Massachusetts Jurisdiction Over Internet Based Companies

If an individual conducts business over the internet withIt is also likely that the facts of this case bring it within
a web-based company and the parties enter into anSection 3(d) of the long-arm statute as well. The first
agreement, and the company either breaches theelement requires the Plaintiff to demonstrate that the
agreement or commits some form of fraudulent orDefendants' acts or omission caused tortious injury
deceptive business practice with the buyer, can theinside the Commonwealth. Cunningham v. Adrox. Inc.,
buyer sue the company in his or her home state? The40 Mass. App. Ct. 279, 281 (1996). The Plaintiff must
issue become even more complex or confusing if thenext show that the Defendant regularly does or solicits
defendant's place of business is unknown, and all ofbusiness in this forum, or engages in any other
the Defendants business is conducted through thepersistent course of conduct in Massachusetts, or
internet. Even given this complex and confusingderives substantial revenue from goods used or
situation, a court would likely allow the buyer to bringconsumed or services rendered in Massachusetts.
suit in their home state holding that the court canNoonan v. Winston Co., 135 F.3d 85, 91 (1998). Internet
establish personal jurisdiction over the defendant.sites have been used as one factor in ascertaining
A court may exercise personal jurisdiction over awhether the defendants are regularly soliciting business
person (or corporation), who acts directly or by anfor purposes of Section 3 (d). Other courts have found
agent, as to a cause of action in law or equity arisingthat personal jurisdiction exists based on Internet Web
from the person'ssites. Web Site Activities of Nonresident Person on
(a) transacting any business in MassachusettsCorporation as Conferring Personal Personal under
(b) contracting to supply services or things in the stateLong-Arm Statutes and Due Process Clause, 81 A.L.R.
(c) causing tortuous injury by an act or omission in the5th 41 (2000). A computer consulting company was
statefound to regularly solicit business in this
(d) causing tortuous injury in the state by an act orCommonwealth, for purposes Section 3 (d) of the
omission outside this commonwealth if he regularlylong-arm statute, where it maintained an internet web
does or solicits business, or engages in any othersite that could be continuously accessed by
persistent course of conduct, or derives substantialMassachusetts residents, and a part of its advertising
revenue from goods used or consumed or serviceslisted another Massachusetts company as one if its
rendered, in this commonwealth....G.L c. 223A, § 3new customers, who had company name recognition
Pursuant to Section 3(a), the "transacting any business"in the Commonwealth. Hasbro Inc., v. Clue Computing,
clause, permits the court's exercise of jurisdiction "if theInc., 994 F.Supp. 34, 39 (1997).
defendant...transacted any business in theEven if the literal requirements of the long-arm statute
Commonwealth, and if the alleged cause of actionare satisfied, it also must be established that the
arose from such transaction of business." Good Hopeexercise of jurisdiction under State law is consistent
Indus. v. Ryder Scott Co., 378 Mass. 1, 6 (1979). Awith basic due process requirements mandated by the
person transacts business in the Commonwealth ifUnited States Constitution. Tatro v. Manor Care Inc.,
there are any "purposeful acts by an individual,416 Mass. 767 (1994). Jurisdiction is proper if the
whether personal, private, or commercial." Ross v.defendants also had minimum contacts with the forum
Ross, 371 Mass. 439, 441 (1976). Actual physicalstate at the time of filing the complaint, such that the
presence of a defendant in this jurisdiction is notassertion of jurisdiction over defendants would not
required to acquire personal jurisdiction under theoffend traditional notions of fair play and substantial
"transacting business" clause. Good Hope Indus., Inc. v.justice. Id.
Ryder Scott Co., 378 Mass. 1 (1979).