This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.
Facts
The Plaintiff, while residing in California, sought to purchase a home in New Mexico and contracted with the Defendant, a franchisee of Pillar To Post, Inc., to inspect the property. The inspection did not reveal that the home's radiant floor heating system contained allegedly defective polybutylene pipes, despite the Plaintiff's specific inquiry about them. After purchasing the home, the Plaintiff discovered the defective pipes and alleged that the Defendant negligently or fraudulently concealed their existence (paras 1-3, 8).
Procedural History
- District Court of Bernalillo County: Granted Pillar To Post's motion to dismiss for lack of personal jurisdiction (para 3).
Parties' Submissions
- Plaintiff-Appellant: Argued that Pillar To Post had sufficient minimum contacts with New Mexico to establish personal jurisdiction through its franchise relationship with the Defendant and its internet website (para 4).
- Defendants-Appellees: Contended that Pillar To Post lacked the requisite minimum contacts with New Mexico and that the franchise relationship and website were insufficient to establish personal jurisdiction (paras 3, 9).
Legal Issues
- Whether the franchise relationship between Pillar To Post and the Defendant established sufficient minimum contacts to support personal jurisdiction in New Mexico.
- Whether the Pillar To Post internet website provided sufficient minimum contacts to establish personal jurisdiction in New Mexico.
Disposition
- The Court of Appeals of New Mexico affirmed the district court's dismissal of Pillar To Post for lack of personal jurisdiction (para 34).
Reasons
Per Pickard J. (Fry and Vigil JJ. concurring):
Franchise Relationship: The Court held that the franchise relationship between Pillar To Post and the Defendant did not establish sufficient minimum contacts with New Mexico. The Plaintiff failed to demonstrate that Pillar To Post purposefully availed itself of the privilege of conducting activities in New Mexico. The evidence showed that the Defendant operated independently as a franchisee, and there was no agency relationship between the Defendant and Pillar To Post (paras 14-22).
Internet Website: The Court adopted the "sliding scale" approach from Zippo Manufacturing Co. v. Zippo Dot Com, Inc. to evaluate whether a website could establish personal jurisdiction. It found that the Pillar To Post website was primarily passive, providing only information and minimal interactivity. The Plaintiff initiated contact with the Defendant through the website, but no evidence showed that Pillar To Post intentionally directed its activities toward New Mexico or derived monetary benefit from the Plaintiff's use of the website (paras 23-33).
Conclusion: The Court concluded that neither the franchise relationship nor the website established the requisite minimum contacts to satisfy New Mexico's long-arm statute or constitutional due process requirements. Accordingly, the district court's dismissal was upheld (para 34).