Alamo Title Company ("Alamo"), a Texas corporation, petitions this Court for a writ of mandamus directing the Jefferson Circuit Court to vacate its order denying Alamo's motion to dismiss an action filed against it by P.B. Surf, Ltd. ("P.B. Surf"), a Florida limited partnership, and to enter an order dismissing the action for lack of personal jurisdiction. We grant the petition and issue the writ.
This dispute concerns the disbursement of proceeds from the sale of the San Paloma apartment complex in Houston, Texas. According to P.B. Surf, at the time the San Paloma sale was scheduled to close in late October 2011, a dispute arose over who was entitled to the net proceeds of the sale and where the net proceeds were to be deposited after the closing. On October 28, 2011, after the closing, Alamo wired a portion of the net proceeds from the San Paloma sale to a Birmingham Wells Fargo bank account pursuant to instructions from several of the sellers.
P.B. Surf filed a verified complaint against Alamo, as the escrow agent, and several other defendants, alleging, among other things, conspiracy. Alamo moved the trial court, pursuant to Rule 12(b)(2), Ala. R. Civ. P., to dismiss P.B. Surf's claims against it for lack of personal jurisdiction, attaching to its motion the affidavit of David Pitschmann, the senior vice president and co-general counsel for Alamo. Before the trial court ruled on Alamo's motion to dismiss, P.B. Surf filed an amended complaint, which was not verified, alleging various claims against Alamo, as the escrow agent, and several other defendants, including Guy A. Savage, and G.J. Willem Noltes, who both had an ownership interest in one of the companies that was involved in the sale of the San Paloma apartment complex, alleging that there was a conspiracy among the defendants in the wiring of funds from Alamo to the Birmingham Wells Fargo bank account. In its amended complaint, P.B. Surf alleged that Alamo was partially responsible for what it alleged was the improper distribution of the proceeds among Savage, Noltes, and P.B. Surf. The amended complaint contains the following factual averments:
In its amended complaint, P.B. Surf sought injunctive and declaratory relief. In addition, the counts in the amended complaint alleged against Alamo (1) negligence, (2) wantonness, (3) breach of contract, (4) breach of fiduciary duty, (5) fraud, (6) conversion, and (7) conspiracy, among others. In particular, as to conspiracy, P.B. Surf's amended complaint avers, in pertinent part:
The amended complaint asserted that venue for the action was proper in Jefferson County, Alabama, because, it stated, "a substantial part of the events or omissions giving rise to the claim occurred in Jefferson County."
Alamo filed a motion to dismiss P.B. Surf's amended complaint on the basis that the trial court lacked personal jurisdiction, both general and specific, over Alamo. See Rule 12(b)(2), Ala. R. Civ. P. Alamo also filed a supplement to its motion to dismiss. Attached to the supplement was the affidavit of Pitschmann. The affidavit stated:
Pitschmann's affidavit also stated:
P.B. Surf filed a response to Alamo's motion to dismiss. In that response, P.B. Surf argued that its complaint, which detailed the real-estate services provided and the disbursement of a portion of the proceeds to two of the sellers by transferring the funds to an Alabama bank account and asserted a claim of conspiracy, established personal jurisdiction. P.B. Surf did not file an affidavit or other evidence to substantiate the factual allegations in its complaint, but it did request the opportunity to conduct jurisdictional discovery "to determine Alamo's contacts with Alabama and to challenge the affidavits of David Pitschmann that Alamo filed in support of its Motion to Dismiss and Supplement."
On July 20, 2012, the trial court denied Alamo's motions to dismiss P.B. Surf's amended complaint, stating:
(Capitalization in original.) Alamo moved the trial court to reconsider, arguing that P.B. Surf had not met its evidentiary burden and that Alamo lacked sufficient contacts with Alabama to support a finding of personal jurisdiction on the basis of the conspiracy claim.
A Rule 12(b)(2) motion tests the court's exercise of personal jurisdiction over a defendant. See Rule 12(b), Ala. R. Civ. P. "`[A] petition for a writ of mandamus is the proper device by which to challenge the denial of a motion to dismiss for lack of in personam jurisdiction.' Ex parte Dill, Dill, Carr, Stonbraker & Hutchings, P.C., 866 So.2d 519, 525 (Ala.
