SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-5936-96T3
ROCHELLE JACOBS, individually
and as guardian ad litem of her
minor daughter, HEATHER JACOBS,
Plaintiffs-Appellants,
v.
WALT DISNEY WORLD, CO.,
Defendant-Respondent.
_______________________________________________
Argued February 25, 1998 - Decided April 1, 1998
Before Judges Shebell, D'Annunzio and A.A. Rodríguez.
On appeal from the Superior Court of New Jersey,
Law Division, Mercer County.
Robert W. Rubinstein argued the cause for appellants
(Carchman, Sochor, Schwartz & Ragsdale, L.L.C.,
attorneys; Mr. Rubinstein, and Caryn M. Rubinstein,
on the brief).
Kathleen H. Dooley argued the cause for respondent
(Shanley & Fisher, P.C., attorneys; James M. Altieri
and Ms. Dooley, on the brief).
The opinion of the court was delivered by
SHEBELL, P.J.A.D.
Plaintiffs appeal from the dismissal of their negligence
complaint for lack of personal jurisdiction over defendant. We
reverse and remand for further discovery.
On February 14, 1997, plaintiff, Rochelle Jacobs,
individually and as guardian ad litem of her minor daughter,
Heather Jacobs, filed a complaint against Walt Disney World, Co.
(WDW). The complaint alleged in count one that WDW breached its
duty to maintain a certain hotel facility in Orlando, Florida in
a reasonably safe condition and that WDW negligently treated and
handled Rochelle and Heather causing them damages. The second
count alleged the negligent infliction of emotional distress upon
Rochelle in advising her that the blood on the hotel sheets was
human blood, but refusing to comment further or provide a copy of
the lab report, as promised. WDW was served with the complaint
on March 7, 1997.
On April 1, 1997, WDW filed a motion to dismiss for lack of
personal jurisdiction. Plaintiffs filed an opposition to
defendant's motion to dismiss, and on May 16, 1997, the judge
heard oral argument and entered an order dismissing plaintiffs'
complaint for lack of personal jurisdiction pursuant to Rule 4:6-2(b). On May 19, 1997, plaintiffs moved for reconsideration of
the May 16, 1997 order. Defendant opposed the motion, and on
June 13, 1997, plaintiffs' motion was denied. Plaintiffs appeal.
In support of the court's jurisdiction over defendant,
plaintiffs allege that during the years 1995 and 1996, they were
"bombarded" with advertisements to visit Walt Disney World during
its 25th Anniversary celebration. These advertisements included
free promotions of the Disney Channel which contained
advertisements for Walt Disney World, magazine advertisements,
including advertisements in the Barney Fan Club Magazine, as well
as the "standard" Disney commercials on television.
Rochelle certified that she ordered a Disney video of the
movie "Aladdin" at the Disney Store in the Quakerbridge Mall in
Mercer County, New Jersey. When she received the video, it
included a postcard advertising a 4-day, 3-night package to
Disney World. The postcard provided a toll free telephone number
for Disney's Travel Company. Rochelle called the toll free
number for information about a trip to Walt Disney World. In
response, the travel service provided the requested information
and included a videotape advertising Disney's 25th Anniversary.
After reviewing the information, the family decided to visit
Disney World. They charged the deposit to a credit card and the
charge slip referenced the payee as WDW.
Defendant demonstrated to the satisfaction of the motion
judge that WDW does not itself market or produce "Aladdin" in
theaters or on videocassette, nor does it own or operate Disney
stores. Further, Disney's Travel Company is owned by Walt Disney
Travel Co., Inc., not WDW.
On November 10, 1996, plaintiffs were on their vacation at
Walt Disney World and were staying at the Dixie Landings Resort,
owned by Lake Buena Vista Communities. During their stay,
plaintiffs received the business card of Rembert Vonk, Restaurant
Guest Services Manager of Dixie Landings Resort. The business
card indicated that Vonk was employed by WDW, and states that
Dixie Landings is "Part of the Magic of the Walt Disney World
Company."
