## Facts

- Continental Forest Products, Inc., an Oregon corporation, sold lumber and plywood from Oregon; White Lumber Sales, Inc. was a Florida corporation buying and selling lumber and plywood.
- White had prior purchasing dealings with Continental.
- White initiated the transaction by telephoning Continental in Oregon to request a price quotation for twenty carloads of plywood to be manufactured to White’s specifications.
- After Continental provided pricing and terms, White telephoned in a purchase order; Continental accepted and began performance through an Oregon mill, and the order was later confirmed by mail.
- The plywood was manufactured in Oregon to White’s specifications and shipped by rail to an out-of-state destination.
- A dispute arose after initial shipments regarding alleged nonconformity; Continental sued White in Oregon for the purchase price and for damages tied to plywood manufactured but not shipped and alleged breach as to the remaining carloads.
- Continental served White under Oregon’s long-arm statute provision authorizing jurisdiction for “transacting business” in Oregon.
- White specially appeared and moved to quash service for lack of personal jurisdiction; the trial judge denied the motion.
- White sought mandamus to compel the trial judge to quash service; the matter reached the Oregon Supreme Court on a demurrer to the alternative writ.

## Issues

1. Whether, consistent with due process, a nonresident buyer “transacted business” in Oregon under ORS 14.035(1)(a) by initiating and contracting for custom manufacture in Oregon through telephone and mail communications, where the claim arose from that contract.
2. Whether mandamus should issue to require the trial judge to quash service of process for lack of personal jurisdiction.

## Decision

- The Oregon Supreme Court sustained the demurrer to the alternative writ of mandamus.
- The court held that White’s Oregon-related activities constituted “transacting business” within Oregon for purposes of ORS 14.035(1)(a).
- The court concluded that exercising personal jurisdiction over White comported with federal due process because White purposefully created a substantial connection with Oregon and the suit arose from that connection.
- The court refused to order the trial judge to quash service, allowing the underlying contract action to proceed in Oregon.

## Legal Principles

- Oregon’s long-arm statute is intended to extend to the maximum extent permitted by federal due process.
- Due process permits specific personal jurisdiction when a defendant has minimum contacts with the forum such that suit there is consistent with fair play and substantial justice.
- A single contract can supply sufficient contacts when the defendant purposefully initiates a substantial commercial relationship connected to forum-state performance and the litigation arises out of that relationship.
- Physical presence in the forum is not required; purposeful forum-directed conduct through communications and contractual obligations tied to in-forum performance can establish “transacting business.”

## Conclusion

Oregon courts could exercise long-arm jurisdiction over an out-of-state buyer that initiated and entered a substantial, custom-manufacture purchase contract performed in Oregon, because the buyer’s purposeful contacts created a sufficient forum connection and the seller’s claims arose directly from that transaction.


State ex rel. White Lumber Sales, Inc. v. Sulmonetti, 252 Or. 121, 448 P.2d 571 (Or. 1968)