JAMES LAWRENCE KING, District Judge.
In approximately 1989, Defendant Richard Russek ("Russek") co-founded Defendant Company Grey Flannel Auctions Inc., ("GFA") as an authenticator of game-worn sports memorabilia. Russek currently serves as President of GFA. In 1999, GFA began auctioning, brokering, and selling high-end sports memorabilia. On June 10, 2002, Plaintiff Wayne Pathman ("Pathman") visited GFA's website to view items that were scheduled to be auctioned on June 12, 2002.
Non-resident defendants may contest personal jurisdiction in Florida by filing a motion to dismiss, in which the motion challenges the jurisdictional allegations made in the Complaint, or else that the non-resident defendant lacks sufficient minimum contacts with the forum state. See Venetian Salami Co. v. Parthenais, 554 So.2d 499, 502 (Fla.1989). To contest a complaint's jurisdictional allegations, or to challenge the presence of minimum contacts, the defendant must file an affidavit. Id. If the Defendant succeeds in refuting the jurisdictional allegations, the burden then shifts to the plaintiff, who must prove by affidavit the basis upon which jurisdiction may be obtained. Id. "Where the affidavits can be harmonized, the trial court can make a decision based upon facts that are essentially undisputed. If the affidavits are in direct conflict and cannot be reconciled, then the trial court must hold a
To determine whether the exercise of personal jurisdiction in Florida over a non-resident is proper, a two-part inquiry must be made. See Horizon Aggressive Growth, L.P. v. Rothstein-Kass, P.A., 421 F.3d 1162, 1166 (11th Cir.2005). "First, we determine whether the exercise of jurisdiction is appropriate under the forum state's long-arm statute." Id. (quoting Mut. Serv. Ins. Co. v. Frit Indus., Inc., 358 F.3d 1312, 1319 (11th Cir.2004)). "Second, we examine whether the exercise of personal jurisdiction over the defendant would violate the Due Process Clause of the Fourteenth Amendment to the United States Constitution, which requires that the defendant have minimum contacts with the forum state and that the exercise of jurisdiction over the defendant does not offend `traditional notions of fair play and substantial justice.'" Horizon, 421 F.3d at 1166 (quoting Int'l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945)).
The Florida long-arm statute provides two alternative bases for the exercise of personal jurisdiction: specific and general jurisdiction. See Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414 n. 8 & 415 n. 9, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984). General jurisdiction exists "when a State exercises personal jurisdiction over a defendant in a suit not arising out of or related to the defendant's contacts with the forum...." Id. at 415 n. 9, 104 S.Ct. 1868. Specific jurisdiction exists "when a State exercises personal jurisdiction over a defendant in a suit arising out of or related to the defendant's contacts with the forum." Id. at 414 n. 8, 104 S.Ct. 1868. The Florida long-arm statute provides for both manners of personal jurisdiction. "The reach of the Florida long-arm statute is a question of Florida law. Therefore, federal courts are required to construe it as would the Florida Supreme Court." Madara v. Hall, 916 F.2d 1510, 1514 (11th Cir.1990).
In regard to determining whether the exercise of general jurisdiction is appropriate, the Florida long-arm statute provides, in relevant part, that:
Fla. Stat. § 48.193(2). "The `substantial and not isolated activity' requirement of the long-arm statute has been recognized by Florida courts as the functional equivalent of the continuous and systematic contact requirement for general jurisdiction under the Fourteenth Amendment Due Process Clause as discussed in Helicopteros Nacionales ...." Meier v. Sun Int'l Hotels, Ltd., 288 F.3d 1264, 1269 n. 6 (11th Cir.2002). In Helicopteros Nacionales, the Supreme Court of the United States held that where a foreign defendant's "contacts with Texas consisted of sending its chief executive officer to Houston for a contract-negotiation session; accepting into its New York bank account checks drawn on a Houston bank; purchasing helicopters, equipment, and training services from Bell Helicopter for substantial sums; and sending personnel to Bell's facilities in Fort Worth for training," this did not amount to continuous and systematic contact with the forum state, and as such, general jurisdiction could not be exercised over the foreign defendant. 466 U.S. at
In light of the Supreme Court's holding in Helicopteros Nacionales, Defendants' contacts with Florida do not rise to the level of "substantial and not isolated activity." See 466 U.S. at 413-16, 104 S.Ct. 1868. At most, Defendants' activity in the forum state consists of traveling to Florida on business two to three times a year, occasionally visiting the state as a tourist, phone calls, e-mail, and some mail solicitations. Neither of Defendants' connections to Florida are "so extensive to be tantamount to [a defendant] being constructively present in the state to such a degree that it would be fundamentally fair to require it to answer in [the forum state's courts] in any litigation arising out of any transaction or occurrence taking place anywhere in the world." Exhibit Icons, LLC v. XP Cos., LLC, 609 F.Supp.2d 1282, 1295 (S.D.Fla.2009) (quoting Baker v. Carnival Corp., No. 06-21527-CIV-HUCK, 2006 WL 3360418, at *2, 2006 U.S. Dist. LEXIS 85114, at *7-8 (S.D.Fla.2006)). However, that is not where the inquiry ends. The court does find jurisdiction exists under the second provision of Florida's long-arm statute.