Plaintiffs' hotel room consisted of two beds, one for
Rochelle and her husband, and the other for her daughter,
Heather. That evening, Rochelle put her daughter, Heather, to
sleep in one of the beds. Prior to going to sleep, Rochelle
checked on Heather and tried to place another pillow under
Rochelle's head. She found that the pillow that Heather was
laying on contained a "significant amount of blood." She also
discovered that the bottom sheet contained some blood.
Rochelle contacted a worker from hotel housekeeping, who,
after seeing the sheets, called the hotel manager. The
housekeeper, at the manager's direction, stripped the bed of the
sheets, and placed them in a plastic bag. Rochelle held onto the
pillow case and intended to have it tested. The following
morning, the evening manager came to the room and requested that
Rochelle turn over the pillow case. When Rochelle said that she
was keeping it to have it tested, the manager informed her that
she would be guilty of stealing "Disney" property if she kept it.
After Rochelle turned the pillow-case over, she was informed that
Disney would have it tested and she would receive a copy of the
laboratory report.
Upon returning home, Rochelle returned a message left on her
answering machine from Theresa Forrest who stated that she was
representing "Walt Disney World." Forrest said that the sheet
and pillow case had been sent to a laboratory in another State
and that once the report was received, they would contact
Rochelle.
In December 1996, Rochelle placed a call to Forrest, who
returned the call and informed Rochelle that the results showed
it was human blood on the pillow case and sheets. Forrest said
that she could not tell Rochelle anything else about the report.
Forrest refused Rochelle's request for a copy of the report.
Several days later, Rochelle again contacted Forrest, who
informed her that the matter was now in the hands of "Disney's
legal department." Rochelle certified that her conversations
with Forrest caused her great concern about the contents of the
lab report, why the case was turned over to Disney's legal
department, and whether her daughter had contracted a disease.
It appears from defendant's certification that WDW, a
Delaware Corporation, is a subsidiary of Walt Disney Company, as
is the Disney Channel and Lake Buena Vista Communities. WDW is
not qualified to do business in the State of New Jersey and has
neither incurred nor paid taxes to this State. WDW has not
appointed an agent for service of process in New Jersey and is
not listed in any New Jersey telephone directories. It has no
officers, agents or employees in New Jersey. WDW maintains no
bank accounts, owns no property, and has no assets here.
Defendant avers that WDW neither owned nor operated Disney's
Dixie Landings Resort and that WDW does not pay for the expenses
of advertising initiated and controlled by licensees who have
been granted permission to refer to the Walt Disney World Resort
in the promotion of their goods and services.
The judge held that plaintiffs did not satisfy their burden
of demonstrating contacts with the forum state sufficient to give
the Court in personam jurisdiction. The judge ruled that the
motion be denied without prejudice so that limited discovery on
the relationship of WDW and Lake Buena Vista Communities, Inc.
could be accomplished. However, counsel for plaintiffs stated
that such discovery would not establish jurisdiction, because the
issue would still remain whether either entity possessed
sufficient contacts to establish jurisdiction. Instead, he
requested discovery on the advertising efforts of defendant. The
judge denied the request and granted the motion to dismiss for
lack of personal jurisdiction.
On appeal, the judge's findings will not be disturbed unless
"they are so wholly insupportable as to result in a denial of
justice." Rova Farms Resort, Inc. v. Investors Ins. Co.,
65 N.J. 474, 484 (1974) (quoting Greenfield v. Dusseault,
60 N.J. Super. 436, 444 (App. Div. 1960), aff'd o.b.,
33 N.J. 78 (1960)). We
will not disturb "the factual findings and legal conclusions of
the trial judge unless...they are so manifestly unsupported by or
inconsistent with the competent, relevant and reasonably credible
evidence as to offend the interests of justice." Ibid. (quoting
Fagliarone v. Township of North Bergen,
78 N.J. Super. 154, 155
(App. Div. 1963)).
New Jersey's long-arm statute permits service on nonresident
defendants subject only to "due process of law." R. 4:4-4(b)(1).
Out-of-state service may be stretched to the "uttermost limits
permitted by the United States Constitution." Avdel Corp. v.
