In Summers Group v. Tempe Mechanical, Summers (Rexel) sold electrical materials used in a construction project that went into bankruptcy. In the litigation to determine where various claimants stood in their efforts to collect, the appears court held that because Summers was the first lienholder to file a claim, it stood first to collect.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Jurisdiction. Alex Sutton, a professional golfer living in Middleburg, Florida, entered into a sponsorship agreement with ARS & Associates, a Michigan partnership. Among other things, the agreement provided that (1) ARS would sponsor Sutton on a Professional Golfing Association (PGA) tour, (2) ARS would pay all of Sutton's expenses, (3) ARS and Sutton would split the proceeds (whatever remained after ARS had been reimbursed for expenses) fifty-fifty, and (4) ARS would provide health insurance for Sutton. Preliminary negotiations were carried out mostly over the phone. ARS drew up the agreement in Michigan and sent it to Sutton in Florida; Sutton signed and returned the contract to ARS. ARS then signed the agreement and sent a copy of it to Sutton. Sutton subsequently participated in several senior PGA events, including two tournaments in Florida. While playing golf in a senior PGA tournament in Palm Springs, California, Sutton suffered a heart attack and, as a result, later incurred costs of more than 100,000 for open-heart surgery and related medical expenses. Because ARS had not obtained health-insurance coverage for Sutton, Sutton sued ARS in a Florida state court for breach of the agreement. ARS moved to dismiss the action for lack of personal jurisdiction. Can the Florida court, under its long arm statute, exercise personal jurisdiction over the Michigan defendant in this case? Discuss.