Heating-ventilation and air conditioning systems

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Reference no: EM13961952

Atwater Electronics is a New York corporation with its headquarters and manufacturing facilities in New York. Atwater manufactures electronic switches and sells 100% of its switches to Breezeway Systems. Breezeway Systems is also incorporated and located in New York. Breezeway incorporates Atwater’s switches into heating, ventilation, and air conditioning (HVAC) systems that Breezeway sells nationwide. 100% of the electronic switches in Breezeway HVAC systems are manufactured by Atwater. As a result, Atwater’s switches end up in households and other buildings nationwide and Atwater reaps indirect profit from nationwide sales even though never actually sells anything outside of New York. Breezeway sells 25% of its HVAC systems in Nevada, so 25% of Atwater’s profits are derived indirectly from HVAC systems that are sold and installed in Nevada. Atwater also always sends several representatives to an annual 3-day HVAC trade show in Nevada every year, where they help Breezeway promote its systems. Breezeway sells very few of its HVAC systems in California, but it did receive a special order from the Z Hotel in San Diego, which installed a Breezeway HVAC system with a Breezeway thermostat in every hotel room. Atwater specially designed a set of switches for this special order that allowed each room’s thermostat to be able to operate with the Z Hotel’s central computer system. Cheryl Conway is a Nevada resident who, while on vacation in San Diego, stayed in the Z Hotel. When she touched the Breezeway thermostat in her hotel room, she received a severe electric shock that required medical attention and caused damage to her heart. Conway alleges that the shock was a result of a faulty Atwater switch in the thermostat. Both California and Nevada have “limits of due process”-style long-arm statutes. Assume that Conway serves Atwater properly with service and that all notice requirements for Due Process are satisfied. (1) If Conway sues Atwater in Nevada, will there be personal jurisdiction over Atwater? (2) Will the answer be different if Conway sues Atwater in California? Why/why not?

Reference no: EM13961952

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