LYNDA BUTLER, PLAINTIFF, VS. BEER ACROSS AMERICA; MERCHANT
DIRECT; and SHERMER SPECIALTIES, INC., DEFENDANTS.
CV99-H-2050-S
UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF
ALABAMA, SOUTHERN DIVISION
83 F. Supp. 2d 1261; 2000 U.S. Dist. LEXIS
1322; 40 U.C.C. Rep. Serv. 2d (Callaghan) 1008
February 10, 2000, Decided
February 10, 2000,
Filed; February 10, 2000, Entered
DISPOSITION:
[**1] Defendants' motion to dismiss DENIED but action TRANSFERRED to
United States District Court for Northern District of Illinois pursuant to 28
U.S.C. § 1406(a) as well as 28 U.S.C. § 1404(a).
COUNSEL: For LYNDA BUTLER, plaintiff: Kathryn H
Sumrall, GARRISON & SUMRALL PC, Birmingham, AL.
For BEER
ACROSS AMERICA, MERCHANT DIRECT, SHERMER SPECIALTIES, INC, defendants: Warren B
Lightfoot, Anne Sikes Hornsby, LIGHTFOOT FRANKLIN & WHITE LLC, Birmingham,
AL.
JUDGES: James H. Hancock, SENIOR UNITED STATES
DISTRICT JUDGE.
OPINIONBY: James H. Hancock
OPINION: [*1262]
ORDER
The Court has before it the August 6, 1999 motion of defendants Beer
Across America, Merchant Direct, and Shermer Specialties (collectively "Beer
Across America") to dismiss the present action for lack of personal
jurisdiction. n1 Pursuant to the Court's October 8, 1999 order, the motion came
under submission on December 17, 1999.
- - - - - - - - - - - - -
- - - - -Footnotes- - - - - - - - - - - - - - - - - -
n1 On September 1,
1999 the defendants filed a supplemental motion to dismiss premised upon the
Commerce Clause and the Twenty-First Amendment to the United States
Constitution. Given the disposition of Beer Across America's initial motion to
dismiss, the supplemental motion need not be considered.
- - - -
- - - - - - - - - - - - -End Footnotes- - - - - - - - - - - - - - - - -
[**2]
On June 8, 1999, plaintiff Lynda Butler initiated the
present action by filing a complaint in the Circuit Court of Shelby County,
Alabama. The complaint asserts a claim under the Civil Damages Act, section
6-5-70 of the Alabama Code, arising from the sale of beer to plaintiff's son,
Hunter Butler, by the defendants via the Internet. (See Compl. PP 1-2.) The
Civil Damage Act n2 provides for a civil action by the [*1263]
parent or guardian of a minor against anyone who knowingly and illegally sells
or furnishes liquor to the minor. See Ala. Code § 6-5-70 (1993). On August 6,
1999 defendants timely removed the action to this Court; removal was based upon
diversity of citizenship given that plaintiff is a citizen of Alabama and that
the defendants are three related Illinois corporations engaged in the marketing
and sale of alcoholic beverages and other, complementary merchandise. Upon
removal, the defendants simultaneously moved for dismissal.
- - -
- - - - - - - - - - - - - - -Footnotes- - - - - - - - - - - - - - - - - -
n2 The full text of the Alabama Civil Damages Act reads as follows:
Either parent of a minor, guardian, or a person standing in loco
parentis to the minor having neither father nor mother shall have a right of
action against any person who unlawfully sells or furnishes spiritous liquors
to such minor and may recover such damages as the jury may assess, provided
the person selling or furnishing liquor to the minor had knowledge or was
chargeable with notice or knowledge of such minority. Only one action may be
commenced for each offense under this section.
Ala. Code.
§ 6-5-70 (1993).