Mecure,
58 N.J. 264, 268 (1971).
There are two types of personal jurisdiction: specific and
general. Accura Zeisel Machinery Corp. v. Timco, Inc.,
305 N.J.
Super. 559, 565 (App. Div. 1997); Giangola v. Walt Disney World
Co.,
753 F. Supp. 148, 154 (D.N.J. 1990). Specific jurisdiction
is established when a defendant's acts within the forum-state
give rise to the cause of action. Accura, supra, 305 N.J. Super.
at 565; Waste Management, Inc. v. Admiral Ins. Co.,
138 N.J. 106,
119 (1994); Lebel v. Everglades Marina, Inc.,
115 N.J. 317, 322
(1989). In contrast, when the defendant's presence in the state
is unrelated to the subject matter of the lawsuit, general
jurisdiction may be obtained based on the defendants "continuous
and substantial" contacts with the forum. Accura, supra, 305
N.J. Super. at 565; Waste Management, supra, 138 N.J. at 119;
Lebel, supra, 115 N.J. at 322.
A review of the case law pertaining to specific jurisdiction
is instructive for an application of general jurisdiction
requirements. To satisfy due process, specific jurisdiction can
be asserted by the forum state only if the defendant has "minimal
contacts" with the forum. Hanson v. Denckla,
357 U.S. 235, 251,
78 S.Ct. 1228, 1238,
2 L.Ed.2d 1283, 1296 (1958); International
Shoe v. Washington,
326 U.S. 310,
66 S.Ct. 154,
90 L.Ed. 95
(1945); Waste Management, supra, 138 N.J. at 119-20; Lebel,
supra, 115 N.J. at 322. Under a specific jurisdiction analysis,
the minimum contacts inquiry must focus on "the relationship
among the defendant, the forum, and the litigation." Shaffer v.
Heitner,
433 U.S. 186, 204,
97 S.Ct. 2569, 2579,
53 L.Ed.2d 683,
698 (1977). The minimal contacts that are sufficient to
establish specific jurisdiction consist of "purposeful acts by
that party, directed toward a state, which make it reasonable for
the defendant to anticipate being haled into court there."
Giangola, supra, 753 F. Supp. at 148 (D.N.J. 1990) (citing Wide
World Volkswagen Corp. v. Woodson,
444 U.S. 286, 297,
100 S.Ct. 559, 567,
62 L.Ed.2d 490 (1980)). Unilateral actions of "those
who claim some relationship with a non-resident defendant cannot
satisfy the requirement of contact with the forum State."
Hanson, supra, 357 U.S. at 253, 78 S.Ct. at 1239-40, 2 L.Ed.
2d at
1298. Thus, the defendant must have purposely availed itself "of
the privilege of conducting activities within the forum State,
thus invoking the benefits and protections of its laws." Ibid.
These requirements ensure that a defendant has a "fair warning
that a particular activity may subject him to the jurisdiction of
a foreign sovereign." Burger King Corp. v. Rudzewicz,
471 U.S. 462, 472,
105 S.Ct. 2174, 2182,
85 L.Ed.2d 528, 540 (1985)
(quoting Shaffer v. Heitner,
433 U.S. 186, 218,
97 S.Ct. 2569,
2587,
53 L.Ed.2d 683, 706 (1977) (Stevens, J. concurring)).
"The plaintiff seeking to overcome the challenge to general
jurisdiction must show substantially more than mere minimum
contacts to establish this form of personal jurisdiction."
Giangola, supra, 753 F. Supp. at 154. Requiring that the non-resident's contacts be continuous and substantial "ensures the
fairness of treating a non-resident identically to a resident in
terms of amenability to suit in the jurisdiction." Ibid.
When a defendant asserts lack of personal jurisdiction, "the
plaintiff bears the burden of demonstrating that the defendant's
contacts with the forum state are sufficient to confer personal
jurisdiction on the court." Ibid. The plaintiff must establish
defendant's contacts with the jurisdiction through the use of
"sworn affidavits, certifications, or testimony." Catalano v.
Lease & Rental Management Corp.,
252 N.J. Super. 545, 547-48 (Law
Div. 1991) (citing Stranahan Gear Co. v. N.L. Indus., Inc.,
800 F.2d 53 (3d. Cir. 1986); Nelson by Carson v. Park Indus. Inc.,
717 F.2d 1120 (7th Cir. 1983), cert. denied,
465 U.S. 1024,
104 S.Ct. 1277,
79 L.Ed.2d 682 (1984); American Telephone & Telegraph
Co. v. MCI Communications Corp.,
736 F. Supp. 1294 (D.N.J.
1990)). In the early stages of a proceeding "where the factual
record consists of only pleadings and affidavits, plaintiff's
burden is satisfied by establishing a prima facie case of
jurisdiction." Cresswell v. Walt Disney Prod.,
677 F. Supp. 284,
286 (M.D. Pa. 1987).
