An unpublished opinion of the North Carolina Court of Appeals does not constitute controlling legal authority. Citation is disfavored, but may be permitted in accordance with the provisions of Rule 30(e)(3) of the North Carolina Rules of Appellate Proced
ure.
NO. COA03-297
NORTH CAROLINA COURT OF APPEALS
Filed: 16 December 2003
DOROTHY M. WALLACE,
Plaintiff,
v
.
Gaston County
No. 02 CVS 2206
BEN R. SMITH, JR.,
Defendant.
Appeal by plaintiff from order entered 18 November 2002 by
Judge Timothy S. Kincaid in Gaston County Superior Court. Heard in
the Court of Appeals 20 November 2003.
Garland and Drum, P.A., by J. Boyce Garland, Jr., for
plaintiff-appellant.
Arthurs and Foltz, by Nancy E. Foltz, for defendant-appellee.
TYSON, Judge.
I. Background
Ben R. Smith, Jr. (defendant) owns The Peach Tree, in York
County, South Carolina, which sells fruit and vegetables. On 23
June 1999, Dorothy M. Wallace (plaintiff) was injured while
shopping in defendant's store and filed an action in Gaston County,
North Carolina on 13 June 2002. In her unverified complaint,
plaintiff alleged that she was a citizen and resident of Gaston
County, North Carolina, and that defendant was a citizen and
resident of York County, South Carolina.
Defendant moved to dismiss for lack of personal jurisdiction
on 13 August 2002. In an affidavit attached to his motion,defendant stated that he did not own any real or personal property
in North Carolina, did not travel to North Carolina on a regular
basis, and did not have any accounts receivable in North Carolina.
Defendant admitted placing a three-by-five inch advertisement,
approximately twice weekly, in The Charlotte Observer and The
Gaston Gazette during June, July, and one week in August.
Plaintiff's response to defendant's motion asserted that defendant
had placed 379 advertisements for The Peach Tree in The Charlotte
Observer and 110 advertisements in The Gaston Gazette. She also
attached affidavits and invoices showing advertisements in both
newspapers, along with affidavits naming approximately twenty North
Carolina residents who had shopped at The Peach Tree.
The trial court granted defendant's motion to dismiss and
concluded that defendant lacks sufficient contact with the State
of North Carolina to be subject to jurisdiction of this Court.
II. Issue
The sole issue on appeal is whether the trial court had in
personam jurisdiction over defendant.
III. Personal Jurisdiction
Plaintiff contends the trial court erred because sufficient
minimum contacts existed to give North Carolina courts personal
jurisdiction over defendant. The test for establishing in
personam personal jurisdiction over a foreign [defendant] is
two-fold: first, 'Whether North Carolina's 'long-arm' statute
permits courts in this jurisdiction to entertain the action;' and
second, 'whether exercise of this jurisdictional power comportswith due process of law.' Fran's Pecans, Inc. v. Greene, 134 N.C.
App. 110, 112, 516 S.E.2d 647, 649 (1999) (quoting ETR Corporation
v. Wilson Welding Service, 96 N.C. App. 666, 668, 386 S.E.2d 766,
767 (1990)).
A. Long-Arm Statute
North Carolina's long-arm statute, N.C. Gen. Stat. § 1-75.4,
is to be liberally construed in favor of finding jurisdiction.
Starco, Inc. v. AMG Bonding and Ins. Services, 124 N.C. App. 332,
338, 477 S.E.2d 211, 216 (1996).
The statute allows the exercise of personal
jurisdiction in any action claiming injury to
person or property within this State arising
out of an act or omission outside this State
by the defendant, provided in addition that at
or about the time of the injury . . . :
a. solicitation or services
activities were carried on within
this State by or on behalf of the
defendant . . . .
Fran's Pecans, Inc., 134 N.C. App. at 113, 516 S.E.2d at 649
(citing N.C. Gen. Stat. § 1-75.4(4)(a) (1996)). To exercise
personal jurisdiction over a foreign [defendant], the plaintiff
must establish: 1) an action claiming injury to a North Carolina
person or property; 2) that the alleged injury arose from
activities by the defendant outside of North Carolina; and 3) that
the defendant was engaging in solicitation or services within North
Carolina at or about the time of the injury. Fran's Pecans, Inc.,
134 N.C. App. at 113, 516 S.E.2d at 649-650 (citation omitted).
Here, the parties agree that: (1) the action involves injury
to a North Carolina resident, and (2) the injury arose fromactivities in South Carolina, outside the forum State. The facts
at bar present the question of whether defendant was engaged in
solicitation . . . within North Carolina at or about the time of
the injury. Id. This Court has held that two or three visits to
North Carolina in furtherance of a contract, along with numerous
phone calls regarding that contract, is sufficient to satisfy the
third-prong of the long-arm statute test. Carson v. Brodin, ___
N.C. App. ___, ___, 585 S.E.2d 491, 495 (2003). We have also held
that statutory grounds for personal jurisdiction existed when
[d]efendants admitted coming to North Carolina and discussing the
repairs and then loading and transporting the car. Marion v.