- - - - - - - - - - - - - - - - -End Footnotes-
- - - - - - - - - - - - - - - - [**3]
The issue of personal
jurisdiction presented in this case has been briefed extensively by both parties
and the Court has received numerous evidentiary submissions. First, on August
12, 1999 defendants filed the August 9, 1999 affidavit of Louis A Amoroso. On
August 30, 1999 plaintiff submitted evidence in opposition to the motion to
dismiss. n3 Defendants then filed an initial brief in support of their motion to
dismiss on September 10, 1999. Plaintiff responded on September 13, 1999 with a
brief in opposition to dismissal n4 and on October 4, 1999 with a supplemental
brief. Oral argument was held at the Court's regular motion docket on October 8,
1999, following which the Court allowed limited discovery on the issue of
personal jurisdiction. (See Oct. 12, 1999 Order.) Following a period of limited
discovery, plaintiff made evidentiary submissions on November 15, 1999. n5 Next
defendants filed a supplemental brief in support of their motion to dismiss on
November 29, 1999, and, finally, on December 10, 1999 plaintiff filed a response
to the defendants' supplemental brief with attached excerpts from plaintiff's
November 15, 1999 evidentiary submissions. Defendants' motion is now
[**4] ripe for consideration.
- - - - - - - - - - - -
- - - - - -Footnotes- - - - - - - - - - - - - - - - - -
n3 Plaintiff
submitted an invoice from defendant Merchant Direct, a copy of the Something's
Brewing newsletter, and printed copies of pages from www.beeramerica.com.
n4 Attached to the motion as exhibits were copies of the same evidence
submitted on August 30, 1999.
n5 Plaintiff submitted as Exhibit A the
November 3, 1999 deposition of Louis A. Amoroso with attached deposition
exhibits and as Exhibit B a number of invoices and correspondence with two
Alabama brewers.
- - - - - - - - - - - - - - - - -End Footnotes-
- - - - - - - - - - - - - - - -
The burden of establishing personal
jurisdiction over a nonresident defendant is on the plaintiff. See Robinson v.
Giarmarco & Bill, P.C., 74 F.3d 253, 255 (11th Cir. 1996). To survive a
defendant's motion to dismiss for lack of personal jurisdiction, the plaintiff
must demonstrate a prima facie case of personal jurisdiction, which requires the
presentation of evidence sufficient to withstand a motion for a directed
verdict. See Cable/Home Communication v. Network Prods., 902 F.2d 829, 855 (11th
Cir. 1990). [**5] In considering whether such a showing has been
made, the court must accept as true all uncontroverted facts alleged in the
complaint and must also draw all reasonable inferences arising from controverted
assertions of fact in the light most favorable to the plaintiff. See Robinson,
74 F.3d at 255.
Questions of personal jurisdiction require an
application of general legal principles to the particular facts contained in the
complaint and in the parties' evidentiary submissions. See Alexander Proudfoot
Co. World Hqtrs. L.P. v. Thayer, 877 F.2d 912, 914 (11th Cir. 1989). Here, the
facts are simple. In early April of 1999, plaintiff's minor son, who apparently
was left home unsupervised (but with a credit card issued in his name) while his
parents vacationed, placed an order for twelve bottles of beer with defendants
through Beer Across America's Internet site on the World Wide Web. Under the
applicable [*1264] provisions of the U.C.C., the sale occurred in
Illinois. n6 The beer was then shipped to plaintiff's son in Alabama and
delivered to the Butler residence by the carrier acting, the entire time, as the
agent of the plaintiff's son. The sale was not discovered [**6] by
plaintiff until she returned home and found several bottles of beer from the
shipment remaining in the family's refrigerator. Together, these facts present
the following question: whether personal jurisdiction properly may be asserted
by a federal court sitting in diversity in Alabama over a nonresident Illinois
defendant in an action arising from a sale made in Illinois solely in response
to an order placed by an Alabama resident via the Internet?
- - -
- - - - - - - - - - - - - - -Footnotes- - - - - - - - - - - - - - - - - -
n6 According to the sales invoice and the shipping documents, the beer
was essentially sold F.O.B. seller, with the carrier acting as the buyer's
agent. The sales invoice and shipping documents also correctly note that
ownership of the goods passed to plaintiff's son upon tender to the carrier,
which is consistent with both Alabama's and Illinois's versions of the U.C.C.,
providing that title passes at the time and place of shipment when the contract
does not require the seller to make delivery at the destination. See Ala. Code §
7-2-401(2)(a) (1997); 810 Ill. Comp. Stat. 5/2-401(2)(a) (West 1999). Under both
codes, "[a] 'sale' consists in the passing of title from the seller to the buyer
for a price." Ala. Code § 7-2-106(1) (1997); 810 Ill. Comp. Stat. 5/2-106(1)
(West 1999). Clearly, then, the sale was completed in Illinois. That the place
of sale was Illinois is strengthened by the fact that the invoice included a
charge for sales tax but no charge for beer tax; Alabama law requires that sales
tax be collected for the out-of-state sale of goods which are then shipped to
the purchaser in Alabama but requires that beer tax be collected on only sales
made within Alabama. Compare Ala. Code §§ 28-3-184(a), -190(a) (1998) (providing
for excise taxes on beer sales) with Ala. Code 40-23-1(5) (1998) (defining "sale
or sales" for purposes of the sales tax). This case is no different than one in
which a person has purchased duty free items in a distant locale and then
arranged for their shipment to that person's regular residence.