Affidavits in support of motions must be limited to the
affiant's personal knowledge as to facts which the affidavit is
competent to testify to and are admissible in evidence.
Pressler, Current N.J. Court Rules, Comment to R. 1:6-6 (1998).
The requirements of the rule are also not met "by affidavits
containing argument, other forms of hearsay and general factual
or legal conclusions." Ibid.
Rule 1:6-6 provides:
If a motion is based on facts not appearing
of record or not judicially noticeable, the
court may hear it on affidavits made on
personal knowledge, setting forth only facts
which are admissible in evidence to which the
affiant is competent to testify and which may
have annexed thereto certified copies of all
papers or parts thereof referred to therein.
The court may direct the affiant to submit to
cross-examination, or hear the matter wholly
or partly on oral testimony or depositions.
Because Rule 1:6-6 mandates that certifications be based on
personal knowledge, factual assertions based merely upon
"information and belief" are patently inadequate. See
Patrolman's Benevolent Ass'n v. Montclair,
70 N.J. 130, 133-34
(1976).
Plaintiffs urge that WDW has sufficient minimum contacts
with New Jersey, directly or through affiliated entities, based
on advertising and solicitation in New Jersey, to be subject to
jurisdiction. Specifically, plaintiffs assert that WDW had
continuous and substantial contacts with New Jersey warranting
the assertion of general jurisdiction. Plaintiff argues that
Disney itself or through its affiliated companies:
1) advertises on New Jersey television and in
New Jersey newspapers;
2) sells Walt Disney products and services in
New Jersey;
3) broadcasts the Disney Channel in New
Jersey; and
4) provides a toll free number for New Jersey
residents to call to arrange a trip to
Disney.
Defendant first challenges assertions made in plaintiffs supporting certifications that WDW is the owner or parent company of affiliated companies, including the Disney Store, the Disney Channel, the Disney Travel Company, and Dixie Landings Resorts.
Lena D. Hart, a secretary in plaintiffs' counsel's firm,
certified that she spoke with managers of various Disney Stores
who advised her that the Disney Store is owned directly by WDW.
She also spoke with June Moriarty at WDW "Corporate Headquarters"
who advised her that the Disney Store and the Disney Channel are
subsidiaries of WDW. Finally, she certified that she spoke with
a manager of Dixie Landings Resort and was advised that it was
owned directly by WDW. This certification obviously relies
substantially on hearsay and is disputed by defense
certifications.
The record will not support a finding that the subsidiaries
of Walt Disney Company that gave WDW publicity and solicited
business for WDW are anything but completely independent of WDW.
As a result, the publicity given by one subsidiary to the other
is insufficient to establish jurisdiction. Pfundstein v. Omnicom
Group Inc.,
285 N.J. Super. 245, 254 (App. Div. 1995) (holding
that jurisdiction could not be asserted over the parent merely
because the subsidiary had placed advertisements for the parents
products in New Jersey).
Nonetheless, even if affiliated entities maintain the
formalities of corporate separateness, the nature of the
relationship between entities and the extent of affiliates
activities within the forum are considerations bearing on the
reasonableness of subjecting the foreign corporate defendant to
jurisdiction. Brunswick Corp. v. Suzuki Motor Co.,
575 F. Supp. 1412, 1421 (E.D. Wis. 1983). The economic realities of the
situation are to be considered. Id. at 1422.
Plaintiffs allege through certifications that WDW maintains
substantial contacts with New Jersey through its affiliates. She
certified that her family saw advertisements for WDW on the
Disney Channel. Additionally, Rochelle certified that she
purchased the Disney video, Aladdin, from the Disney Store in
the Quakerbridge Mall in Mercer County. The Aladdin video
included a postcard advertising a four-day, three-night package
to Walt Disney World and provided a toll free telephone number
for Disneys Travel Company, which she called and received a
videotape advertising Walt Disney Worlds 25th anniversary.
