California Overseas Bank v. French American Banking Corp.

I respectfully dissent. I would affirm the superior court’s order granting the motion of defendant/respondent French American Banking Corporation (FAB) to quash service of process for lack of jurisdiction.

On this appeal, defendant FAB contended that (1) the California courts did not acquire jurisdiction over it due to the lack of the necessary minimum California contact involved in the transaction sued upon, and (2) that there was an insufficient showing by plaintiff of the existence of the requisite business relationship of FAB in California, or of sufficient economic benefits derived by FAB from California, which would subject it to the jurisdiction of the California courts. In addition, FAB disputed that the appearance of counsel for FAB during the proceedings below constituted an appearance subjecting it to the jurisdiction of the California courts. The majority have determined that there was such an appearance, and have reversed the trial court’s order on that basis alone. As I believe the order made below should be affirmed, I will address all three of FAB’s contentions on this appeal.

In addition to the facts set forth in the majority opinion, I add the following to…

Plaintiff California Overseas Bank appeals from the trial court's grant of defendant French American Banking Corporation's motion to quash service of process for lack of personal jurisdiction. [1]

The underlying litigation stems from the "back-to-back" issuance of two letters of credit allegedly issued, in conjunction with the sale and purchase of an air pollution control system, by Norco Process Corporation (Norco), a California corporation, to KSTAR International, another California corporation, in 1979. The parties arranged with Balfour Maclaine Overseas Ltd. (Balfour), an international trading and finance corporation, for Balfour to finance the transaction by arranging for the issuance of two letters of credit, one from its account with defendant French American Banking Corporation (FAB), a New York corporation, in favor of the seller, Norco, and the other in favor of Balfour, issued by plaintiff California Overseas Bank (COB), a California banking corporation, from the account of its customer, KSTAR, the buyer. The COB letter of credit was confirmed on December 20, 1979, by Security Pacific National Bank (Security Pacific), with whom COB maintains a…

Introduction

Plaintiff California Overseas Bank appeals from the trial court’s grant of defendant French American Banking Corporation’s motion to quash service of process for lack of personal jurisdiction.

Statement of Facts

The underlying litigation stems from the “back-to-back” issuance of two letters of credit allegedly issued, in conjunction with the sale and purchase of an air pollution control system, by Norco Process Corporation (Norco), a California corporation, to KSTAR International, another California corporation, in 1979. The parties arranged with Balfour Maclaine Overseas Ltd. (Balfour), an international trading and finance corporation, for Balfour to finance the transaction by arranging for the issuance of two letters of credit, one from its account with defendant French American Banking Corporation (FAB), a New York corporation, in favor of the seller, Norco, and the other in favor of Balfour, issued by plaintiff California Overseas Bank (COB), a California banking corporation, from the account of its customer, KSTAR, the buyer. The COB letter of credit was confirmed on December 20, 1979, by Security Pacific National Bank (Security Pacific), with whom…