Ex parte Bufkin, 936 So.2d 1042, 1044 (Ala.2006). "`An appellate court considers de novo a trial court's judgment on a party's motion to dismiss for lack of personal jurisdiction.'" Ex parte Lagrone, 839 So.2d 620, 623 (Ala.2002) (quoting Elliott v. Van Kleef, 830 So.2d 726, 729 (Ala.2002)). But see Allsopp v. Bolding, 86 So.3d 952, 957-58 (Ala.2011) (recognizing that deference is due to pertinent trial court factual findings to the extent those findings are based on evidence received ore tenus).
Additionally, the appropriate analysis and the parties' respective evidentiary burdens on a personal-jurisdiction issue are well settled. "`"The plaintiff has the burden of proving that the trial court has personal jurisdiction over the defendant."'" Ex parte McNeese Title, 82 So.3d at 674 (quoting Ex parte Excelsior Fin., Inc., 42 So.3d 96, 103 (Ala.2010), quoting in turn J.C. Duke & Assocs. Gen. Contractors, Inc. v. West, 991 So.2d 194, 196 (Ala.2008)).
Ex parte Excelsior Fin., Inc., 42 So.3d at 103.
Alamo essentially makes two arguments for the trial court's lack of personal jurisdiction over it. First, Alamo argues that it showed that the trial court lacked both general and specific jurisdiction over it and that P.B. Surf did not satisfy its burden of substantiating the jurisdictional allegations of its complaint. In particular, Alamo contends that it is a Texas corporation with no offices, employees, or business operations in Alabama and that its only contact with Alabama came when two defendants in this case, Savage and Noltes, contacted an Alamo employee and, as authorized representatives of the seller, instructed Alamo to wire approximately $2.2 million in sale proceeds to the seller's bank account in Alabama. Alamo argues that this limited one-time transaction and its nominal contact with Alabama are insufficient to satisfy the due-process requirements of the Constitution and to justify an Alabama court's exercising personal jurisdiction over it. Second, Alamo argues that P.B. Surf's conspiracy allegations in its amended complaint are insufficient to establish jurisdiction. Alamo denies that it was a part of any conspiracy when it instructed its bank to wire the net proceeds in its possession to the Wells Fargo account in Alabama owned by the seller, San Paloma Partners. We consider these arguments in turn.
Rule 4.2(b), Ala. R. Civ. P., permits Alabama courts to exercise personal jurisdiction over an out-of-state defendant. It provides, in pertinent part, as follows:
Regarding Rule 4.2(b), this Court has said:
Ex parte DBI, Inc., 23 So.3d 635, 643 (Ala.2009). See also Ex parte McNeese Title, 82 So.3d at 673.
Elliott v. Van Kleef, 830 So.2d at 730-31.
A defendant is constitutionally amenable to a forum's specific jurisdiction if it possesses sufficient minimum contacts with the forum to satisfy due-process requirements and if the forum's exercise of jurisdiction comports with "`traditional notions of fair play and substantial justice.'" International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945) (quoting Milliken v. Meyer, 311 U.S. 457, 463, 61 S.Ct. 339, 85 L.Ed. 278 (1940)). See Ex parte Kohlberg Kravis Roberts & Co., 78 So.3d 959, 972 (Ala.2011) (quoting Ex parte McInnis, 820 So.2d 795, 802-03 (2001)). This two-part test embodies the controlling due-process principle that a defendant must have "fair warning" that a particular activity may subject it to the jurisdiction of a foreign sovereign. Burger King Corp. v. Rudzewicz, 471 U.S. 462, 472, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985). See Ex parte Kohlberg Kravis Roberts & Co., 78 So.3d at 970.
We first consider Alamo's contention that the trial court lacked both general and specific jurisdiction over it. In response to Alamo's argument, P.B. Surf acknowledges that the trial court lacked
Over the course of the development of minimum-contacts analysis following International Shoe Co. and its progeny, this Court, in Elliott v. Van Kleef, supra, and its progeny, has essentially formulated a test for ascertaining whether there are sufficient minimum contacts for a court to exercise specific personal jurisdiction over a nonresident defendant: (1) The nonresident defendant's contacts must be related to the plaintiff's cause of action or have given rise to it. Ex parte Kohlberg Kravis Roberts & Co., 78 So.3d at 971 (citing Burger King Corp. v. Rudzewicz, 471 U.S. at 472, 105 S.Ct. 2174).(2) By its contacts the nonresident defendant must have purposefully availed itself of the privilege of conducting business in the forum state.
