Opinion ID: 479431
Heading Depth: 4
Heading Rank: 1

Heading: the transaction of any business within this state....

Text: 14 Commonwealth Edison argues that the district court incorrectly found that Mont.R.Civ.Pro. 4B(1)(a) applied. It contends that its activities within Montana are too limited to qualify as the transaction of any business within Montana. 15 The Montana cases interpreting 4B(1)(a) do not offer precise guidelines for the statute's interpretation. They do, however, suggest a rather generous approach in defining its reach. The cases Parker Brothers Farms, Inc. v. Burgess, 197 Mont. 293, 642 P.2d 1063 (Mont.1982), and Prentice Lumber Co. v. Spahn, 156 Mont. 68, 474 P.2d 141 (Mont.1970) are instructive. In Parker Brothers Farms, an Idaho defendant initiated telephone conversations with a Montana potato seller and together they negotiated a sale and distribution agreement. Shipments were sent and accepted. A disagreement as to whether a later shipment was sold to the defendant or merely consigned led to an action against the Idaho defendant in Montana court. On appeal, the Montana Supreme Court affirmed the lower court's assertion of jurisdiction over the nonresident defendant, stating it requires no discussion to conclude that the defendant transacted business within this state. 197 Mont. 293, 642 P.2d at 1065. In Prentice Lumber, a Montana lumber seller sued a Wisconsin buyer. In sixteen transactions between the two parties, only one was a direct order placed with the Montana seller. All other transactions were made through a sales representative working in Wisconsin on behalf of the Montana seller. The buyer paid the Montana seller directly until the Wisconsin sales representative instructed the buyer to make payments to him. The Montana Supreme Court held that the Wisconsin buyer transacted business within the state and was therefore properly within the reach of the long-arm statute. The court supported its conclusion by noting a prevailing trend toward expanding the permissible scope of state jurisdiction over the person of nonresident defendants, and by noting that the assertion of jurisdiction complied with federal due process. 156 Mont. 68, 474 P.2d at 145. 16 Under the contract, the coal is shipped F.O.B. the Montana mine. Commonwealth Edison had accepted delivery of Decker's coal in Montana for five years prior to Edison's invocation of the force majeure provisions of the purchase agreement. The finding that Edison transacted business within the state and the assertion of jurisdiction under Mont.R.Civ.Pro. 4B(1)(a) comports with the Montana Supreme Court's reading of the long-arm statute.