Long, 72 N.C. App. 585, 587, 325 S.E.2d 300, 302, disc. rev.
denied, 313 N.C. 604, 330 S.E.2d 612 (1985).
Here, defendant placed advertisements in two North Carolina
newspapers. He mailed payments to North Carolina addresses to
satisfy invoices from both The Charlotte Observer and The Gaston
Gazette. These advertisements directly solicited business from
Mecklenburg and Gaston counties. Numerous North Carolina residents
crossed the state line to shop at defendant's business. We
conclude that plaintiff provided sufficient evidence of
solicitation to establish statutory jurisdiction under N.C. Gen.
Stat. § 1-75.4(4)(a) (2003).
B. Due Process
We must next consider whether the exercise of personal
jurisdiction over defendant comports with due process of law. This
Court has recognized that before a state court may subject anon-resident defendant to a judgment in personam, 'certain minimum
contacts' with the forum state must be established in order that
maintenance of the suit not 'offend traditional notions of fair
play and substantial justice.' Mabry v. Fuller-Shuwayer Co., 50
N.C. App. 245, 249, 273 S.E.2d 509, 512, cert. denied, 302 N.C.
398, 279 S.E.2d 352 (1981) (quoting International Shoe Co. v.
Washington, 326 U.S. 310, 90 L. Ed. 95 (1945)). In considering
what satisfies the minimum contacts requirement in North Carolina,
this Court has held:
The test for minimum contacts is not
mechanical, but instead requires individual
consideration of the facts in each case. The
activity must be such that defendant could
reasonably anticipate being brought into court
there. The factors to consider for minimum
contacts include: (1) the quantity of the
contacts; (2) the quality and nature of the
contacts; (3) the source and connection of the
cause of action to the contacts; (4) the
interests of the forum state; and (5) the
convenience to the parties.
Fran's Pecans, Inc., 134 N.C. App. at 114, 516 S.E.2d at 650
(internal citations omitted). We consider defendant's activities
as a whole, and not as isolated acts in determining whether
sufficient minimum contacts exist. Dumas v. R. R., 253 N.C. 501,
507, 117 S.E.2d 426, 430 (1960).
Our United States Supreme Court has held that if a foreign
[defendant] purposefully avails itself of the benefits of an
economic market in the forum State, it may subject itself to the
State's in personam jurisdiction even if it has no physical
presence in the State. Quill Corp. v. North Dakota, 504 U.S. 298,
307, 119 L. Ed. 2d 91, 103 (1992). That Court also noted adefendant purposefully avails himself by indicating an intent or
purpose to serve the market in the forum State, for example,
designing the product for the market in the forum State,
advertising in the forum State . . . . Asahi Metal Industry Co.
v. Superior Court of California, 480 U.S. 102, 112, 94 L. Ed. 2d
92, 104 (1987).
Here, defendant purposefully availed himself of North
Carolina's economic market. He solicited business by placing at
least 400 advertisements over a five-year period in two newspapers
doing business in and distributing in North Carolina. Plaintiff's
evidence shows that she became aware of The Peach Tree because of
these advertisements and that numerous North Carolina residents
also responded to these solicitations. Defendant's business is
located fifteen miles across the North Carolina border in York
County, South Carolina, and adjoins Gaston County, North Carolina
where this action was filed.
Considering these activities collectively, we conclude that
defendant targeted and marketed to a certain geographical area
within North Carolina in order to obtain financial benefit. The
quality and quantity of defendant's activities in North Carolina,
along with the lack of inconvenience of defending this action in an
adjoining county, is sufficient to allow the exercise of in
personam jurisdiction over defendant.
IV. Conclusion
The trial court erred in granting defendant's motion to
dismiss for lack of personal jurisdiction. We hold that plaintiffestablished: (1) statutory jurisdiction under North Carolina's
long-arm statute, N.C. Gen. Stat. § 1-75.4 (2003), and (2)
sufficient minimum contacts within North Carolina, such that
exercise of personal jurisdiction over defendant does not offend
traditional notions of fair play and substantial justice.
Mabry,
50 N.C. App. at 249, 273 S.E.2d at 512. The trial court's order is
reversed and this action is remanded.
Reversed and Remanded.
Judges HUDSON and STEELMAN concur.
Report per Rule 30(e).
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