Considering the minimum-contacts analysis in the context of specific personal jurisdiction, this Court concludes that the requisite minimum contacts for the trial court's exercise of specific jurisdiction over Alamo do not exist. First, the allegations in the amended complaint and the evidence before the court establish that, as a result of the Alamo's performance as escrow agent in the underlying transaction, Alamo had telephone and electronic-mail communications with Savage and Noltes. Alamo, at the direction of Savage and Noltes, two of several sellers, wired sale proceeds from its bank account in Texas to a bank account
However, P.B. Surf's assertion of personal jurisdiction fails when the second prong of the minimum-contacts analysis is considered. "The issue of personal jurisdiction `"stands or falls on the unique facts of [each] case."'" Ex parte Citizens Prop. Ins. Corp., 15 So.3d 511, 515 (Ala.2009) (quoting Ex parte I.M.C., Inc., 485 So.2d 724, 725 (Ala.1986)). The evidence before this Court gives no indication that Alamo "purposefully availed" itself of the protection of the laws of Alabama or that it should reasonably have expected to be haled into court here. As previously noted, Alamo had virtually no contact with Alabama other than telephone and electronic-mail communications and the wiring of funds from the Texas bank account to the Alabama bank account in relation to the real-estate transaction. See, e.g., Elliott v. Van Kleef, 830 So.2d at 731 ("[T]he telephone calls, fax transmissions, and letters from Kizer and Elliott to Van Kleef are irrelevant to whether personal jurisdiction over Van Kleef exists, because these calls and faxes were `the unilateral activity of another person.'" (quoting Burger King Corp., 471 U.S. at 475, 105 S.Ct. 2174)), and Kittle Heavy Hauling v. Gary A. Rubel, Inc., 647 So.2d 743, 744 (Ala.Civ.App. 1994) ("The use of an interstate facility (i.e., telephone) is an ancillary factor and does not, alone, provide the requisite minimum contacts."). See also Ex parte No. 1 Steel Prods., Inc., 76 So.3d 805, 812 (Ala. 2011) ("We have in previous cases explicitly recognized that a one-time contract for the purchase of goods is an insufficient basis for jurisdiction."); Vista Land & Equip., L.L.C. v. Computer Programs & Sys., Inc., 953 So.2d 1170, 1177 (Ala.2006) ("[O]ur caselaw does not authorize the exercise of personal jurisdiction over a nonresident defendant solely on the basis of contracts it may have entered into with Alabama parties; rather, such jurisdiction is authorized when there is an ongoing contractual relationship supported by the additional contacts that are incidental to such a relationship."). Alamo is not incorporated, licensed, registered, or authorized to do business in Alabama. Alamo does not have offices, agents, or bank accounts in Alabama, nor does it have officers or employees located in Alabama. There is no evidence indicating that any Alamo employee traveled to Alabama in connection with this transaction. Moreover, there is simply no evidence indicating that Alamo initiated any contact whatsoever with Alabama concerning the real-estate transaction at issue. The evidence establishes that Alamo was contacted in Texas by Savage and Noltes, two of the sellers involved in this transaction, who contacted Alamo from Alabama. Further, none of the closing documents were executed in or delivered to Alabama, the escrow funds were not held in Alabama, the real property was not sold to a purchaser in Alabama, and the real-estate transaction was not closed in Alabama. Finally, the real property, the San Paloma apartment complex, was located in Texas, not Alabama. Cf. Bowling v. Founders Title Co., 773 F.2d 1175 (11th Cir.1985) (finding that Alabama had personal jurisdiction over a California defendant who made misrepresentations by telephone and mail to an Alabama plaintiff regarding a transaction the out-of-state defendant knew involved the sale of land located in Alabama).
Ex parte United Ins. Cos., 936 So.2d 1049, 1053-54 (Ala.2006). See also Ex parte Excelsior Fin., Inc., 42 So.3d at 101.