-
- - - - - - - - - - - - - - - -End Footnotes- - - - - - - - - - - - - - - - -
[**7]
Having framed the issue, the Court turns to the
multi-part analysis implicated by this question. The first part of the analysis
requires a consideration of state law because the reach of a federal diversity
court's jurisdictional power over a nonresident defendant may not exceed the
limits allowed under state law. See Robinson, 74 F.3d at 256; Madara v. Hall,
916 F.2d 1510, 1514 (11th Cir. 1990); Cable/Home, 902 F.2d at 855; Alexander
Proudfoot, 877 F.2d at 919; Brown v. Astron Enters., Inc., 989 F. Supp. 1399,
1403 (N.D. Ala. 1997). If a basis for personal jurisdiction is found under the
state's long arm statute, the court then conducts a two-part due process
analysis. See Madara, 916 F.2d at 1514; Brown, 989 F. Supp. at 1403.
As
one arm of the due process analysis, the court initially must determine whether
at least minimum contacts exist between the defendant and the jurisdiction. See
Madara, 916 F.2d at 1514, 1515-16; Cable/Home, 902 F.2d at 857. The significant
question is whether "the defendant's conduct and connection with the
[**8] forum State are such that he should reasonably anticipate
being haled into court there"? World-Wide Volkswagen Corp. v. Woodson, 444 U.S.
286, 297, 62 L. Ed. 2d 490, 100 S. Ct. 559 (1980). The level and nature of such
conduct and connections may support either general or specific jurisdiction. See
Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414, 80 L. Ed.
2d 404, 104 S. Ct. 1868 (1984). See also Madera, 916 F.2d at 1516 n.7;
Cable/Home, 902 F.2d at 857 n.41. General jurisdiction may be exercised when a
defendant's contacts with the forum are sufficiently numerous, purposeful, and
continuous, as to render fair an assertion of power over the defendant by that
state's courts no matter the nature or extent of the relationship to the forum
entailed in the particular litigation; if general jurisdiction is established,
absolutely no connection need be shown between the state and the claim for the
defendant to be summoned constitutionally before that forum's courts. See
Helicopteros, 466 U.S. at 414-15 & n.9. In contrast, specific jurisdiction
may be based upon less extensive contacts, but jurisdiction will lie only in
[*1265] those matters which are related to [**9] or
which arise from those contacts. See id. at 414 & n.8. Regardless of the
specific or general nature of the contacts in question, for purposes of
satisfying due process, they must be purposeful on the part of the defendant;
"it is essential in each case that there be some act by which the defendant
purposefully avails itself of the privilege of conducting activities within the
forum State, thus invoking the benefits and protection of its laws." Hanson v.
Denckla, 357 U.S. 235, 253, 2 L. Ed. 2d 1283, 78 S. Ct. 1228 (1958). See also
Shaffer v. Heitner, 433 U.S. 186, 216, 53 L. Ed. 2d 683, 97 S. Ct. 2569 (1977)
("Appellants have simply had nothing to do with the State of Delaware. Moreover,
appellants had no reason to expect to be haled before a Delaware court.").
