Franklin American Mortgage v. Dream House Mortgage Corporation of Rhode Island, et al. v. Fireman & Associates, LLP, et al.

This appeal involves in personam jurisdiction over an out-of-state defendant. Plaintiff, a Tennessee mortgage company, filed suit against the appellee herein, a Rhode Island mortgage company, after plaintiff allegedly suffered injury from a breach of contract on the part of appellee, stemming from plaintiff's purchase of a loan from appellee in the secondary mortgage market. In the posture of plaintiff, appellee filed a third-party complaint against the Massachusetts lawyer and firm, the appellants herein, who had underwritten the loan that appellee ultimately sold to the Tennessee plaintiff. The lawyer and firm filed a motion in the Tennessee court to dismiss the third-party complaint for lack of personal jurisdiction. The trial court found that Tennessee had personal jurisdiction over the third-party defendant law firm and lawyer, and denied their motion to dismiss. The lawyer and firm appeal. Finding that there are not sufficient contacts with Tennessee, we reverse the trial court's finding of personal jurisdiction, and remand for further proceedings.