An Interactive Website Can Constitute Purposeful Availment for Purposes of Specific Jurisdiction
Tags A recent case points out that, while the internet may be shrinking the world, in doing so it is broadening concepts related to jurisdiction. Braille, LLC (”Braille”) is a limited liability company formed in Florida that sells batteries for automotive use. Braille has no physical presence in the State of Tennessee in the way of office space or other place of business. The company is physically located in Sarasota, Florida. Braille does not have dealers or authorized distributors in Tennessee that maintain an inventory of Braille products.
Key Components, Inc. d/b/a XS Power (”XS Power”) manufactures and sells performance products for automobiles that include high-performance batteries. XS Power and Braille became engaged in a dispute. XS Power sued Braille in Tennessee. Braille moved to dismiss for lack of jurisdiction alleging it has no physical presence in the State of Tennessee.
Braille does not use direct mail advertising in Tennessee, but it does maintain an internet website, which can be accessed worldwide. While the website is not directed to the State of Tennessee, during 2008, Braille received 14 orders from individuals in Tennessee, and the sales from these individuals totaled $2,787.21. Nine of these orders were place by telephone, and five were place via Braille’s website. In 2009, only three telephone orders and three internet orders were received from customers in Tennessee for a total of $254.95.
Braille further claimed it is a very small company whose liabilities exceed its assets. Therefore, it would be burdensome to defend this lawsuit in Tennessee. In contrast, XM Power has dealers and distributors in Florida. Therefore, Braille claimed that any dispute between the parties would be in Florida not Tennessee.
XS Power countered that Braille’s website is highly interactive. It permits customers to purchase products and have them shipped directly to Tennessee; to search for authorized distributors in Tennessee and surrounding areas; and to register products with Braille for warranty coverage on products sold in Tennessee. While Braille’s website indicates that there are no authorized distributors in Tennessee, the website does indicate that there are five authorized distributors that can and do ship products to Tennessee within one day.
The Court concluded that the website of Braille was sufficiently interactive such that Defendant had purposely availed itself of the privilege of acting in Tennessee. The Court found it important that, although Braille had only received a handful of online orders from residents in Tennessee, it continued to stand ready to do further business with customers in Tennessee. In addition, the fact that Braille had sales representatives servicing Tennessee demonstrated that it was capable of providing services to customers in Tennessee and was willing to do so. Key Components, Inc. v. Braille, LLC, 2010 WL 2490539 (E.D.Tenn. Jun. 16, 2010).
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