SAMUEL ODELL AND DAVID ODELL, APPELLANTS,
v.
BURTON R. SIGNER AND DAVID MARKS, APPELLEES
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Samuel and David Odell sought to enforce a promissory note against Ohio residents Burton Signer and David Marks, who had signed the note in settlement of prior litigation. The trial court dismissed for lack of jurisdiction over the individual defendants, but the appellate court reversed, holding that corporate acts performed by individual officers in Florida could be imputed to them for jurisdictional purposes.
The court held that the trial court erred in dismissing the complaint against the individual defendants. The court ruled that while signing a note and defending a lawsuit alone do not constitute doing business, the corporate acts performed in Florida by these individuals in their capacity as corporate officers may be imputed to them for jurisdictional purposes, thereby establishing sufficient contacts to support personal jurisdiction.
“First we hold that the signing of a note and the defense of a law suit are not sufficient acts, in and of themselves, to constitute carrying on or engaging in a business or business venture.”
Establishes that isolated acts like signing notes are insufficient for jurisdictional purposes
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Join FLexlaw to unlock all legal intelligenceThe appellees were Ohio residents and officers/stockholders of North American Investment & Development Corporation, also based in Ohio. Years earlier,…
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Appellants instituted an action in the Circuit Court of Dade County, Florida, against the appellees, Burton R. Signer, David Marks and the North American Investment & Development Corporation. The corporation is not a party to this appeal. Appellants sought to re-establish a promissory note signed by the individual appellees and the corporation, and to obtain judgment on the note against the makers thereof for default thereon. The trial court granted appellees’ motion to dismiss, as to them, based on lack of jurisdiction by the court over them. This interlocutory appeal is from the order of dismissal.
The individual appellees are residents of Ohio and officers and stockholders of the defendant corporation, North American Investment and Development Corporation. This corporation is also of Ohio origin. Some years ago, these appellees, were engaged in business activities, in Florida, as agents of the corporation. As a result of these business activities, a dispute arose between the parties, and the appellants instituted a law suit against the defendant corporation and the appellees. This litigation was resolved by settlement which resulted in the appellees and the defendant-corporation giving the note (the subject matter of this litigation) to the appellant. The note was signed by the appellees in their individual capacity as well as on behalf of the defendant corporation.
The appellees were served in this law suit by authority of § 47.161 Fla.Stat., *853~F.S.A. Appellees do not contest the fact -that the corporation conducted such activities as resulted in its being amenable to ■service pursuant to § 47.16, but they argue that insofar as they are individually concerned there has been insufficient activity. All of the acts performed by them in Florida were as agents, officers or employees •of the corporation and are not attributable ■to them individually. The only act performed individually by appellees, they contend, was the signing of the note in settlement of the litigation, and such activity ■does not constitute “doing business” as re•quired by the statute.2
Appellant contends that these individuals ■not only acted in a corporate capacity, but in an individual capacity as well. The notes "they signed in settlement of the prior litigation was to relieve them of individual liability as well as corporate responsibility to appellants.
Appellees respond to this allegation by ■denying that any of their activities was •other than corporate. They further argue that' the factual matters upon which the ■said litigation arose are precluded from •determination by virtue of the settlement.3 This proposition, of course, is in regard to the factual basis of the prior cause of action, not those collateral facts which go to jurisdiction.4 In fact, if we were to literally apply this rule of law in this case we could not determine appellees’ contention that all of the actions performed by appellees were in behalf of the corporation and not individual.
First we hold that the signing of a note and the defense of a law suit are not sufficient acts, in and of themselves, to constitute carrying on or engaging in a business or business venture.5 This determination does not resolve our problem because the above acts are the only such acts appellees admit having individually performed in .this state. All other transactions, they claim, were performed in their capacity as corporate officers.
This presents a rather unique situation. The corporation has performed sufficient acts to constitute it as doing business, but the individuals through whom the corporation must act, have not performed sufficient acts to constitute them as doing business. May the corporate acts be imputed to the individuals for the purpose of obtaining jurisdiction over them? In this instance we think so.
