JKH Capital, LLC v. Tanglewood Owners, LLC

Summary

The North Carolina Business Court denied Addison Partners’ amended motion to dismiss for lack of personal jurisdiction. The court held that Addison Partners had sufficient minimum contacts with North Carolina because it participated in acquiring and financing a North Carolina apartment complex and provided due-diligence materials in connection with its sale to North Carolina plaintiffs. The court also ordered the parties to file a revised case management report and proposed case management order.

Holdings

1. North Carolina may exercise specific personal jurisdiction over Addison Partners because the company purposefully established substantial contacts with North Carolina that relate to and arise from JKH's claims.
2. Contacts made by Schneider and Malone could be attributed to Addison Partners because the evidence showed that they held themselves out as Addison Partners representatives while providing the due-diligence materials, even though they also acted for Tanglewood Owners.

Questions Presented

1. Whether North Carolina may exercise specific personal jurisdiction over Addison Partners in claims arising from due-diligence materials provided in connection with the sale of a North Carolina apartment complex.
2. Whether contacts made by Addison Partners' alleged agents, who also acted for an affiliated entity, may be attributed to Addison Partners for purposes of personal jurisdiction.

Disposition

other