Walmart V. Smith Family Farm Case Study

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QUESTION PRESENTED
Given the long-arm statute, which state or federal courts have proper personal jurisdiction over Wal-Mart and Smith Family Farms from the illness of a tainted cantaloupe that originated in Colorado?
BRIEF ANSWER
Given the long arm statute, Tennessee state or federal courts will most likely have proper personal jurisdiction over Wal-Mart but not over Smith Family Farm. As the principal place of business and place of incorporation, Wal-Mart is subject to suit in both Arkansas and Delaware. Smith Family Farms is subject to suit in Colorado. Both Smith Family Farms and Wal-Mart are subject to suit in South Carolina. Neither Wal-Mart nor Smith Family Farms is subject to suit in North Carolina.
DISCUSSION
A court may not exercise
…show more content…
Although it can be argued that Grocery Distributors Co. acted as an agent of Smith Family Farms, this agency theory may be denied as the plurality of Nicastro arrived to the conclusion that it is not the defendant’s expectations, but his targeted activities to the forum that subject him to judgment in the State’s courts. Smith Family Farms did not advertise outside of Colorado nor sell to Tennessee. It cannot be said that Smith Family Farms has purposefully availed itself of the benefits of conducting activities in Tennessee or focused on Tennessee. It was the unilateral acts of the Joneses that brought the injury to Tennessee. Under the concurring opinions of Nicastro, a “minimum contacts” application can reach the same holding, as Smith Family Farms had no direct contacts with the forum and a single isolated sale, even if accompanied by sales efforts, is not sufficient. Thus, it would exceed constitutional limits for Tennessee to exercise jurisdiction over Smith Family …show more content…
For a corporation, general jurisdiction is a place where it can be fairly regarded as home. To determine where a corporation is at home, one must appraise the corporation’s activities in their entirety nationwide and worldwide. Smith Family Farms directs all of its sales either in Colorado or to Grocery Distributors Co. The exact percentage of sales to Grocery Distributors Co. is not known, but those transactions most likely occur in Kansas, at Grocery Distributors’s location. In this case, Smith Family Farms cannot be regarded “at home” in Tennessee. Wal-Mart has more than 5,000 stores nationwide, of which only 143 are in Tennessee. The Tennessee locations account for 2.86% of stores in the nation. These figures do not include the worldwide locations or economic realities. With this information, Wal-Mart cannot be said to be “at home” in

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