In addition to these contacts, plaintiffs counsel, Robert
W. Rubinstein, also certified that an advertisement was posted on
the bulletin board of the Essex County Court House soliciting
employees and visitors to the courthouse to travel to Walt Disney
World to celebrate the 25th Anniversary. A copy of this
advertisement was not included in the record, and Carol S.
Pacula, Assistant Secretary of WDW, certified that WDW did not
and does not advertise or promote a vacation package in the Essex
County Courthouse.
Rubinstein also certified that he visited the Disney Store
in question and was handed an application for a Disney Credit
Card commemorating the 25th Anniversary of Walt Disney World. He
was also handed a pamphlet soliciting him to take a trip to Walt
Disney World. Pacula certified that Rubinstein did not obtain
the credit card application from WDW and that the application was
not designed, printed or distributed by WDW. Pacula also
certified that WDW does not issue the credit card or the
membership applications.
Finally, Joseph R. Dougherty, an associate at plaintiffs
counsels law firm, certifies that he recollects watching the
Miss America pageant over the past two years and that the
contestants were filmed in Walt Disney World, the Magic Kingdom
and Disneys Epcot Center. His certification concludes that such
footage acted as a nationally televised promotion for WDW. The
videotape of this promotion was not produced in the record.
Even though WDW does not own and is a separate corporate
entity from Disney Companys other subsidiaries, there is
sufficient indication from plaintiffs certifications that the
promotion of WDWs business is so closely related to its fellow
subsidiaries to warrant further inquiry through the use of a Rule
1:6-6 hearing. As plaintiffs certifications indicate, the
related subsidiaries regularly advertise and solicit business for
WDW. The Disney subsidiaries, such as the Disney Store, have a
continuing presence in New Jersey, and WDW undoubtedly benefits
in the promotion of its own enterprise from such presence. The
true economic reality may well be that WDW, through its fellow
subsidiaries, maintains substantial contacts with New Jersey.
Additional discovery may establish by competent evidence the
mechanics of the arrangement, the methods employed to insure that
the New Jersey stores offer products and promotions that directly
solicit business for the WDW enterprise, and the extent of WDW's
financial benefits from the actions of its affiliates in New
Jersey. Clearly, this avenue warrants further exploration, as it
appears that WDW has substantial contacts with New Jersey through
its fellow subsidiaries and derives financial benefit in that
way. We expect that discovery may establish the actual methods
used by the related subsidiaries of the Walt Disney parent
corporation to further the enterprises of WDW, its sister
subsidiary.
Regarding the contacts WDW has with New Jersey through
national advertisements, several federal and state cases have
addressed the issue of whether jurisdiction can be asserted over
WDW on the basis of such advertising.
Plaintiffs rely upon Makopoulos v. Walt Disney World, Inc.,
221 N.J. Super. 513 (App. Div. 1987), for the proposition that
advertisements which are directed at a particular geographic area
can be used to establish jurisdiction. In Makopoulos, WDW's
advertising in the tri-state area of New York, New Jersey and
Connecticut was not directed specifically to residents of New
Jersey. Id. at 516. Nevertheless, the court noted:
By its interstate advertising, defendant may
be successfully enticing people to visit its
Florida resort. That some harms would follow
and would result in claims in their home
states, sites to which the advertising was
intended to reach, was not only to be
anticipated, it was predictable.
Today's jurisdiction is necessarily a
function of today's technology and economic
practice. Just as modern distribution
systems have led to expansion of product
liability jurisdiction, so too the national
media campaigns may well result in the
expansion of personal jurisdiction over those
who negligently perform services. It would
seem that by its national campaign, defendant
sought guests from New Jersey, it enticed
them in New Jersey and, when it was
effective, set the desired relationship in
motion in New Jersey. Such acts may
therefore be sufficient to permit
jurisdiction. When the operator of a resort
seeks to expand the market for its services
to other states, it is not unreasonable to
subject it to suit in one of those states
when that service becomes the source of
injury to the consumer.
Thus it may well be that advertising,
and particularly television advertising, can
create sufficient contacts to justify in
personam jurisdiction.
