Opinion ID: 1266312
Heading Depth: 3
Heading Rank: 2

Heading: Things of Value

Text: N.C.G.S. § 1-75.4(5) addresses actions relating to Local Services, Goods or Contracts and authorizes jurisdiction over any action which . . . [r]elates to goods, documents of title, or other things of value shipped from this State by the plaintiff to the defendant on his order or direction. N.C.G.S. § 1-75.4(5)(d) (2005). Essentially, this section of the long-arm statute reaches defendants who engage in commercial transactions with residents of this state. See Johnston Cty. v. R.N. Rouse & Co., Inc., 331 N.C. 88, 95, 414 S.E.2d 30, 35 (1992) (describing N.C.G.S. § 1-75.4(5) as authoriz[ing] the courts of North Carolina to exercise jurisdiction over a nonresident contracting within the state or contracting to perform services within the state). In this case, the main transaction at issue, the origination of the mortgage loan, was conducted by Preferred Credit before the creation of the 1997-1 Trust. The only things shipped from this State are the loan payments, but the servicer Chase handles all aspects of these transactions. As noted previously, Chase does not act at the order or direction of the 1997-1 Trust but rather, is authorized to make its own decisions about how best to administer the loans it services, including discretion as to how to handle a default. There is no direct contact between plaintiffs and the 1997-1 Trust. Although this statutory grant of jurisdiction is far-reaching, the transactions in this case do not fall within its grasp.