500 Motors, Inc. v. Superior Court

Opinion

REYNOSO, J.

The sole issue we are asked to determine is whether petitioner has sufficient minimum contacts with California to justify the

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assertion of jurisdiction over it by a California trial court. We conclude that the undisputed facts do not show such contacts. Accordingly, we issue a peremptory writ of mandate directing the respondent superior court to grant the motion to quash the service of summons requested by petitioner 500 Motors, Inc., an Oregon corporation.

I

The facts, we have noted, are not in dispute.

1

We deal with an under-, lying personal injury subrogation action brought by real party in interest, State Farm Mutual Automobile Insurance Company. Petitioner does no business in California. On October 8, 1977, it sold a 1968 Oldsmobile automobile to Danny and Arlleta Baker, each Oregon residents. Shortly after the sale of the automobile to the Bakers petitioner submitted the documents of title to the Oregon Department of Transportation. The certificate of title to the Bakers was issued by that department on November 15, 1977. In the meantime, Danny Baker drove the vehicle into California where he was involved in a collision in Shasta County on October 27, 1977.

The collision is alleged in the personal injury subrogation action to have been the result of the negligence of Danny Baker. As the result of the accident State Farm paid to its insureds, Robert Berlage and James L. Gilbert, the total sum of $28,000. State Farm obtained a release and trust agreement from its insureds and brought the underlying action in subrogation seeking to recover the $28,000 paid to its insureds. The basis for the claim against petitioner is the California permissive user statute, Vehicle Code section 17150, which provides: “Every owner of a motor vehicle is liable and responsible for death or injury to person or property resulting from a negligent or wrongful act or omission in the operation of the motor vehicle, in the business of the owner or otherwise, by any person using or operating the same with the permission, express or implied, of the owner.”