In determining whether the exercise of specific jurisdiction is appropriate, the Florida long-arm statute provides, in relevant part, that:
Fla. Stat. § 48.193(1). An analysis of both of the relevant provisions of the long-arm statute is warranted on these facts.
"In order to establish that a defendant is `carrying on business' for the purposes of the Long-Arm statute, the activities of the defendant must be considered collectively and show a general course of business activity in the state for pecuniary benefit." Future Tech. Today, Inc. v. OSF Healthcare Sys., 218 F.3d 1247, 1249 (11th Cir.2000) (per curiam). Though none are dispositive, a number of factors are particularly relevant in such an analysis. Namely, whether the defendant operates an office in Florida; possesses and maintains a license to do business in Florida; serves clients in Florida; and, if any, the amount of revenue obtained as a result, are all useful inquiries in determining whether a defendant has conducted business in Florida for the purpose of the long-arm statute. Horizon, 421 F.3d at 1166. With the preceding
Consideration of the above-mentioned factors demonstrates that Russek has maintained business activities in Florida since 2002. Russek travels to Florida several times a year in order to sell and consign auction items. Even though he claims that he does not advertise in any Florida-specific publication, or targets no mailing, advertising or solicitations at Florida, the record reflects otherwise. Defendants argue that the catalogs that were sent to Floridians were no different than those sent to others across the country. The Court finds that whether they were specifically crafted for Florida, or not, does not alter the fact that they were sent directly to Floridians presumably for their viewing and enticement to buy Defendants' products. Moreover, Defendants own call-log show consistent calls to Florida since 2002, which although may not be sufficient to establish jurisdiction individually, taken in whole establishes a clear relationship with the State of Florida, warranting the Court's exercise of jurisdiction. Defendants have also proffered that according to their records 152 Florida registrants have bid in six (6) GFA auctions between May 2008 and April 12, 2010. In further evidence of their relationship with the state, for their most recent auction, Defendants sent 91 registrants in Florida a catalog showing items available for bidding. Defendants cite to a legion of cases purportedly holding that limited commercial activity in or with Florida does not confer specific personal jurisdiction under section 48.193(1)(a). However those cases are inapposite when compared with the level of activity that the Court has before it on these facts.
In addition to allowing the exercise of jurisdiction over a defendant who directly commits a tort while physically present in the State of Florida, section 48.193(1)(b) of the Florida long-arm statute allows the exercise of jurisdiction over a nonresident defendant who commits a tort outside of Florida that causes injury inside the state. See Whitney Info. Network, Inc. v. Xcentrix Ventures, LLC, 199 Fed.Appx. 738, 741 (11th Cir.2006). "`Committing a tortious act' in Florida under section 48.193(1)(b) can occur through the nonresident defendant's telephonic, electronic, or written communications into Florida, as long as the plaintiff's cause of action arises from the communications." Wendt v. Horowitz, 822 So.2d 1252, 1260 (Fla.2002).
In light of this legal standard, the Court finds that Plaintiff has adequately alleged sufficient material facts in its Complaint which if proven would show that Russek committed a tortious act that caused injury in the State of Florida. Taking Plaintiff's claims as true, Russek was involved in the sale of a fraudulent baseball Jersey allegedly belonging to Joe DiMaggio. Thus, the Court finds that Defendants fulfill the requirements for jurisdiction under this provision of the state's long-arm statute.
