Graber v. Prelin Industries Inc. , 368 F.Supp. 1358 (1974)

Graber v. Prelin Industries Inc.

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he U.S. District Court held that the statute did not violate the due process rights of the executives at Prelin Industries. The executives claimed that they could not be summoned to South Dakota because they never personally entered the state or purposefully availed themselves of state laws. However, they had reassured South Dakota residents that they had complied with applicable state laws, had made contracts with South Dakota residents authorizing them to do business in the state, and had accepted checks drawn on South Dakota banks. The state long arm statute held that personal jurisdiction could be exercised over anyone who committed a tort within the state. The court found that the distributors had made out a prima fascia tort claim for damages within the state, and that the contacts the company had with the state satisfied the minimum requirements of due process.

Full case and case summary are available at: http://www.mlmlegal.com/legal-cases/Graber_v_PrelinIndustriesInc.php

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Published In: Civil Procedure Updates, MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:Federal, 8th Circuit, South Dakota | United States

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