California Judge Rules Online Auction Buyer Must Sue in Seller's State

[mandy]

Recently, Chief Judge Vaughn Walker of the Northern District of California ruled in Boschetto v. Hansing (Case No. C-06-1390, order issued July 13, 2006) that a Wisconsin resident’s sale of a vehicle on eBay to a California resident did not give rise to personal jurisdiction in California. In so doing, the Northern District joins several other jurisdictions in finding that a single online auction sale does not constitute the requisite "purposeful availment" with the forum state for the exercise of specific jurisdiction.

Implications

This ruling clarifies that a single sale or perhaps even occasional sales to California buyers will not alone create specific jurisdiction, much less give rise to general jurisdiction. While the opinion recognized the chilling effect that "too easy a test of personal jurisdiction could do to Internet commerce," it does not indicate whether the result necessarily would have been different had the defendant been a commercial or repeat seller and/or shipped the vehicle to the forum. Thus, what constitutes "purposeful availment" of California in the context of Internet commerce undoubtedly will continue to unfold...

full article: http://www.mondaq.com/i_article.asp_Q_articleid_E_42640