In addition to the above mentioned considerations, the facts before the Court show that Defendants also conducted significant activity over the internet, including immediate, interactive sales with Florida residents through their website. Active internet solicitation may subject a defendant to personal jurisdiction. See Kim v. Keenan, 71 F.Supp.2d 1228, 1234 (M.D.Fla.1999), citing Thompson v. Handa-Lopez,
Zippo, 952 F.Supp. at 1124. The Eleventh Circuit has not directly addressed the issue presented in Zippo, however it has relied on the sliding scale analysis provided by the Zippo Court. See Oldfield v. Pueblo De Bahia Lora, S.A., 558 F.3d 1210, 1220, n. 26 (11th Cir.2009). The court views internet activity within the sliding scale context provided by Zippo, as an aspect of purposeful availment, but not as definitive in and of itself.
The Plaintiff has referenced two website it has allegedly conducted business with. The first is www.greyflannel acutions.com and the second is www. greyflannel.com. In the Motions to Dismiss, Defendants did not raise the issue that the they were not affiliated with the second website. They only argued that they had no Florida affiliates. It is in their Joint Reply (DE # 26) and in CEO Michael Rosenbaum's Declaration that Defendants first mentioned that the two (2) websites are not a single enterprise and any business dealings or solicitations Plaintiff engaged in through the second website should not be weighed against them for the purpose of establishing jurisdiction.
Even though the Defendants may meet the requirements for jurisdiction under Florida's long-arm statute, this alone is insufficient to subject them to personal jurisdiction in Florida. The Court must now assess whether the exercise of personal jurisdiction over Defendants comports with "the Due Process Clause of the Fourteenth Amendment to the United States Constitution, which requires that the defendant have minimum contacts with the forum state and that the exercise of jurisdiction over the defendant does not offend `traditional notions of fair play and substantial justice.'" See Horizon, 421 F.3d at 1166 (quoting Int'l Shoe, 326 U.S. at 316, 66 S.Ct. 154).
Courts must examine three factors in determining whether a defendant has established sufficient minimum contacts with the forum state to comport with the Fourteenth Amendment's due process requirement: (1) whether the defendant has purposefully availed itself of the benefits of doing business in the forum state; (2) whether the cause of action arose out of the activities through which the defendant did so; and (3) whether the defendant could have reasonably anticipated being haled into court in the forum state. Future Tech. Today, 218 F.3d at 1250-51 (citing Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985)).
The Court finds that Defendants have sufficient minimum contacts with the State of Florida. With the facts in tow, it is clear to the Court that Defendants purposefully availed themselves to the benefits of doing business in Florida. Without restating all previously mentioned facts, Russek traveled to the state frequently and greatly benefitted financially as a result. Importantly, Plaintiff's cause of action arises out of these same trips and dealings. That Defendants would be subject to suit in Florida for some alleged wrongdoing was thereby reasonably foreseeable. As such, the Court concludes that he possesses sufficient minimum contacts with the forum state.
Whether exercising jurisdiction over the Defendants in Florida would comport with traditional notions of fair play and substantial justice is the last inquiry the Court must make in determining whether personal jurisdiction extends to Defendants. Int'l Shoe, 326 U.S. at 320, 66 S.Ct. 154. In so doing, the Court must consider "the burden on the defendant, the interests of the forum ..., and the plaintiff's interest in obtaining relief." Sculptchair, Inc. v. Century Arts, Ltd., 94 F.3d 623, 631 (11th Cir.1996) (quoting Asahi Metal Indus. Co. v. Superior Court of Cal., 480 U.S. 102, 113, 107 S.Ct. 1026, 94 L.Ed.2d 92 (1987)).
Russek alleges that Defendants have committed wrongs in, or directly affecting, Florida. Should Plaintiff ultimately prove his claims, it will also successfully prove that it suffered injury in Florida, since it was victim of a fraudulent sale of an expensive piece of merchandise over the internet. Florida has an interest in ensuring that tortious acts not be committed against those within its borders. See
Accordingly, it is