[221 N.J. Super. at 517-18 (citations
omitted).]
However, the court did not resolve the issue but instead,
remanded the case for further discovery to determine the extent
and nature of the solicitation and its success in drawing New
Jersey residents to the Florida complex. Id. at 518. Thus, the
court raised the possibility that national advertising, although
directed towards a broader market, if effective in drawing New
Jersey residents, could be sufficient to establish jurisdiction.
Ibid.
Plaintiffs also rely upon Cresswell v. Walt Disney
Productions,
677 F. Supp. 284 (M.D. Pa. 1987), in which
jurisdiction was found in Pennsylvania over Walt Disney
Productions. Defendants had conducted various activities in
Pennsylvania including:
advertising on Pennsylvania television
stations and in Pennsylvania newspapers;
sending representatives to Philadelphia to
encourage Pennsylvania citizens to visit Walt
Disney World; conveying Honorary Disney World
Citizenship on the Mayor of Philadelphia;
selling Walt Disney Company products and
services in Pennsylvania; broadcasting the
Walt Disney Channel in Pennsylvania;
providing a toll-free telephone number for
Pennsylvania residents to call; and regularly
visiting Keystone Junior College to recruit
employees.
[677 F. Supp. at 285.]
The court held that defendant's continuous and substantial
business activity in Pennsylvania was sufficient to support
jurisdiction. Id. at 288. While Cresswell considered national
advertising to be one factor in establishing jurisdiction, it did
not resolve the issue of whether it could be the sole factor.
See also Accura, supra, 305 N.J. Super. at 569 (holding that a
national advertising campaign was one of several factors which
supported the assertion of jurisdiction over defendant).
In contrast, defendant cites several cases that resolved the
issue in WDWs favor. In Serbin v. Walt Disney World,
159 N.J.
Super. 88 (App. Div. 1978), certif. denied,
78 N.J. 337 (1978),
plaintiffs alleged that they were illegally detained at Walt
Disney World for allegedly passing a counterfeit $20 bill. Id.
at 90. The court held that WDW did not possess minimum contacts
with the State of New Jersey. Id. at 93. The court noted that
WDW did not pay commission to a travel agency, was not qualified
to do business in New Jersey, did not pay or incur liability for
New Jersey taxes, did not have an agent for service of process,
did not place local advertisements, did not have any New Jersey
telephone listings, did not have any assets, an office or place
of business in New Jersey, and did not employ anyone in New
Jersey. Id. at 91.
The court in Giangola, supra,
753 F. Supp. 148 (D.N.J.
1990), addressed the issue of whether advertising can constitute
minimum contacts sufficient to satisfy the requirements of due
process. Plaintiff was injured while attending EPCOT Center, a
facility owned and operated by defendant, WDW. Id. at 150.
Plaintiff attempted to establish jurisdiction by relying on
newspaper and television advertisements. Id. at 155. The court
rejected national advertisements as the sole basis for
jurisdiction, since such advertising was intended to merely
spread knowledge about defendant's facilities among the general
public. Id. at 156. The court continued:
The facts in this case do not show any legal
benefit or protection accruing from
defendant's advertising campaign. In an age
of modern advertising and national media
publications and markets, plaintiffs'
argument that such conduct would make a
defendant amenable to suit wherever the
advertisements were aired would substantially
undermine the law of personal jurisdiction.
Courts generally have refused to adopt such a
standard and embark on such a course.
[753 F. Supp. at 156.]
The Giangola court recognized that in Makopoulous we had reached
a different conclusion, but it rejected our view as not being in
accord with United States Supreme Court precedents. Id. at 156.
Defendant also cites several unpublished Law Division opinions
that refused to grant jurisdiction over WDW on the basis of
national advertisements.
In any event, the record is unclear as to how extensive
WDWs advertising was for Walt Disney Worlds 25th Anniversary
celebration and to what extent the New Jersey area was targeted.
As in Makopoulous, while the advertisements plaintiffs refer to
were designed to attract people in general to Walt Disney World,
the record does not reveal whether those advertisements were
national in scope or were directed toward the tri-state market or
New Jersey residents in particular. The District Court in
Giangola cautioned that national media campaigns that inform the
general public about a recreational facility should not form the
basis for jurisdiction. Giangola, supra, 753 F. Supp. at 156.