Jurisdiction will not be supported because of "random, fortuitous, or attenuated
contacts . . . or because of the unilateral activity of a third person." Madara,
916 F.2d at 1516 (citations omitted). See also Keeton v. Hustler Magazine, Inc.,
465 U.S. 770, 774, 79 L. Ed. 2d 790, 104 S. Ct. 1473 (1984) (finding that
"regular monthly sales of thousands of magazines cannot by any stretch of the
imagination be characterized as random, isolated, [**10] or
fortuitous"); Hanson, 357 U.S. at 253 ("The unilateral activity of those who
claim some relationship with a nonresident defendant cannot satisfy the
requirement of contact with the forum State."); Robinson v. Giarmarco &
Bill, P.C., 74 F.3d 253, 258 (11th Cir. 1996). However, even if minimum contacts
are found, the court must still address the second prong of the due process
analysis. See Madara, 916 F.2d at 1517.
In addition to minimum contacts,
due process mandates a consideration of the fairness in forcing the defendant to
litigate in a foreign forum. See id.; Cable/Home Communication v. Network
Prods., 902 F.2d 829, 857 (11th Cir. 1990). This fairness inquiry is rooted in
International Shoe Co. v. Washington, 326 U.S. 310, 90 L. Ed. 95, 66 S. Ct. 154
(1945), and its pronouncement that a nonresident defendant must "have certain
minimum contacts with [the forum] such that maintenance of the suit does not
offend 'traditional notions of fair play and substantial justice.'"
International Shoe, 326 U.S. at 316 (quoting Milliken v. Meyer, 311 U.S. 457,
463, 85 L. Ed. 278, 61 S. Ct. 339 (1940)). To answer this inquiry into
[**11] "fair play and substantial justice," the court will examine
the nature of the defendant's contacts with the forum in light of additional
factors, including the burdens on the defendant of litigating in the foreign
forum; the interests of the forum state in overseeing the litigation; the
interests of the plaintiff in efficient, substantial relief; the interests of
the interstate judicial system in economical dispute resolution; and the joint
interests of the states in promoting basic social policies. See Burger King
Corp. v. Rudzewicz, 471 U.S. 462, 476-77, 85 L. Ed. 2d 528, 105 S. Ct. 2174
(1985) (quoting World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 292, 62 L.
Ed. 2d 490, 100 S. Ct. 559 (1980)); Madara, 916 F.2d at 1517 (citing Burger
King, 471 U.S. at 477; World-Wide Volkswagen, 444 U.S. at 292). These additional
factors may be used to bolster a conclusion that the exercise of personal
jurisdiction is actually proper when fewer than the otherwise sufficient number
of minimum contacts are present or to defeat jurisdiction in the face of strong
evidence of otherwise sufficient, purposeful connections between the defendant
and the forum state. See Burger King, 471 U.S. at 477. [**12] In
summary, only if the forum state's laws permit jurisdiction over the nonresident
defendant and both prongs of the due process inquiry are satisfied may that
defendant constitutionally be haled into the forum state's courts. See Robinson
v. Giarmarco & Bill, P.C., 74 F.3d 253, 256 (11th Cir. 1996). The Court now
applies this extended analysis to the facts of the present case.
The
Court's initial inquiry concerns the reach of Alabama's long arm statute, which
this Court must interpret as would an Alabama state court. See id. at 256-57.
[*1266] The Alabama long arm statute provides, in part, as follows:
A person has sufficient contacts with the state when that
person . . . otherwise having some minimum contact with this state and, under
the circumstances, it is fair and reasonable to require the person to come to
this state to defend an action . . . so long as the prosecution of the action
against a person in this state is not inconsistent with the constitution of
this state or the Constitution of the United States.
Ala.
R. Civ. P. 4.2(a)(2)(I). Consequently, the reach of Alabama's long arm
jurisdiction extends to the full limits of federal [**13] due
process. See Martin v. Robbins, 628 So. 2d 614, 617 (Ala. 1993); Ex parte Pope
Chevrolet, Inc., 555 So. 2d 109, 110 (Ala. 1989); Dillon Equities v. Palmer
& Cay, Inc., 501 So. 2d 459, 461 (Ala. 1986). See also Brown v, Astron
Enters., Inc., 989 F. Supp. 1399, 1404 (N.D. Ala. 1997). Because Alabama's
nonresident personal jurisdiction is coextensive with the constitutional
requirements of due process, the state law and due process analyses collapse
into a single inquiry, to which the court now turns. See Brown, 989 F. Supp. at
1404.
