Louisiana Court's Exercise Of Personal Jurisdiction Over A Maryland Resident Was Proper
(October 2010) By Kevin M. Cox, Associate
For more information, contact Paul Farquharson.
Lieberman, et al. v. Mayavision, Inc.,
No. 2754 (Md. App. Oct. 1, 2010)
On May 23, 2008, a Louisiana court entered a default
judgment against Melvyn Lieberman ("Mr. Lieberman") and Lieberman & Walisko, in
favor of Mayavision, Inc. ("Mayavision"), a Spanish language television station.
On July 29, 2008, Mayavision recorded the foreign judgment in the Circuit Court
for Montgomery County. On December 19, 2008, Mr. Lieberman and Lieberman &
Walisko moved to vacate the foreign judgment, arguing that the Louisiana court
lacked personal jurisdiction over them. The circuit court denied their motion
and they filed an appeal presenting the following question for review by the
Court of Special Appeals of Maryland: "Did the circuit court err in denying the
motion to vacate the entry of the foreign judgment?"
Mr. Lieberman, a Maryland resident and a licensed engineer,
owned Lieberman & Walisko, a consulting engineering firm in Maryland. He
contracted to perform services for Mayavision; however, the scope of those
services was a matter of dispute. Mr. Lieberman contended that he was hired to
provide consulting engineering services and that he only traveled to Louisiana
to review the efforts of Mayavision's local telecommunications engineer to get
the television station operating and on the air. Mayavision, on the other hand,
asserted that Mr. Lieberman was responsible for the design, acquisition, and
installation of a new transmitter antenna for the television station. Mayavision
contends that the antenna transmitter installation was a complete failure and
exposed it to substantial liability to other parties.
In 2008, Mr. Lieberman and Lieberman & Walisko were
sued in a Louisiana court by Mayavision. Mr. Lieberman did not respond to
the lawsuit. Thereafter, the Louisiana court entered and recorded judgment
in favor of Mayavision against Mr. Lieberman and Lieberman & Walisko for
$313,552.00 as a result of the breach of contract, negligent performance,
and failure to perform. On July 29, 2008, Mayavision filed a motion to
enroll foreign judgment in the Circuit Court for Montgomery County. That
same day, the foreign judgment was recorded in the circuit court.
On August 27, 2008, Mr. Lieberman and Lieberman &
Walisko filed a Motion to Vacate Entry of Foreign Judgment and requested
that the court refuse to recognize and enforce the judgment, arguing that
the Louisiana court lacked personal jurisdiction over them because they did
not do business in Louisiana and their physical contacts with Louisiana were
nonexistent. On December 19, 2008, Mayavision filed an opposition arguing
that the Louisiana court properly exercised specific or special jurisdiction
and that Mr. Lieberman purposely availed himself of the benefits of doing
business in Louisiana and established minimum contacts with the state.
Mayavision appended seven (7) bills issued by Mr. Lieberman and Lieberman &
Walisko for consulting services from October 4, 2006 through May 30, 2007.
These bills indicated that Mr. Lieberman made regular contact with persons
in Louisiana by phone and email, and he traveled to Louisiana at least two
(2) times to work on the project.
The circuit court denied the Motion to Vacate the
Judgment, finding that Mr. Lieberman and Lieberman & Walisko had minimum
contacts with Louisiana. Mr. Lieberman and Lieberman & Walisko timely
appealed the circuit court decision, which the Court of Special Appeals
upheld.
Maryland's Uniform Enforcement of Foreign Judgments Act
provides the procedure to enforce a foreign judgment. The Act states that a
State court is bound by a judgment recorded by a court in another state
unless the recording court lacks jurisdiction. The Court of Special Appeals
held that the Louisiana court's exercise of personal jurisdiction was proper
under the due process clause of the Fourteenth Amendment. Mr. Lieberman
communicated with individuals in Louisiana on a regular basis, he traveled
to the foreign jurisdiction on two (2) occasions to consult with individuals
regarding the installation of the television antenna and transmitter, and
the litigation before the court resulted from the failed installation of the
television antenna and transmitter. Thus, the minimum contacts test was
satisfied.