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Judges rule Wisconsin court had personal jurisdiction

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The Indiana Court of Appeals has determined a Johnson Superior judge should not have set aside a Wisconsin court’s default judgment involving the sale and delivery of a boat between parties in the two states.

In Harry Kaufmann Motorcars, Inc. v. Schumaker Performance, Inc., No. 41A05-1108-MI-411, the COA reversed a decision to not give full faith and credit to a default judgment finding by a Wisconsin court.

The case involves the purchase of a boat following the Indianapolis Boat, Sport and Travel Show. Wisconsin-based company HKM agreed to buy the boat from Schumaker Performance and made a $9,000 down payment. A Schumaker representative delivered the boat in April 2007 to Wisconsin and accepted the final payment. After the initial delivery, a Schumaker representative picked the boat up and conducted repairs in Indiana before later returning the boat to HKM in Wisconsin.

 In July 2009, HKM filed a suit in Dane County, Wis., against Schumaker and co-defendant Eliminator Custom Boats alleging breach of contract and warranty claims relating to the boat sale. Schumaker was served with process in Indiana, but declined to appear and later informed the court of its intent. The Wisconsin court entered default judgment against Schumaker and Eliminator Custom Boats in June 2010 for $436,651.71. HKM later filed its complaint to domesticate foreign judgment in the Johnson County trial court, and in May 2011 the Indiana judge granted Schumaker’s motion to dismiss.

Finding that this case involves local services, goods or contracts received by a company in Wisconsin, the Indiana appellate court determined that Wisconsin’s long-arm statute applies to this case. The Indiana panel relied on Capitol Fixture and Woodworking Grp. v. Woodma Distribs., Inc., 432 N.W.2d 647, 649 (Wis. Ct. App. 1988) to determine that two inquiries had been satisfied to give the Wisconsin court personal jurisdiction over a non-resident defendant. Those two factors were the initial contact between HKM and Schumaker, resulting in the purchase, and the boat delivery from Indiana to Wisconsin that included the final payment being accepted in that state.

“As an Indiana seller, Schumaker cannot be surprised that it could possibly expose itself to litigation relating to the sale of its product in a buyer’s state,” Judge Cale Bradford wrote in the opinion. “In addition, Schumaker arranged for its counsel to communicate with the Wisconsin court, and through its counsel, could likely have arranged for effective local counsel without unreasonably inconveniencing itself. Accordingly, we conclude that the balancing of inconveniences in this instance falls in favor of HKM and conferring personal jurisdiction over Schumaker in the Wisconsin courts.”

The case is remanded for further proceedings consistent with this appellate opinion.

 

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  1. What is this, the Ind Supreme Court thinking that there is a separation of powers and limited enumerated powers as delegated by a dusty old document? Such eighteen century thinking, so rare and unwanted by the elites in this modern age. Dictate to us, dictate over us, the massess are chanting! George Soros agrees. Time to change with times Ind Supreme Court, says all President Snows. Rule by executive decree is the new black.

  2. I made the same argument before a commission of the Indiana Supreme Court and then to the fedeal district and federal appellate courts. Fell flat. So very glad to read that some judges still beleive that evidentiary foundations matter.

  3. KUDOS to the Indiana Supreme Court for realizing that some bureacracies need to go to the stake. Recall what RWR said: "No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!" NOW ... what next to this rare and inspiring chopping block? Well, the Commission on Gender and Race (but not religion!?!) is way overdue. And some other Board's could be cut with a positive for State and the reputation of the Indiana judiciary.

  4. During a visit where an informant with police wears audio and video, does the video necessary have to show hand to hand transaction of money and narcotics?

  5. I will agree with that as soon as law schools stop lying to prospective students about salaries and employment opportunities in the legal profession. There is no defense to the fraudulent numbers first year salaries they post to mislead people into going to law school.

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