Opinion ID: 1140801
Heading Depth: 1
Heading Rank: 3

Heading: Systrends' Challenge to Jurisdiction

Text: At each stage of the litigation, Systrends asserted that the trial court lacked personal jurisdiction over it. We recognize that `[t]he plaintiff bears the burden of proving the court's personal jurisdiction over the defendant.' Daynard v. Ness, Motley, Loadholt, Richardson & Poole, P.A., 290 F.3d 42, 50 (1st Cir.2002). See also Beasley v. Schuessler, 519 So.2d 551, 553 (Ala.Civ.App.1987); 5 C. Wright & A. Miller, Federal Practice and Procedure § 1351 (2d ed.1990). Ex parte Dill, Dill, Carr, Stonbraker & Hutchings, P.C., 866 So.2d 519, 525 (Ala. 2003). `A physical presence in Alabama is not a prerequisite to personal jurisdiction over a nonresident.' Sieber v. Campbell, 810 So.2d 641, 644 (Ala.2001). What is required, however, is that the defendant have such contacts with Alabama that it `should reasonably anticipate being haled into court [here].' Dillon Equities v. Palmer & Cay, Inc., 501 So.2d 459, 462 (Ala.1986) (quoting World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980)). Depending on the quality and quantity of the contacts, jurisdiction may be either general or specific. Leventhal v. Harrelson, 723 So.2d 566, 569 (Ala.1998). `General jurisdiction applies where a defendant's activities in the forum state are substantial or continuous and systematic, regardless of whether those activities gave rise to the lawsuit. . . . A court has specific jurisdiction when a defendant has had few contacts with the forum state, but those contacts gave rise to the lawsuit.' Id. But regardless of whether jurisdiction is alleged to be general or specific, the nexus between the defendant and the forum state must arise out of `an action of the defendant [that was] purposefully directed toward the forum State.' Elliott [v. Van Kleef], 830 So.2d [726,] at 731 [(Ala.2002)] (quoting Asahi Metal Indus. Co. v. Superior Court of California, 480 U.S. 102, 112, 107 S.Ct. 1026, 94 L.Ed.2d 92 (1987)). Ex parte Dill, Dill, 866 So.2d at 525-26. Systrends appeals as to this issue from the trial court's denial of its postverdict motion for a judgment as a matter of law under Rule 50 or, in the alternative, a motion for a new trial under Rule 59. This Court reviews the ruling on a postjudgment motion challenging personal jurisdiction, typically asserted under Rule 60(b)(4), to determine whether the judgment against the moving party, in this case Systrends, was void for lack of personal jurisdiction. See Insurance Mgmt. & Admin., Inc. v. Palomar Ins. Corp., 590 So.2d 209, 212 (Ala.1991)(The standard of review on appeal from the denial of relief under Rule 60(b)(4) is not whether there has been an abuse of discretion. . . . If the judgment is valid, it must stand; if it is void, it must be set aside. A judgment is void only if the court rendering it lacked jurisdiction of the subject matter or of the parties, or if it acted in a manner inconsistent with due process.); accord Ex parte C.L.C., 897 So.2d 234, 237 (Ala.2004)(quoting Neal v. Neal, 856 So.2d 766, 781 (Ala. 2002)). As noted, within a month after Brooks went to work for Systrends, the lawyer for Group 8760 wrote Systrends to advise it of the existence of the noncompetition provision in Brooks's employment agreement and to state Group 8760's opinion that Brooks's relationship with Systrends violated the terms of that noncompetition provision. In the letter, Group 8760's counsel stated his belief that [Group] 8760 may have independent rights against Systrends for tortious interference with contractual relations. At the very least, Systrends was on notice from that time that its actions could affect an existing contract, the employment agreement, between an Alabama resident and an Alabama corporation and could precipitate litigation by Group 8760; Systrends admitted as much at trial. After receiving the letter and electing to persist in using Brooks's services over the next seven months while he continued to reside in Alabama, Systrends should have reasonably anticipated that its actions could result in its being haled into court in Alabama. Dillon Equities, 501 So.2d at 462 (quoting World-Wide Volkswagen Corp., 444 U.S. at 297, 100 S.Ct. 559). It was during these seven months that Brooks served as Systrends' project manager on the ERCOT project and participated in the PEPCO bid. Those activities are key features of Group 8760's claims against Brooks and Systrends. Under these circumstances, Systrends had sufficient contacts with Alabama, contacts that gave rise to this action, to satisfy the requirements for specific personal jurisdiction. The judgment against Systrends was not void for lack of personal jurisdiction, and the trial court correctly denied Systrends' motion for a judgment as a matter of law on that basis.