Media campaigns designed to solicit people from a specific
geographic area, such that WDW can anticipate being summoned into
the courts of that area, in our view may form the basis for
jurisdiction. Makopoulos, supra, 221 N.J. Super. at 518. Our
remand for jurisdictional discovery may include this subject.
Plaintiffs also argue that specific jurisdiction has been
established over WDW based upon Rochelles telephone conversation
with Theresa Forrest. The phone call is the source of Rochelles
claim for negligent infliction of emotional distress. According
to plaintiffs argument, Forrest committed a tort in New Jersey,
which can form the basis of jurisdiction.
Personal jurisdiction may be asserted over a nonresident
defendant who commits a tortious act in New Jersey. Knight v.
San Jacinto Club, Inc.,
96 N.J. Super. 81, 90 (Law. Div. 1967).
[D]ue process is satisfied when a forum asserts jurisdiction
over a defendant who undertakes affirmative acts which the
defendant should reasonably foresee would lead to economic
damages within the forum. Covenant Bank for Savings v. Cohen,
806 F. Supp. 52, 56 (D.N.J. 1984) (citing Calder v. Jones,
465 U.S. 783,
104 S.Ct. 1482,
79 L.Ed.2d 804 (1984)). Jurisdiction
may be asserted regardless of whether the tortious act is
negligent or intentional. Knight, supra, 96 N.J. Super. at 90.
However, the act or, in this case the communication, must
represent a deliberate and purposeful contact with New Jersey.
Covenant, supra, 806 F. Supp. at 56. Thus, a communication by a
defendant that is solicited or initiated by a plaintiff cannot
form the basis for jurisdiction. Ibid.
Arguably, it is reasonably foreseeable that informing a
parent that her child slept in human blood but refusing to notify
the parent whether the blood was contaminated would result in the
infliction of emotional distress and cause an injury in the
forum. However, defendant argues that Rochelle initiated the
phone call, and as a result, jurisdiction cannot be established
based on her unilateral actions. See Hanson, supra, 357 U.S. at
253, 78 S.Ct. at 1239-40, 2 L.Ed.
2d at 1298; Covenant, supra, 806
F. Supp. at 56. In effect, defendant is arguing that Forrests
communication was solicited by Rochelle, and as a result, the
phone call was not aimed at the forum but merely at a plaintiff
who is located in the forum. See Narco Avionics, Inc. v.
Sportsmans Market, Inc.
792 F. Supp. 398, 408 (E.D. Pa. 1992).
In contrast to defendants view of events, the record could
support a finding that Rochelle did not initiate the
communications that led to the allegedly tortious phone call. It
is alleged that the evening hotel manager told Rochelle that a
copy of the laboratory report would be sent to her. Upon
returning to New Jersey, Rochelle received what may be found to
be an unsolicited phone call from Forrest, who represented that
she was from Walt Disney World, that the sheets and pillow case
were sent to a laboratory, and that once the results were
received, they would contact Rochelle. Only when Rochelle did
not receive the laboratory report as promised did she contact
Forrest.
If Forrest purposely directed her conduct toward New Jersey
by initiating the communications with Rochelle that led to the
allegedly tortious phone call, the phone contacts may form the
basis for specific jurisdiction. Our remand for jurisdictional
discovery may include the subject of whether Forrest was truly a
representative of defendant and the circumstances surrounding the
phone calls.
If the trial court finds specific jurisdiction, such
jurisdiction may apply only to the negligent infliction of
emotional distress count. Far West Capital, Inc. v. Towne,
828 F. Supp. 909 (D. Utah 1993) (noting that where defendant has only
minimum contacts with the forum, personal jurisdiction may be
asserted only on claims arising out of the defendants' forum-state authority); see also Helicopteros Nacionales de Colombia,
S.A. v. Hall,
466 U.S. 408, 418,
104 S.Ct. 1868, 1874,
80 L.Ed 2d
404 (1984) (holding that mere purchases are not sufficient to
support assertion of in personam jurisdiction over a non-resident
corporation in an action not related to those purchases).
We reverse the dismissal of plaintiffs complaint and remand
for discovery in accordance with the within opinion.