RUSHING, P. J. —
Appellants are Paul W. Moncrief (Moncrief) et al., a California attorney and his firm, and respondents are A. James Clark (Clark) et al., an Arizona attorney and his firm.
Moncrief was sued for legal malpractice arising from a failed purchase of farm equipment. In response, Moncrief cross-claimed against Clark, the attorney who represented the farm equipment company, for misrepresentations he made in connection with the purchase.
Moncrief is appealing the trial court's grant of Clark's motion to quash service of summons and complaint for lack of personal jurisdiction.
Andrew Smith Company (Smith) is a California general partnership. In January 2010, Smith hired Moncrief to perform due diligence in connection with Smith's purchase of farm equipment from Texas Hill Farms, located in Yuma, Arizona. Texas Hill Farms was represented by Clark, an Arizona attorney.
As part of his due diligence, Moncrief performed a Uniform Commercial Code search regarding Texas Hill Farms's ownership of the equipment that
On January 27, 2010, Smith informed Texas Hill Farms that it was ready to finalize the sale but was "waiting [for Moncrief] to receive a call from [Clark] to confirm various title and ownership issues."
Clark called Moncrief in response to the earlier voicemail Moncrief had left for Clark and at the request of his client, Texas Hill Farms. During the phone call between Clark and Moncrief, Clark represented that Texas Hill Farms was the sole owner of the farm equipment that was the subject of the sale.
Following the telephone conversation between Moncrief and Clark, Clark sent Moncrief an e-mail that stated in part: "I have been the attorney for Texas Hill Farms ... and can state unequivocally that the cooling equipment you are buying is free and clear and is owned by Texas Hill Farms, a partnership."
Based on Clark's representations during the phone conversation with Moncrief, and Clark's e-mail, Moncrief advised Smith to go forward with the equipment purchase from Texas Hill Farms.
In 2011, Smith learned that Texas Hill Farms did not own the equipment when they completed the sale transaction. In actuality, New York Community Bank had acquired an interest in the equipment.
As a result of the failed farm equipment purchase, Smith sued Moncrief for legal malpractice. Moncrief cross-complained against Clark for equitable indemnity, negligence, intentional misrepresentation, negligent misrepresentation, and concealment. Moncrief alleged that Clark's representation about the ownership of the farm equipment was false, and was made to induce Moncrief's client to purchase the equipment.
Clark filed a motion to quash service of summons in response to Moncrief's cross-complaint, arguing that California lacked personal jurisdiction over him. The court granted the motion, stating "Clark did not purposefully avail himself to Forum benefits. He did not reach out to Moncrief.... There's no evidence that he targeted Moncrief or California or anything. So whether Moncrief ... is based in California or anywhere else, it had no bearing on the information he sought from Clark. It seems just such a random attenuated and insufficient contact to establish specific jurisdiction."
Moncrief asserts the trial court erred in granting Clark's motion to quash service of summons, because Clark personally directed activities toward California, Moncrief's claims arise out of Clark's contacts with California, and it would be fair and reasonable for California to exercise personal jurisdiction over Clark.
"On a motion to quash for lack of personal jurisdiction, the plaintiff bears the burden of establishing by a preponderance of the evidence that the defendant has such `"minimum contacts"' with the forum state that being subjected to its jurisdiction will not offend traditional notions of fair play. [Citation.]" (Epic Communications, Inc. v. Richwave Technology, Inc. (2009) 179 Cal.App.4th 314, 326 [101 Cal.Rptr.3d 572] (Epic Communications).) "To the extent this question turns on issues of fact, it is entrusted to the trial court, whose resolution of those issues will not be disturbed if supported by substantial evidence." (Ibid., citing Vons Companies, Inc. v. Seabest Foods, Inc. (1996) 14 Cal.4th 434, 449 [58 Cal.Rptr.2d 899, 926 P.2d 1085] (Vons).) "Insofar as the question presents issues of law, such as the jurisdictional sufficiency of the contacts impliedly or necessarily found by the trial court, it will be subject to independent review on appeal. [Citations.]" (Epic Communications, at p. 326, citing Vons, at p. 449.)
"Under the minimum contacts test, `an essential criterion in all cases is whether the "quality and nature" of the defendant's activity is such that it is "reasonable" and "fair" to require him to conduct his defense in that State.'" (Pavlovich v. Superior Court (2002) 29 Cal.4th 262, 268 [127 Cal.Rptr.2d 329, 58 P.3d 2] (Pavlovich), quoting Internat. Shoe Co. v. Washington, supra, 326 U.S. at pp. 316-317, 319.)
Citing Hall v. LaRonde (1997) 56 Cal.App.4th 1342 [66 Cal.Rptr.2d 399], Moncrief asserts that Clark purposefully availed himself of the benefits of California when he communicated via telephone and e-mail with Moncrief for the purpose of facilitating the farm equipment sale for his Arizona client. Specifically, Moncrief points to the fact that Clark called Moncrief to assure him that Clark's client, Texas Hill Farms, owned the equipment that was the subject of the sale. In addition, following the phone conversation, Clark sent an e-mail to Moncrief with written assurances of the ownership with the intent of facilitating the sale between Moncrief's client and Clark's client. Moncrief argues that Clark's contacts with California were for the specific purpose of inducing the completion of the equipment sale. As such, Clark purposefully availed himself of the benefits of the forum to support California's exercise of personal jurisdiction over Clark.
Clark argues that because he only engaged in a single, fortuitous transaction with Moncrief, he did not personally avail himself of the benefits of
The facts of this case are distinguishable from those in Shisler. Here, while Moncrief and Clark engaged in a single transaction, Clark targeted Moncrief with the specific purpose of inducing Moncrief's client to finalize the purchase of farm equipment from Texas Hill Farms. Clark's contacts with California are not akin to maintaining a passive Web site available to California residents as the defendant did in Shisler.
We find that Moncrief has established that Clark purposely availed himself of the benefits of California such that California can exercise personal jurisdiction over Clark. Clark's representations were made with the sole purpose of facilitating the sale between Moncrief's California client and Clark's Arizona client. Clark's communications with Moncrief were purposely and voluntarily directed toward California "`so that he should expect, by virtue of the benefit he receive[d], to be subject to the court's jurisdiction based on' his contacts with the forum. [Citation.]" (Pavlovich, supra, 29 Cal.4th at p. 269.)
The California Supreme Court has clarified that under the substantial connection test, "`the intensity of forum contacts and the connection of the claim to those contacts are inversely related.' [Citation.] `[T]he more wide ranging the defendant's forum contacts, the more readily is shown a connection between the forum contacts and the claim.' [Citation.] Thus, `[a] claim need not arise directly from the defendant's forum contacts in order to be
The substantial connection test is satisfied in this case because the "`"`"operative facts of the controversy"'"'" (Snowney, supra, 35 Cal.4th at p. 1068) are whether Clark misrepresented information about the farm equipment when he spoke to Moncrief. Moncrief's claims in his cross-complaint against Clark arise from Clark's contacts with California. Accordingly, we find that the "`substantial connection' test" is satisfied because "`there is a substantial nexus or connection'" between Clark's forum-related activities and Moncreif's claims in his cross-complaint. (Ibid.)
The order is reversed.
Elia, J., and Márquez, J., concurred.