Virtualmagic Asia, Inc. v. Fil-Cartoons, Inc.

In 1999 respondent Fil-Cartoons, Inc. (FilCartoons) entered into a contract with a California-based company, CaseyWemer Company (CWC), to provide animation production services for CWC’s 13-episode film project known as the GDB project. Fil-Cartoons then entered into a subcontract with appellant VirtualMagic Asia, Inc. (VMA) to provide the digital ink and paint portion of the animation production services for the GDB project.

Disputes arose over the amount Fil-Cartoons owed to VMA for the services VMA provided in connection with “retakes,” and VMA filed the present action against Fil-Cartoons. VMA’s action also named as defendants Kenneth E. Barackman and two corporations (Fantasia Animators Philippines, a Philippine corporation, and Fantasia Animators, Inc., a Nevada corporation), which are apparently the parent corporations of Fil-Cartoons. Although Barackman is a California resident, neither Fil-Cartoons nor its two corporate parents (collectively respondents) are California corporations. Respondents moved to quash service of the summons and complaint, arguing their California contacts were insufficient to permit a California court to exercise personal jurisdiction…