. 2d 499, 500 (Fla. 1989) (recognizing that long-arm jurisdiction statute sets forth legislature’s determination as to “requisite basis for obtaining jurisdiction over nonresident defendants as far as Florida is concerned”) (emphasis added). Such an analysis is unnecessary when dealing with a domestic corporation.
For these reasons, we conclude the trial court erred in determining that it lacked personal jurisdiction over JV China, as it is a Florida corporation. Thus, we reverse the trial court’s dismissal of SBMEI’s amended complaint.2
REVERSED and REMANDED.
TORPY and LAMBERT, JJ., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Authorities Cited
- Venetian Salami Co. v. J.S. Parthenais, 554 So. 2d 499 (Fla. 1989)
- Borden v. East-European Ins. Co., 921 So. 2d 587 (Fla. 2006)
- Bristol-Myers Squibb Co. v. Superior Court of Cal., 137 S. Ct. 1773 (U.S. 2017)
- Mabelle E. Fowler and Her Husband v. Honorable C. E. Chillingworth, 94 Fla. 1 (Fla. 1927)
- Patten v. Mokher, 134 Fla. 433 (Fla. 1938)
- GAY v. Bessemer Props., 159 Fla. 729 (Fla. 1947)
- Patriotcom, Inc. v. Vega, 821 So. 2d 1261 (Fla. 4th DCA 2002)
- Gioria Y. Singer v. Unibilt Dev. Co., 43 So. 3d 784 (Fla. 5th DCA 2010)