Court Opinion

ID: 9658551
Source: CourtListenerOpinion
Date Created: 2023-08-23 21:04:38.161712+00
Date Added: 2024-06-11T18:13:56.647625
License: Public Domain

FORSBERG, Judge
(dissenting):
I respectfully dissent. I believe sufficient contacts can be inferred from the character of the business involved here. See Gray v. American Radiator & Standard Sanitary Corp., 22 Ill.2d 432, 441-42, 176 N.E.2d 761, 766 (1961).
The facts establish Rocky Mountain sold allegedly defective fireworks to Piedmont, a Kansas distributor, who resold the fireworks to Arrowhead for use in Minnesota. The facts further establish Rocky Mountain deploys a sales force over a ten-state area stretching from Idaho to Alabama. Finally, Rocky Mountain advertises in the Fireworks Buyers’ Guide and Trade Directory, which is published annually and marketed throughout the United States. In one of its advertisements, Rocky Mountain describes itself as a “Manufacturer/importer/distributor/wholesaler” of fireworks.
Given these facts, I believe the quantity of contacts weighs in favor of jurisdiction. Although Rocky Mountain apparently has no direct contacts with Minnesota, sufficient indirect contacts can be inferred. By purposefully advertising in a national trade directory, by manufacturing and importing fireworks, and by selling those fireworks to other distributors such as Piedmont, Rocky Mountain is indirectly seeking to serve a nationwide market. The sale of fireworks in this case thus should not be viewed simply as an isolated occurrence. While Rocky Mountain could limit sale and distribution of its products to certain states, it has made no attempt to do so. An importer, manufacturer, and distributor cannot insulate itself from a state’s jurisdiction merely because it fails to control or does not know the ultimate destination of its products. See Rostad v. On-Deck, Inc., 372 N.W.2d 717, 721 (Minn.) (quoting DeJames v. Magnificence Carriers, Inc., 654 F.2d 280, 285 (3rd Cir.), cert. denied, 454 U.S. 1085, 102 S.Ct. 642, 70 L.Ed.2d 620 (1981)), cert. denied, 474 U.S. 1006, 106 S.Ct. 528, 88 L.Ed.2d 460 (1985).
I believe the remaining factors also weigh in favor of jurisdiction. The nature of Rocky Mountain’s contacts is sales. It has profited by sale of its fireworks in Minnesota and elsewhere, even though those sales may often be accomplished through other distributors. The source of the cause of action, the selling of allegedly defective fireworks, is undisputedly related to Rocky Mountain’s contacts. As noted by the majority, the last two factors, the interest of Minnesota in providing a forum and the convenience of the parties, are in favor of jurisdiction.
Finally, I find this case distinguishable from Real Properties, Inc. v. Mission Ins. Co., 427 N.W.2d 665 (Minn.1988). As noted by Justice Simonett, there are “structural differences between a manufacturer of a product with a distribution system and * * * the provider of a service.” Id. at 669 *166n. 3. As an importer, manufacturer, and distributor, Rocky Mountain places its products in the national stream of commerce with the expectation that those products will be purchased in Minnesota and elsewhere.
For these reasons, I would affirm the denial of Rocky Mountain’s motion to dismiss for lack of personal jurisdiction.