We reach this result for several reasons. Initially, we refuse to compartmentalize our concept of jurisdiction, in that, we will not consider the individual’s act of signing the note in a vacuum. We must consider the circumstances surrounding the signing of this note by them. This note was signed in order to end litigation which had been initiated by virtue of obtaining personal service upon these individuals. By settling the litigation, and then refusing to honor the note given in settlement, these individuals are defeating the jurisdiction over them initially obtained. We can not condone such action. Further, in this case, the acts of the corporation are chargeable to the individuals for purposes of determining the existence of jurisdiction. The reason being that the individual officers, as agents of the corporation would be personally liable to any third person they injured by virtue of their tortious activity even if such act were performed within the scope of their employment as *854corporate officers.6 On this basis, appellees could not escape liability because of their non-residence, when the corporation which they represent was doing business in the state. If the tortious corporate activity is attributable to them personally, then the acts of that corporation which constitute it as doing business in this state, are similarly attributable to the individuals for purposes of determining jurisdiction.
In a somewhat similar situation, the U. S. District Court for Maryland in Maternity Trousseau, Inc. v. Maternity Mart of Baltimore, 196 F.Supp. 456 (D.C.Md.1961) held that a non-resident officer of a foreign corporation, which corporation had committed sufficient acts in Maryland to constitute it as doing business, was chargeable with the acts of the corporation to determine if the officer, as an individual, was present in the state for purposes of jurisdiction. Accordingly, the court determined that the acts of the officer committed, in the state, for the corporation were sufficient to constitute the individual as having done business in the state for purposes of jurisdiction.
In view of the above, the trial court erred in dismissing the complaint as to ap-pellees. Accordingly, the judgment appealed is reversed.
Reversed.
(dissenting).
I respectfully dissent.
It is my view that the appellants have failed to carry their required burden of presenting facts sufficient to clearly justify the application of the statute. Since statutes such as these are required to be strictly construed and cautiously applied, the majority holding in my opinion results in' judicial enlargement of the statute.
HORTON, Judge
(dissenting).
I respectfully dissent.
It is my view that the appellants have failed to carry their required burden of presenting facts sufficient to clearly justify the application of the statute. Since statutes such as these are required to be strictly construed and cautiously applied, the majority holding in my opinion results in' judicial enlargement of the statute.
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Horace v. Am. Nat'l Bank & Tr. Co. OF Fort Lauderdale, 251 So. 2d 33 (Fla. 4th DCA 1971)…ges that company checks were paid against insufficient funds solely because of the personal guaranties of Horace and others. Horace contends that his only act in Florida was to sign a guaranty and under the holding in Odell v. Signer, Fla.App.1964, 169 So. 2d 851, such act was not sufficient to constitute “carrying on or engaging in a business or business venture” within the meaning of F.S. Section 48.161, F.S.A. We do not agree. In Odell, defendants, residents of Ohio, were officers in an Ohio corporation…
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Excel Handbag Co., Inc. v. Edison Bros. Stores, Inc., 428 So. 2d 348 (Fla. 3d DCA 1983)…m statute. Sec. 48.-193(l)(a), Fla.Stat. (1981);1 Bloom v. A.H. Pond Co., Inc., 519 F.Supp. 1162 (S.D.Fla. 1981); Bank of Wessington v. Winters Government Securities Corp., 361 So. 2d 757 (Fla. 4th DCA 1978). Appellant’s reliance on Odell v. Signer, 169 So. 2d 851 (Fla. 3d DCA 1964), is misplaced since it is clear from the complaint that the individual defendants in the instant ease, in conducting the business of EDISON, unlike the defendants in Odell, acted only in their corporate positions and not in their…
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Compania Anonima Simantob v. Bank OF Am. Int'l OF Fla., 373 So. 2d 68 (Fla. 3d DCA 1979)…ted and was an integral part of a series of obligations owed by other parties to the plaintiff bank.4 See, Horace v. American National Bank and Trust Company at Fort Lauderdale, 251 So. 2d 33 (Fla. 4th DCA 1971), which distinguished Odell v. Signer, 169 So. 2d 851 (Fla. 3d DCA 1964). In Horace, supra., at 36 the court quoting from State ex rel. Weber v. Register, 67 So. 2d 619, at 621 (Fla.1953) sets forth the test for determining the existence of jurisdiction over the nonresident:5 “ * * * due process requ…
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- Emil Crockin v. The Boston Store of Ft. Myers, Inc., 137 Fla. 853 (Fla. 1939)
- Hayes v. Greenwald, 149 So. 2d 586 (Fla. 3d DCA 1963)
- Berkman v. ANN Lewis Shops, Inc., 246 F.2d 44 (2d Cir. 1957)
- James v. Kush, 157 So. 2d 203 (Fla. 2d DCA 1963)
- Greene v. Greene, 156 Fla. 342 (Fla. 1945)