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Kluin v. American Suzuki Motor Corporation11/1/2002
n failed to argue jurisdiction under 40-218, and the Three Ten court did not address service under 40-218. See Novak v. Mutual of Omaha Ins. Co. 29 Kan. App. 2d 526, 530, 28 P.3d 1033, rev. denied 272 Kan. ___ (2001).
For jurisdiction to exist under subsection (b)(1) of 60-308, there must be a nexus between the transaction of business and the alleged claim. The nexus requirement has been endorsed by our previous cases. Land Manufacturing, Inc. v. Highland Park State Bank, 205 Kan. 526, 470 P.2d 782 (1970), reviewed a K.S.A. 60-308(b)(1) long arm challenge to a personal judgment entered against the Chase Manhattan Bank of New York (Bank), a nonresident corporation, as garnishee. The district court found personal jurisdiction over the Bank. We reversed. The claim for relief asserted against the Bank as a garnishee neither arose from nor was connected with the act or transaction by which the Bank submitted to the Kansas court's jurisdiction; i.e., the transaction of business with corresponding Kansas banks. 205 Kan. at 530-31.
Land Manufacturing is instructive here because Kluin claims Suzuki transacts business in Kansas under K.S.A. 60-308(b)(1) by selling cycles from at least five authorized, independent dealers in Kansas. (We discuss Kluin's additional claims of Kansas contacts, the web site, magazine articles and advertisements, and his phone calls to Oklahoma later in our opinion.) Land Manufacturing, Inc., claimed the Bank had representatives designated to handle its affairs in Kansas and that it engaged in the banking business through corresponding Kansas banks. In Land Manufacturing, we reasoned that to establish jurisdiction, the claim for relief must arise from or be connected with the act or transaction. We said:
"If process under K.S.A. 60-308(b)(1) is to have the effect of personal service the claim for relief must arise from, or be connected with, the act or transaction by which the nonresident submitted to the jurisdiction of the court.
"Assuming The Chase Manhattan Bank was transacting business in Kansas through corresponding banks there was no showing in this case that the claim for relief arose from such transaction of business with corresponding banks." 205 Kan. at 530.
Here, Kluin has not alleged that his claim for relief arose from a Kansas sales transaction with Suzuki.
In Schlatter v. Mo-Comm Futures, Ltd., 233 Kan. 324, 662 P.2d 553 (1983), we again reversed a district court that found personal jurisdiction over nonresident defendants. We said:
"The statute [K.S.A. 60-308(b)] specifically requires that the transaction of business or the commission of a tortious act must be in connection with the cause of action in question. In other words, the activities of Kircher and Johnmeyer [defendants] must have been in connection with the sale of the limited partnership interests to the plaintiffs. The fact that Johnmeyer may have taken construction jobs in Kansas in connection with his construction business or that both defendants had other investments in Kansas have no bearing upon the question of whether the defendants were transacting business in Kansas when the corporation, through its salesman, sold the securities to plaintiffs." 233 Kan. at 334.
Returning to Three Ten Enterprises, we note State Farm argued on appeal lack of personal jurisdiction because Three Ten's claim did not arise from the transaction of any business in Kansas as required by K.S.A. 60-308(b)(1). Three Ten was a Kansas limited partnership. State Farm was a foreign corporation authorized to do business in Kansas. A Three Ten employee in Nebraska stole money from Three Ten's premises in Nebraska. State Farm insured Three Ten un
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