Khalaf v. Bankers & Shippers Insurance

Niam Khalaf and Almaza Khalaf brought a complaint against Bankers & Shippers Insurance Company and James Dullard, an Illinois insurance agent, for damages arising out of the defendants' failure to provide proper insurance coverage for a third party, National Machine Servicing Company, Inc., against whom plaintiffs had taken a judgment. The judgment is unsatisfied. National Machine, an Illinois corporation, negligently repaired a machine which then caused physical injury to Niam Khalaf in Michigan. The defendant insurance agent obtained insurance covering National Machine from a New York insurance company, has never been a resident of Michigan, and has never conducted any business in Michigan. The Wayne Circuit Court, Roland L. Olzark, J., quashed service of process on defendant Dullard for lack of jurisdiction under the long-arm statute. The Court of Appeals, Danhof, P.J., and R. B. Burns and R. M. Maher, JJ., affirmed (Docket No. 21308). Plaintiffs appeal. Held : 1. There were less than the minimum contacts with Michigan required to satisfy Federal constitutional requirements, and this state cannot exercise jurisdiction over Dullard.