Opinion ID: 496994
Heading Depth: 2
Heading Rank: 3

Heading: Gastroenterology

Text: 36 The mere fact that Wardlaw, the sole member of his Tennessee professional corporation, Gastroenterology, was personally present in Mississippi when served with process, would not necessarily mean that Gastroenterology itself was so present. The law of Mississippi is clear that a corporation is a creature of law, with a legal identity separate and distinct from that of its owners. In re Grand Jury Proceedings (Doe), 814 F.2d 190, 192 (5th Cir.1987). Simply because a state acquires jurisdiction over all the stockholders, officers or directors of a corporation does not necessarily mean that the corporation is amenable to the state's jurisdiction. See Restatement (Second) Conflict of Laws Sec. 42 comments d & e (1971). See also R. Weintraub, Commentary on the Conflict of Laws Sec. 4.9 at 146, Sec. 4.21 at 192 (3d ed. 1986). Indeed, it may be questionable whether transient jurisdiction, as commonly understood with respect to individuals, of itself constitutes a discrete basis for jurisdiction over corporations. See Weintraub, supra; Restatement, supra, Secs. 42-52. We need not decide that issue, however, as section 79-1-27, discussed earlier, provides a Mississippi state law basis of obtaining jurisdiction over Gastroenterology. 37 We have found no cases interpreting section 79-1-27 in this context, but its literal terms apply because, quite simply, Gastroenterology was found doing business in Mississippi. Gastroenterology is the mirror image of Wardlaw. He is the only member of this professional corporation. Gastroenterology does not conduct business unless Wardlaw does, and when he treats a patient, the corporation by that fact alone is conducting business to precisely the same extent. When Wardlaw was served in Mississippi, he was there to treat and diagnose patients. For these reasons, we hold that Gastroenterology was in Mississippi doing business the day it was served through Wardlaw. This satisfies the requirements of section 79-1-27. We emphasize that Wardlaw was the only member of this corporation and that service was effected on Wardlaw as Gastroenterology's agent while he was directly engaged in the corporation's business. 38 Gastroenterology correctly points out that it did not begin doing business in Mississippi until well after Rittenhouse sustained her injuries. This is not, however, a relevant consideration under section 79-1-27, which does not distinguish between corporations doing business in Mississippi at the time the cause of action arose and corporations doing business only at the time of suit. Having found a state law basis for reaching Gastroenterology, we must decide whether the federal constitution prohibits the exercise of that jurisdiction. 39 When, as in this case, the cause of action does not rise out of a nonresident defendant's contacts with the forum state, those contacts must be systematic and continuous, so as to afford what is commonly called general jurisdiction. Helicopteros, 466 U.S. 408, 104 S.Ct. at 1872-73, 80 L.Ed.2d 404 (1984); Perkins v. Benguet Consolidated Mining Co., 342 U.S. 437, 72 S.Ct. 413, 96 L.Ed. 485 (1952); Petroleum Helicopters, Inc. v. Avco Corp., 804 F.2d 1367, 1369-70 (5th Cir.1986); see International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 159, 90 L.Ed. 95 (1945) (citing cases in which the continuous corporate operations within a state were thought so substantial and of such a nature as to justify suit against it on causes of action entirely distinct from those activities). This is a greater level of activity than required for specific jurisdiction, which is appropriate when there is a sufficient nexus between the nonresident defendant's contacts and the action. E.g., Petroleum Helicopters, 804 F.2d at 1370. 40 Gastroenterology's Mississippi contacts were sufficient to justify an exercise of general jurisdiction. Starting in 1984, Gastroenterology conducted its affairs in Mississippi every fifth business day. This conduct was calculated rather than fortuitous and regular and continuous rather than sporadic or isolated. Moreover, the business conducted in Mississippi was not only essentially local in character but was performed there through the nerve center, heart, and soul of the corporation, namely, Dr. Wardlaw (who was then licensed to practice in Mississippi), and necessarily amounted, at those times, to almost all the business then being done by the corporation. See Perkins. That distinguishes this case from our recent decisions in Petroleum Helicopters, supra, and Bearry v. Beech Aircraft Corp., 818 F.2d 370 (5th Cir.1987). We conclude that Gastroenterology had adequate Mississippi contacts, of a sufficiently systematic and continuous nature, to meet that requirement for Mississippi's exercise of general jurisdiction over it. See Holt Oil & Gas Corp. v. Harvey, 801 F.2d 773, 779 (5th Cir.1986), cert. denied, --- U.S. ----, 107 S.Ct. 1892, 95 L.Ed.2d 499 (1987). 41 Beyond minimum contacts, however, we must also determine whether the exercise of general jurisdiction in this case would be fair and reasonable, considering the burden on the defendant, the interests of the forum state, the interests of the plaintiff in obtaining relief, and the intents of the several states. Bearry, 818 F.2d at 377. The interests of the plaintiff, a Mississippi resident both when injured and when suit was filed, and of the forum state, Mississippi, whose citizen was injured and seeks recovery, tend to support the fairness and reasonableness of Mississippi's exercising jurisdiction in this instance. Harvey, 801 F.2d at 780; Thompson v. Chrysler Motors Corp., 755 F.2d 1162, 1173 (5th Cir.1985). Also, the interests of the forum are somewhat enhanced, and the burden on the defendant is somewhat mitigated, by the fact that the defendant's present business in Mississippi is of the same kind as that out of which this suit arose. This factor likewise serves to at least slightly mitigate any invasion of Tennessee's interest which Mississippi's exercise of jurisdiction might entail. The burden on the defendant is likewise mitigated by the factor of geographical proximity. We hold that considerations of fairness and reasonableness do not preclude Mississippi's exercise of general jurisdiction over Gastroenterology in this case. Indeed, in these circumstances, it would be a jarring incongruity to hold that due process and federalism concerns permit jurisdiction over Wardlaw, as we have, but prohibit jurisdiction over his mirror image--Gastroenterology.