Long Arm Jurisdiction Does Not Extend to Florida Defendant
(March 2010) By Tamiya N. Wilkes, Associate
For more information, contact Paul Farquharson.
Richard Frieman v. Flipping for Phonics, Inc.,
Civil No. JFM-09-2903 (D. Md. March 4, 2010) available at:
http://www.mdd.uscourts.gov/Opinions/Opinions/frieman04mar10.pdf
Ellen Stiener ("Stiener"), the vice president of Flipping for
Phonics ("Defendant"), a Florida-based business that produces and markets
children's books. In 2007, Stiener was at a gathering held by the mother of
Plaintiff, Richard Frieman ("Frieman"), a Maryland resident. After learning that
Frieman was an illustrator, Stiener approached Frieman and informed him that
Defendant was looking to enter into a business relationship with an illustrator.
In October 2007, Steiner sent an email to Frieman setting
forth the nature of their contemplated relationship. Specifically, the email
stated that plaintiff would send "art work, illustrations, and written
workboards" to Florida to be used in connection with Defendant's materials.
Frieman signed the email and faxed it to defendant. Steiner signed and accepted
the document on Defendant's behalf in Florida.
Frieman performed some work for Defendant, for which he was
compensated by checks sent from Florida to Maryland. Defendant later decided
that Frieman's style of illustrations was not consistent with Defendant's
product and informed Frieman that it would not be using any of his work in its
books and materials.
Frieman filed suit in the United States District Court for
the District of Maryland alleging breach of contract, seeking recovery for 25
percent of Defendant's profits for an unspecified period. Defendant filed a
Motion to Dismiss for lack of personal jurisdiction, arguing that none of its
representatives have ever visited Maryland for business reasons, and that
Defendant has no offices, employees, or bank accounts in Maryland. In response
to Defendant's motion, Frieman argues that Maryland's long arm statute, MD. CODE
ANN., CTS. & JUD. PROC. § 6-103(b)(1), permits the Court to "exercise personal
jurisdiction over a person, who directly or by an agent . . . transacts any
business or performs any character of work or service in the State." Frieman
argued that Defendant actions – initiation of contact, entering into an
agreement, sending emails to Maryland, and making numerous telephone calls –
were sufficient to constitute transacting business in Maryland.
According to the Court, Frieman's "argument has no merit
whatsoever." There was no contact between the Defendant and Maryland – the
initial contact between the parties was made in Florida, not Maryland, and the
email (contract) was executed by Defendant in Florida. The Court further stated
that there is no authority to support Frieman's proposition that merely sending
emails to someone in Maryland or placing telephone calls to him in Maryland from
out of state meets the transaction of business test. Maryland courts have
expressly stated that a person's performance of professional services in
Maryland, does support the assertion of personal jurisdiction over the
corporation. Zavian v. Foudy, 130 Md. App. 689, 700 (2000). As such, the Court
granted Defendant's Motion to Dismiss, stating that the Maryland courts are not
permitted to subject an out-of-state defendant to jurisdiction in Maryland
solely because of the unilateral activities of a Maryland independent
contractor.