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Object Techs. Inc. v. Marlabs Inc.

The trial court did not have long-arm jurisdiction over the out-of-state defendant because the parties transacted business over the phone or the Internet and defendant did not transact business in Georgia.

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Object Technologies, Inc., a Georgia corporation, sued Marlabs, Inc., a Virginia corporation, for unpaid invoices totaling $25,380, plus interest and attorney’s fees, asserting jurisdiction over Marlabs under the Long Arm Statute, OCGA § 9-10-90 et seq. Marlabs answered, denying that the court had personal jurisdiction over it, and moved to dismiss the complaint. The trial court granted the motion, and Object Technologies appeals. For the reasons that follow, we affirm the trial court.

In an affidavit accompanying the motion to dismiss, Marlabs’ president said he had advertised on an Internet job site seeking a computer programmer to fulfill a contract Marlabs had with a client. Object Technology’s president responded to the ad, and the two men determined that Object Technology had a suitable employee available for subcontracting. However, they could not agree on which company’s contract to sign, so they signed both contracts. Marlabs’ president asserted that his company’s principle objective was to protect his client from Object Technology’s solicitation, and Object Technology’s principle objective was to prevent Marlabs from hiring the employee. In response to the motion to dismiss, Object Technology’s president submitted an affidavit affirming that he and Marlabs’ president both signed both contracts. Both contracts include a choice of law provision, each specifying a different state: Georgia in the Object Technologies contract and Virginia in the Marlabs contract. Additionally, Object Technologies’ contract contains a provision selecting Georgia as the exclusive jurisdiction for adjudicating disputes under the contract.

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