P.B. Surf's complaint, as amended, alleges that Alamo was a part of the conspiracy because it wired the net proceeds of the sale into an Alabama bank account. In support of its motion to dismiss, Alamo submitted an affidavit stating (1) that "Alamo did not conspire with any of the defendants, or any other person or entity, to wrong, injure, damage, defraud, and/or deceive P.B. Surf, and/or to convert the `Net Proceeds'"; (2) that Alamo followed Savage's and Noltes's direction on the morning of October 28, 2011, who, as sellers, had the authority to instruct Alamo; (3) that Alamo transferred the net proceeds from the real-estate closing to the proper entity at the proper bank account; (4) that the Wells Fargo bank account had been recently identified by Patrick Hayes, an attorney representing Savage and P.B. Surf's principal David Brannen during the closing, on the afternoon of October 27, 2011; and (5) that Alamo did not stand to benefit in any way from the distribution of the net proceeds to San Paloma Partners, L.P., Savage, or Noltes. This affidavit testimony was sufficient to shift the burden to P.B. Surf to present evidence substantiating that jurisdiction existed over Alamo under a conspiracy theory. See Excelsior Fin., 42 So.3d at 103; Ex parte Covington Pike Dodge, 904 So.2d 226, 229-30 (Ala.2004). However, P.B. Surf did not submit any
Considering the quality, nature, and extent of Alamo's contacts with Alabama, as well as the association between those contacts and the instant litigation, this Court finds that none of Alamo's contacts with Alabama can support a finding of purposeful activity invoking the benefits and protections of Alabama courts. Although Alamo's contacts were tangentially related to Alabama, this Court finds that the "`nature and quality and the circumstances of their commission' create only an `attenuated' affiliation with" Alabama. Burger King Corp., 471 U.S. at 476 n. 18, 105 S.Ct. 2174 (citations omitted).
In sum, P.B. Surf has acknowledged that Alamo's contacts with Alabama were not continuous and systematic so as to support the trial court's exercise of general personal jurisdiction over Alabama. This Court concludes, based on an analysis of minimum-contacts factors, that the trial court's exercise of specific personal jurisdiction over Alamo is also unsupported. Therefore, the petition for a writ of mandamus filed by Alamo establishes a clear legal right to the dismissal of the complaint on the basis that the trial court lacked personal jurisdiction over it.
For the reasons set out above, we grant the petition for the writ of mandamus and direct the trial court to vacate its order denying Alamo's motion to dismiss and to enter an order dismissing P.B. Surf's claims against Alamo on the basis that it lacks personal jurisdiction.
PETITION GRANTED; WRIT ISSUED.
STUART, BOLIN, PARKER, WISE, and BRYAN, JJ., concur.
MURDOCK, J., concurs specially.
MOORE, C.J., dissents.
MURDOCK, Justice (concurring specially).
I concur fully in the main opinion. I write separately to address the two grounds upon which Chief Justice Moore in Part II of his dissenting opinion finds mandamus to be an inappropriate remedy in this case.
In Part II.A, the dissent concludes that mandamus is unavailable in a case such as this because Alamo Title Company ("Alamo") could have sought permission to appeal the trial court's interlocutory order denying its motion for dismissal based on lack of personal jurisdiction. In this regard, the dissent begins by comparing certain standards relating to mandamus and to Rule 5, Ala. R.App. P., permissive appeals and concluding that Rule 5 has a "far lower threshold of review." 128 So.3d at 721. With respect, I submit that the comparison made is inapt.
Specifically, the standard referenced for mandamus relief — a "clear legal right" to the relief — is the standard for actually "winning" relief in the appellate court. The standard referenced for Rule 5 — that there be a controlling question of law as to which there is "substantial ground for difference of opinion" — is merely the standard that must be met to get one's grievance
Further, the approach suggested by the dissent would mean that mandamus relief would be more freely available to litigants before the Court of Civil Appeals and the Court of Criminal Appeals, courts in which Rule 5 relief is not applicable under our rules, than to litigants before this Court.
More fundamentally, Rule 5 is indeed limited to rulings involving "questions of law" and, specifically, unsettled questions for which there is a ground for substantial difference of opinion. Such uncertainty simply is not characteristic of most disputes over subject-matter jurisdiction, in personam jurisdiction, immunity, venue, discovery, and fictitious-party practice in the context of a statute-of-limitations concern, all of which are subjects as to which legal principles are well established and as to which we repeatedly have held that mandamus relief may be appropriate. Instead, the types of disputes listed above typically turn, as does the dispute in the present case, on whether the trial court has exceeded its discretion in deciding whether the evidence presented justifies factual findings sufficient to meet a well settled legal standard.
