Thursday, May 2, 2013

Nebraska Jurisdiction Over Out of State Defendants


On April 19th the Nebraska Supreme Court upheld the dismissal of an Omaha woman's lawsuit against a Massachusetts bookseller over a rare, autographed novel in a decision that has implications for online merchants. The decision is available here.

Helen Abdouch had claimed in the lawsuit that Ken Lopez and his Massachusetts based business improperly used her name and position as executive secretary on John F. Kennedy's presidential campaign to sell an autographed copy of "Revolutionary Road" she said had been stolen from her in the 1960s.

Abdouch's lawsuit said Lopez, who bought the book in 2009 from someone in Georgia, used an inscription and Abdouch's name in online advertisements to sell the book. Abdouch's lawsuit cited a 1979 Nebraska state law that allows people to sue if their names or images are exploited for commercial gain.

The trial court dismissed the lawsuit, saying Nebraska did not have jurisdiction in the case, and Abdouch appealed, saying Lopez's online advertisement deliberately targeted her and other Nebraska residents.

In a case of first impression, the Nebraska Supreme Court said that Abdouch failed to show Lopez and his business have even a minimum connection to the state of Nebraska. Lopez and his business do not own, lease, or rent land in Nebraska and have never advertised directly or participated in book fairs in Nebraska, Nebraska Supreme Court Judge Michael McCormack wrote for the high court. He also noted that Lopez has only two Nebraska customers on his mailing list and that from 2009 through 2011, he made a total of $615 in sales to Nebraska residents out of an estimated $3.9 million in total sales.

The benchmark in determining whether a state court has jurisdiction over matters involving an out-of-state defendant "is whether the defendant's minimum contacts with the forum state are such that the defendant should reasonably anticipate being haled into court there," McCormack wrote. "Beyond the minimal website sales to Nebraska residents and mailing catalogs to two Nebraska residents, Lopez's and (his business') contacts with Nebraska are nonexistent."

If you are an out of state company being sued in Nebraska, contact Madathil Law Office and Angela Madathil would be happy to be your local counsel. The firm is involved in commercial litigation and can help defend your company against the suit.

Angela Y. Madathil
Madathil Law Office, LLC
Employment and Business Law

Serving clients in Omaha and Lincoln

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Omaha, NE 68102                            Lincoln, NE 68510

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Image from here.

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