Using Agents For Ministerial Functions
Author:
Author: . Bornstein, P.a" href="http://www.articlesbase.com/authors/samuel-d.-bornstein,-p.a/304967.htm">Samuel D. Bornstein, P.a
The courts of the State of New Jersey--and the other state courts in sister states--have broad, but limited jurisdiction. In other words, they cannot adjudicate every dispute. There are constitutional limits upon their power to adjudicate disputes involving a defendant who does not reside within the jurisdiction of the Court.
The issue is often litigated, and
New Jersey's Appellate Division revisited the issue recently.
The plaintiffs were sophisticated investors who purchased stock allegedly as a result of defendant's misleading statements.
Defendant was a multibillion dollar gold mining company. It explored for gold and operated gold mines in various parts of the world, but not in New Jersey. Defendant had no offices or
employees in New Jersey. It was incorporated in Canada, where it maintained its corporate offices. Defendant's stock was traded on the Toronto and New York stock exchanges. It continuously used three New Jersey companies as transfer agents and to provide its stockholders with information, as required by law.
Defendant moved to dismiss the lawsuit, claiming that New Jersey could not lawfully exercise jurisdiction since it was not a resident of this State. The trial court denied the motion and defendant appealed.
YOU BE THE JUDGE: Does a state have jurisdiction over an out-of-state defendant who regularly uses agents to do work within the state?
The Appellate Court reversed, holding that general jurisdiction may constitutionally be exercised only where defendant's contacts with the forum state are sufficiently continuous and substantial to approximate physical presence. Here defendant continuously employed agents for its stock exchange-related obligations, but these activities were not substantial in relation to its core business--mining and selling gold--and thus did not approximate a physical presence.
The decision points out that a courtroom can bring justice and may be the only way to protect your rights.
Bornstein Law Firm knows courtrooms; we have harnessed the power of the law in courtrooms to bring justice for our clients for decades in Allendale, Wyckoff, Ridgewood, Paramus, Leonia and Saddle River and throughout Bergen County, in Clifton, Ringwood, Passaic, Little Falls and elsewhere in Passaic County, in South Orange, West Caldwell, Roseland, Glen Ridge, Montclair and throughout Essex County, in New Brunswick and Iselin in Middlesex County, in Whippany, Montville, Jefferson, Harding and Kinnelon in Morris County, in Linden, Kenilworth, Plainfield and Cranford in Union County, in Jersey City, Kearny, Union City and North Bergen in Hudson County, in Hightstown, Hamilton Township, Lambertville and Princeton in Mercer County and throughout the State of New Jersey, as well as New York City. Please contact us to discuss how we can help you in a new lawsuit or provide a "second opinion" about your pending lawsuit. There is no obligation for the initial consultation.About the Author:
Author, Samuel D. Bornstein, is associated with the law firm (
http://www.bornsteinlawfirm.com/ ) and has 40 years of experience in representing individuals and a wide variety of businesses from Fortune 100 companies that need specialized assistance to smaller companies that look to the firm as their "in house" lawyer for general day-to-day advice. The firm is experienced with transactional work and litigation, emphasizing corporate and partnership operations, employment and workplace law, professional negligence, malpractice matters, immigration, civil rights and real state matters and insurance defense.
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