Finally, but perhaps most importantly, there is no right to a Rule 5 certification. Granting "permission" to appeal an interlocutory order is within the wide discretion of the trial judge, and a question exists as to whether appellate relief would even be available on the ground that the trial court exceeded some measure of discretion.
In Ex parte L.S.B., 800 So.2d 574 (Ala. 2001), this Court held that the standard for whether some remedy other than mandamus is "adequate" is not whether there simply is some other remedy, e.g., an eventual appeal, but whether that other remedy is "adequate to prevent undue injury." 800 So.2d at 578. As a result, the Court noted that mandamus would lie to address certain discovery disputes, to enforce compliance with the court's mandate, to enforce a right to a jury trial, and to vacate certain interlocutory rulings in divorce cases. Id. at 578. All of these — indeed, virtually any ground for mandamus relief — could eventually be raised in an appeal from a final judgment. Yet we do not consider this to be an "adequate" remedy in many cases.
Long before L.S.B. was decided, this Court discussed the requirement that the alternative remedy be adequate to avoid the particular harm at issue:
First Nat'l Bank of Anniston v. Cheney, 120 Ala. 117, 121-22, 23 So. 733, 734 (1898) (citations omitted).
The view expressed in Cheney is consistent with the view expressed elsewhere:
2 W.F. Bailey, A Treatise on the Law of Habeas Corpus and Special Remedies 825-26 (1913) (emphasis added).
In the present case, the position expressed in Part II.B of the dissent is that mandamus does not lie to remedy the trial court's failure to dismiss the claims against Alamo for lack of in personam jurisdiction because Alamo has available to it the following alternative and allegedly adequate remedy: "`continu[ing] to challenge personal jurisdiction in ... answers to the complaint and by motions for summary judgment or at trial'" and, if unsuccessful in all of these, pursuing an appeal. 128 So.3d at 722 (quoting Ex parte United Insurance Cos., 936 So.2d 1049, 1056 (Ala. 2006)). Although the dissent cites Ex parte United Insurance Cos. for the proposition that the petitioner can in fact continue to challenge personal jurisdiction in these ways, that case does not stand for the proposition that the right to do so in a case challenging in personam jurisdiction is an "adequate remedy" that justifies the refusal of the appellate court to hear a mandamus petition.
Indeed, the very reason for the limited exceptions we have carved out to the general rule that interlocutory denials of motions to dismiss and motions for a summary judgment cannot be reviewed by way of a petition for a writ of mandamus is that there are certain defenses (e.g., immunity, subject-matter jurisdiction, in personam jurisdiction, venue, and some statute-of-limitations defenses) that are of such a nature that a party simply ought not to be put to the expense and effort of litigation. The cases recognizing the availability of mandamus relief as to such matters are countless.
Nor do I believe we should consider overruling this precedent, even in a case in which we might be asked to do so. It
MAIN, J., concurs.
MOORE, Chief Justice (dissenting).
I respectfully dissent from the issuance of a writ of mandamus in this case for two reasons: (1) the contacts of Alamo Title Company with Alabama are sufficient to establish personal jurisdiction, and (2) Alamo's failure to apply to the trial court for a permissive appeal violates a key requisite for mandamus: the absence of another adequate remedy, e.g., an appeal.
The threshold for issuing a writ of mandamus is high.
Ex parte Integon Corp., 672 So.2d 497, 499 (Ala. 1995).
Granting Alamo's petition for a writ of mandamus ignores Alamo's wrongful conduct in transferring to Alabama funds Alamo knew were, by agreement, to be interpleaded into a court in Texas, a finding made by the trial court in denying Alamo's motion to dismiss.
I begin with a look at certain undisputed facts omitted from the analysis in the majority opinion, facts that refute the picture of Alamo as a merely "accidental" defendant forced to defend a case in a distant state resulting from a single random contact.
The amended complaint states that on the day of the closing, October 27, 2011, the plaintiff, P.B. Surf, Ltd., and defendants Guy A. Savage and G.J. Willem Noltes agreed that Alamo "would interplead the net proceeds in Court in Texas so that the proper distribution of the net proceeds could be determined by a judge." The amended complaint further states:
On July 3, 2012, the trial court entered a consent judgment in favor of P.B. Surf and against defendant Savage, his wife Tamela Savage, and other related entities in the amount of $2.5 million. In entering the judgment, the court relied on oral testimony and evidence provided at hearings and on P.B. Surf's amended complaint.