Regarding the minimum contacts element of due process analysis,
plaintiff asserts that defendants' contacts with the state of Alabama are
sufficient for either general or specific jurisdiction. To support general
jurisdiction, the plaintiff cites not only the sale to her son but also the
defendants' sales (in Illinois) to other Alabama residents as well as the sale
of beer to defendants by two Alabama brewers through a non-party Illinois
wholesaler. However, the plaintiff has not offered any competent evidence to
seriously controvert the defendants' averments that they [**14] are
not registered to do business in Alabama; that they own no property in the
state; that they maintain no offices in the state; that they have no agents in
Alabama; that their key personnel have never even visited the state; and that
they do not place advertisement with Alabama media outlets (except for what
nationally placed advertisements may reach the state) or engage in any other
significant promotions targeting the state, which would rise to such a level as
would justify an exercise of general jurisdiction by this state's courts. What
plaintiff has offered is simply not sufficient to conclude that Beer Across
America can be brought before an Alabama tribunal for any claim that any
plaintiff may bring. See Helicopteros Nacionales de Colombia v. Hall, 466 U.S.
408, 410-11, 416-419, 80 L. Ed. 2d 404, 104 S. Ct. 1868 (1984) (finding no
general jurisdiction where the nonresident defendant's C.E.O. had visited the
forum state for contract negotiations, the defendant had accepted checks drawn
on a bank located in the forum state, the defendant had purchased more than $
4,000,000.00 in equipment from a supplier in the forum state over several years,
and the defendant had sent personnel to the forum state [**15] for
training); Rosenberg Bros. & Co. v. Curtis Brown Co., 260 U.S. 516, 517-18,
67 L. Ed. 372, 43 S. Ct. 170 (1923) (finding no jurisdiction where defendant's
contacts with state consisted of periodic purchases of large quantities of its
retail stock from firms in the forum state and regular business trips to the
forum state in connection to those purchases). Cf. Perkins v. Benguet Consol.
Mining Co., 342 U.S. 437, 447-49, 96 L. Ed. 485, 72 S. Ct. 413 (1952) (finding
that due process would not be offended by an exercise of general jurisdiction
over a corporate defendant where the defendant had systematically and
continuously conducted a portion of its general corporate activities in the
forum state).
Although specific jurisdiction presents a different
question, the ultimate answer is the same. Alabama courts have found sufficient
minimum contacts to support in personam jurisdiction over nonresident defendants
in other actions related to out-of-state sales of goods to Alabama residents for
use in this state, but the contacts in those cases differed both in kind and
extent from the de minimis connections in the instant case. See Lowry v. Owens,
621 So. 2d 1262 (Ala. 1993); Ex parte Pope Chevrolet, Inc., 555 So. 2d 109 (Ala.
1989); [**16] Atlanta Auto Auction, Inc. v. G & G Auto
[*1267] Sales, Inc., 512 So. 2d 1334 (Ala. 1987). First, the Alabama
state court cases involved the sale of automobiles, with each transaction
presumably worth thousands of dollars, as opposed to the less than $ 25.00
purchase here. More important than the size of the purchases, however, the
sellers in Lowry, Pope, and Atlanta Auto Auction, had actively courted the
Alabama market through advertisements on regional and local radio stations, in
regional newspapers, and through the mails. See Lowry, 621 So. 2d at 1264-66
(discussing evidence that the defendant had placed advertisements reasonably
calculated to reach Alabama residents on an Alabama radio station and on
Mississippi radio and television stations that broadcast into Alabama); Pope,
555 So. 2d at 110, 114 (noting that the defendant had advertised in a regional
newspaper and on a regional television station that reach Alabama residents);
Atlanta Auto Auction, 512 So. 2d at 1335 (discussing the fact that defendant had
for many years regularly solicited business from plaintiff and other Alabama
residents through direct [**17] mail brochures). Evidence was also
offered in one case that the defendant's agent had even solicited sales within
Alabama. See Lowry, 621 So. 2d at 1264. Here, Beer Across America does not
advertise with local or regional media specifically targeting the Alabama
market, n7 and plaintiff's son was never directly solicited by defendants by any
means prior to placing his order. Also, in the Lowry case as in Atlanta Auto
Auction, the sale in question was not an isolated transaction but one in a
series of car sales made by the same defendant to the same Alabama plaintiff
over a number of years. See Lowry, 621 So. 2d at 1263; Atlanta Auto Auction, 512
So. 2d at 1335. And the defendant in Pope regularly sold to Alabama residents on
an annual basis automobiles collectively worth more than $ 100,000.00. See Pope,
555 So. 2d at 113. In contrast, Beer Across America did not enter into any
continuing relationship with plaintiff's son, but rather made a single sale
amounting to $ 24.95. n8 The defendants' total sales, including nonalcoholic
merchandise, to Alabama residents for use in the state represent, on average,
[**18] only a few hundred orders per year, which combined are worth
significantly less than $ 100,000.00, with Internet orders, such as plaintiff's
son's, accounting for a mere three to four percent of that total. See Asahi
Metal Indus. Co. v. Superior Court, 480 U.S. 102, 122, 94 L. Ed. 2d 92, 107 S.
