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Court Watch

By Susan H. Morton and David W. Oppenheim
October 08, 2004

Franchisor's Web Site and Franchise in New Mexico Did Not Create Personal Jurisdiction over Franchisor in State

The New Mexico Court of Appeals (the state's intermediate appellate court) has ruled that a home inspection franchisor's “passive” Web site did not confer personal jurisdiction over the franchisor in New Mexico in an action commenced by a dissatisfied customer. The fact that the franchisor had a franchisee in the state was also insufficient to confer personal jurisdiction over the franchisor, the court ruled. Sandra Sublett v. Scott Wallin and Pillar To Post, Inc., 94 P.3d 845, __ N.M. __, (N.M. Ct. App. 2004).

After Sandra Sublett discovered that the home inspection performed by a Pillar To Post franchisee had failed to reveal that the pipes in the radiant floor heating system of her new house were made from an allegedly defective material, she filed suit against the franchisee and Pillar To Post, alleging negligence, negligent misrepresentation, fraud, and other legal violations. The lower court granted Pillar To Post's motion to dismiss for lack of personal jurisdiction. Sublett appealed, and the New Mexico Court of Appeals affirmed the dismissal.

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