Additional proceeds of the sale in the amount of $1,561,704.80 were under the control of Grandbridge Real Estate Capital, LLC. Savage and Noltes sought to convince Grandbridge to wire the funds it was holding to them also. The amended complaint states: "Grandbridge, however, refused to release the monies it held based on a simple phone call." Instead it interpleaded the money into the registry of the United States District Court for the Northern District of Alabama.
Savage and Noltes did not copy P.B. Surf on any of their communications to Alamo. Despite having actual knowledge confirmed in writing that P.B. Surf claimed an interest in the sale proceeds it was holding, Alamo did not inform P.B. Surf of the communications from Savage and Noltes, but simply followed their e-mail and telephone instructions to wire the money to an account at Wells Fargo in Birmingham controlled by Savage. P.B. Surf did not learn that the funds had been wired until two or three days later when its attorney contacted Alamo about the status of the Texas interpleader action. Savage and Noltes refused to return the proceeds of the sale, prompting this lawsuit.
Alamo claims in its opening brief that it had no knowledge of the wrongdoing of Savage and Noltes and that it was merely an innocent intermediary in an "accidental or random" contact with an Alabama bank and that its act of "merely wiring money into an account in the forum state" is insufficient to support personal jurisdiction. But Alamo does concede that it "acknowledged and agreed ... to interplead the proceeds at issue." By completely omitting from its analysis any mention of the October 27 understanding that Alamo would interplead the funds, the majority opinion portrays the wiring of the funds to Birmingham on October 28 as a simple, routine, and proper response to directions from Savage and Noltes, "who, as sellers, had the authority to instruct Alamo." 128 So.3d at 713.
Other facts also militate against a ready acceptance of the portrayal in the majority opinion of Alamo's role. The trial court has now entered a consent judgment against Savage for $2.5 million. Grandbridge Real Estate Capital, the other real-estate-servicing agent in the sale, did interplead $1.5 million of the proceeds. These two acts support P.B. Surf's contention that Alamo's disbursement of funds was not merely ministerial but at a minimum constituted negligence.
As the trial court stated in its order denying Alamo's motion to dismiss, Alamo's transfer of the sale proceeds was "in direct contravention and violation of the agreement of the parties made during the
Alamo's wiring of the funds in violation of the agreement to interplead the funds and without any notice to P.B. Surf resulted, as the trial court found, in Savage and Noltes's taking "substantial portions of the money so transferred for their own personal and business usages." Under these facts found by the trial court, P.B. Surf's negligence claim against Alamo had prima facie validity.
Under applicable law, the trial court properly exercised jurisdiction over Alamo to answer for its alleged negligence.
The plaintiff has the burden of proving that the trial court has personal jurisdiction over the defendant. Ex parte Covington Pike Dodge, Inc., 904 So.2d 226, 229 (Ala.2004). When considering a Rule 12(b)(2), Ala. R. Civ. P., motion to dismiss for want of personal jurisdiction, "`"a court must consider as true the allegations of the plaintiff's complaint not controverted by the defendant's affidavits, and `where the plaintiff's complaint and the defendant's affidavits conflict, the ... court must construe all reasonable inferences in favor of the plaintiff.'"'" Id. (quoting Wenger Tree Serv. v. Royal Truck & Equip., Inc., 853 So.2d 888, 894 (Ala.2002) (quoting other cases)).
To contradict P.B. Surf's amended complaint, Alamo supplied the affidavit of its co-general counsel David Pitschmann. The affidavit explained in detail that prior to the wiring of the funds in this matter, Alamo had no contact whatsoever with the State of Alabama. Further, Alamo "played no role in the division of the proceeds"; it transferred the proceeds "to the proper entity at the proper bank account"; and it "properly followed Savage and Noltes' instructions on the morning of October 28, 2011, which it was specifically authorized to do." These latter statements contradict the complaint, which alleges that Alamo transferred the funds in violation of the agreement to interplead the funds and without notice to the other seller claiming a right to the funds.
Insofar as the complaint and Pitschmann's affidavit conflict, the court "`"`must construe all reasonable inferences in favor of the plaintiff.'"'" Covington Pike Dodge, 904 So.2d at 229 (quoting Wenger Tree Serv., 853 So.2d at 894). P.B. Surf's amended complaint adequately pleaded negligence, a reasonable inference from Alamo's actions. The trial court was not in error in construing the conflict between the complaint and Alamo's affidavit
By omitting salient facts regarding the agreement to interplead the funds, the majority opinion improperly weighted the analysis in favor of Alamo.