Ct. 1026 (1987) (Stevens, J., concurring in part and concurring in the judgment)
(suggesting that the value and volume of sales affect the determination of
purposeful availment). Cf. Keeton v. Hustler Magazine, Inc., 465 U.S. 770, 774,
79 L. Ed. 2d 790, 104 S. Ct. 1473 (1984) (finding monthly sales of thousands of
copies of defendant's magazine in the forum state sufficient to support personal
jurisdiction). That plaintiff's son's order was placed over Beer Across
America's Internet site on the World Wide Web is another important distinction
between the instant case and prior Alabama decisions, which all involved some
degree of personal interaction between the plaintiffs and the nonresident
defendants or their agents, and warrants some additional consideration.
- - - - - - - - - - - - - - - - - -Footnotes- - - - - - - - - - -
- - - - - - -
n7 Beer Across America does engage in national
advertising, but such placements cannot be said to target any particular market
simply because that advertising reaches a particular state. See Seymour By and
Through Seymour v. Bell Helmet Corp., 624 F. Supp. 146, 149 (M.D. Ala. 1985)
(finding that national advertising campaign could not establish continuous and
systematic contacts with Alabama merely because it reached the state). The
implications of Beer Across America's Internet site will be discussed later in
this order. [**19]
n8 Although the sale to plaintiff's son
purported to enroll him into a "club" that would send additional, monthly
shipments of specially selected lagers and ales, the terms of sale clearly
reveal that any future commitment was purely illusory as plaintiff's son was
free at any time to terminate his "club" membership without penalty. In reality,
plaintiff purchased and received a single shipment of beer and had the
non-binding option to make additional, future purchases.
- - - -
- - - - - - - - - - - - -End Footnotes- - - - - - - - - - - - - - - - -
The fact that many companies have established virtual beachheads on the
Internet [*1268] and the fact that the Internet is now accessible
from almost any point on the globe have created complex, new considerations in
counting minimum contacts for purposes of determining personal jurisdiction.
Recently, the Fifth Circuit adopted the carefully considered opinion of Zippo
Mfg. Co. v. Zippo Dot Com, Inc., 952 F. Supp. 1119 (W.D. Pa. 1997), for
analyzing Internet contacts. See Mink v. AAAA Development LLC, 190 F.3d 333, 336
(5th Cir. 1999). Under Zippo, as adopted in Mink, jurisdiction is proper when
[**20] the "defendant clearly does business over the Internet by
entering into contracts with residents of other states which 'involve the
knowing and repeated transmission of computer files over the Internet . . . .'"
Mink, 190 F.3d at 336 (quoting Zippo, 952 F. Supp. at 1124.) In personam
jurisdiction is improper, however, when the nonresident defendant has
established a passive Internet site, which acts as little more than an
electronic billboard for the posting of information. See Mink, 190 F.3d at 336
(citing Zippo, 952 F. Supp. at 1124). Between those two extremes lies a gray
area "where a defendant has a website that allows a user to exchange information
with a host computer"; there, the determination turns on the nature of the
information transmitted and on the degree of interaction. See Mink, 190 F.3d at
336. Applying these principles to the present case, clearly Beer Across
America's site does not even anticipate the regular exchange of information
across the Internet, much less provide for such interaction. Rather, it is
closer to an electronic version of a postal reply card; the limited degree
[**21] of interactivity available on the defendants' website is
certainly insufficient to satisfy the minimum contacts requirement of due
process for this Court to exercise personal jurisdiction over these defendants.
Furthermore, considerations of "fair play and substantial justice" do
not support personal jurisdiction over the nonresident defendants in this
action. See International Shoe Co. v. Washington, 326 U.S. 310, 316, 90 L. Ed.
95, 66 S. Ct. 154 (1945). As noted previously, apart from minimum contacts,
courts also consider the burdens on the nonresident defendant of litigating in
the forum; the interests of the forum state in the litigation; the interests of
the plaintiff in substantial relief; the interests of the interstate judicial
system in efficiency; and the joint interests of the states in encouraging
essential social policies. See Burger King Corp. v. Rudzewicz, 471 U.S. 462,
476-77, 85 L. Ed. 2d 528, 105 S. Ct. 2174 (1985) (quoting World-Wide Volkswagen
Corp. v. Woodson, 444 U.S. 286, 292, 62 L. Ed. 2d 490, 100 S. Ct. 559 (1980)).
The Court recognizes that "modern transportation and communication have made it
much less burdensome for a party sued to defend himself in a [distant] State,"
but the difficulties of geography [**22] still impose a not
insubstantial burden on a defendant seeking to mount an effective defense
against a potentially substantial claim in a remote jurisdiction to which that
party has no real ties. McGee v. International Life Ins. Co., 355 U.S. 220, 223,
2 L. Ed. 2d 223, 78 S. Ct. 199 (1957). Although Alabama has a legitimate
interest in protecting its residents, it has no interest in effectively
regulating out-of-state sales of alcohol. See, e.g., Healy v. The Beer Inst.,
491 U.S. 324, 105 L. Ed. 2d 275, 109 S. Ct. 2491 (1989); Brown-Forman Distillers
Corp. v. New York State Liquor Auth., 476 U.S. 573, 90 L. Ed. 2d 552, 106 S. Ct.
2080 (1986). Similarly, plaintiff claims no actual injuries but merely seeks to
punish and deter defendants, yet the state of Illinois has criminal and
administrative procedures in place to accomplish the same task. See 235 Ill.
Comp. Stat. 5/6-16 (West 1999). Finally, judicial efficiency and the joint
interests of the individual states in promoting substantive social goals both
weigh in favor of allowing each state to use its existing procedures to combat
the illegal sale of alcohol within its borders. Fairness and justice simply do
not warrant an exercise of in personam jurisdiction in this case despite
[**23] the lack of minimum contacts. See Burger King, 471 U.S. at
477 (commenting that additional factors may bolster a finding of jurisdiction
even in the absence of minimum contacts).
[*1269] In
conclusion, the Court finds that plaintiff has failed to make a prima facie case
of personal jurisdiction over the defendants. The defendants lack minimum
contacts with Alabama and considerations of fairness and substantial justice do
not favor an assertion of personal jurisdiction by this Court. However, simply
because this Court lacks jurisdiction does not mean that the defendants are
completely immune from plaintiff's suit. The evidence offered both in support of
and in opposition to Beer Across America's motion to dismiss leads the Court to
find that personal jurisdiction would be proper in the Northern District of
Illinois. Therefore, the defendants' motion to dismiss is DENIED but this action
is hereby TRANSFERRED to the United States District Court for the Northern
District of Illinois pursuant to 28 U.S.C. § 1406(a), as well as 28 U.S.C. §
1404(a). n9 See 28 U.S.C. §§ 1404(a), 1406(a) (1994) (providing for
[**24] a transfer of venue).
- - - - - - - - - - - -
- - - - - -Footnotes- - - - - - - - - - - - - - - - - -
n9 This transfer
of venue is premised upon section 1404(a) as well as section 1406(a) because the
interests of justice would not be served were this Court to retain venue under
the improbable possibility that it has personal jurisdiction only to be reversed
later by the Eleventh Circuit, causing whatever ultimate result this Court may
have reached to be upset and necessitating both further litigation by the
parties and the consumption of additional judicial resources.
- -
- - - - - - - - - - - - - - -End Footnotes- - - - - - - - - - - - - - - - -
DONE this 10th day of February, 2000.
James H. Hancock
SENIOR UNITED STATES DISTRICT JUDGE