Alabama's long-arm rule extends as far as the federal Due Process Clause permits. Rule 4.2(b), Ala. R. Civ. P. Under federal precedent, a single tortious act in the forum state can subject an out-of-state defendant to personal jurisdiction. "So long as it creates a `substantial connection' with the forum, even a single act can support jurisdiction." Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475 n. 18, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985). "The `substantial connection' between the defendant and the forum State necessary for a finding of minimum contacts must come about by an action of the defendant purposefully directed toward the forum State." Asahi Metal Indus. Co. v. Superior Court of California, 480 U.S. 102, 112, 107 S.Ct. 1026, 94 L.Ed.2d 92 (1987) (plurality opinion) (citation omitted). The negligent or wanton wiring of $2.2 million in closing proceeds to a Birmingham bank account controlled by an Alabama resident, who then withdraws the funds to the detriment of a legitimate claimant, is an action purposefully directed toward Alabama. In McGee v. International Life Insurance Co., 355 U.S. 220, 223, 78 S.Ct. 199, 2 L.Ed.2d 223 (1957), the Court found that execution of a single contract with an in-state resident sufficed to permit jurisdiction over an out-of-state insurance company. The trial court reasonably construed the actions of Alamo in this matter as creating a substantial connection with Alabama. As the trial court stated: "But for the uncontroverted acts of Alamo, these parties would not be before this Court today."
An out-of-state defendant's acts must also be such that the defendant could reasonably foresee being held accountable in the courts of the forum state. World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980). Knowing of the agreement to interplead the closing proceeds and then deliberately wiring those funds to Alabama rather than into the designated Texas court, Alamo should have been aware that P.B. Surf could well challenge its action in the venue to which the proceeds were sent. "Crucial to the analysis is the element of foreseeability of the consequences of the defendant's activities. There must be a clear, firm nexus between the acts of the defendant and the consequences complained of in order to establish the necessary contacts." Duke v. Young, 496 So.2d 37, 39 (Ala.1986). That nexus exists here.
Whether personal jurisdiction exists is a fact-specific inquiry. A defendant who engages in tortious activity within this State should not be able to claim a jurisdictional bar to avoid liability. "We cannot allow a
Because the trial court reasonably assumed jurisdiction, Alamo had no clear legal right to an order of dismissal, and the petition should be denied.
Apart from the merits of P.B. Surf's jurisdictional arguments, mandamus relief is inappropriate here because Alamo has adequate alternative remedies. "A writ of mandamus will issue only in situations where other relief is unavailable or is inadequate, and it cannot be used as a substitute for appeal." Ex parte Empire Fire & Marine Ins. Co., 720 So.2d 893, 894 (Ala. 1998).
Because the amount in controversy exceeded $50,000, Alamo had available the alternative of seeking certification from the trial court for a permissive appeal.
Because Rule 5, Ala. R.App. P., is a specific limited alternative to attacking an interlocutory order by a petition for a writ of mandamus, it should logically, when other requirements for an appeal are met,
Additionally, such an approach will promote harmony and efficiency within the judicial system. By requiring a party to initially resort to Rule 5, this Court will
Denial of Alamo's motion to dismiss does not limit its capacity to further challenge jurisdiction pretrial or during trial. "[T]he trial court's denial of the petitioners' motions to dismiss for lack of personal jurisdiction is interlocutory and preliminary only. The petitioners can continue to challenge personal jurisdiction in their answers to the complaint and by motions for a summary judgment or at trial." Ex parte United Ins. Cos., 936 So.2d 1049, 1056 (Ala.2006). Alamo thus also had the alternative remedy of continuing to litigate the personal-jurisdiction issue in the trial court. If it were successful on the merits, the issue would be moot. Otherwise, absence of personal jurisdiction could be grounds for an appeal from an adverse final judgment.
Alamo lacked a clear legal right to the relief sought and also had other alternative avenues for relief by way of an appeal. Therefore, I respectfully dissent from the Court's issuance of a writ of mandamus reversing the trial court's order.
471 U.S. at 475-76, 105 S.Ct. 2174 (footnote omitted).