Can calls by a Florida company to a Vermont phone number subject that Florida company to a nationwide class action in Colorado? Yes, according to the Tenth Circuit’s recent decision in Hood v. American Auto Care, LLC, 2021 U.S. App. LEXIS 38400 (10th Cir. Dec. 28, 2021).

Mr. Hood claims he purchased a used car and soon after “began receiving prerecorded calls to his cell phone claiming that his car warranty was about to expire and offering to sell him an extended warranty.” Not interested in the warranty, but annoyed by the calls, Mr. Hood sued the Florida company in Colorado for its (allegedly) illegal calls.

The wrinkle: Mr. Hood’s phone number has a Vermont area code.

Emphasizing that wrinkle, the District Court dismissed for lack of personal jurisdiction. It held that the call to Mr. Hood’s Vermont phone number did not “arise out of, or relate to,” the company’s calls to Colorado. So there was no personal jurisdiction over the Florida company.

Citing the Court’s recent decision in Ford Motor Co. v. Montana Eighth Judicial District Court, 141 S. Ct. 1017 (2021), the Tenth Circuit reversed. Recall that in Ford, the automaker argued that it could not face suit in Montana or Minnesota for defects that killed and maimed in those States because neither vehicle was designed, manufactured, or first sold in the State where the accident occurred. The Court rejected that argument, explaining that specific jurisdiction arises when a defendant “serves a market for a product in the forum State and the product malfunctions there.”

Applying Ford, the Tenth Circuit rejected the Florida company’s argument that personal jurisdiction requires causation—that jurisdiction attaches only if the conduct “gave rise” to the claim. Instead, consistent with the Court’s analysis in Ford, the Tenth Circuit held that a court can exercise personal jurisdiction over an out-of-state defendant that has injured a resident plaintiff if:

(1) the defendant has purposefully directed activity to market a product or service at resident of the forum, and

(2) the plaintiff’s claim arises from essentially the same type of activity, even if the activity that gave rise to the claim was not directed at forum residents.

Applied to Mr. Hood’s lawsuit, “Ford makes clear that specific jurisdiction is proper when a resident is injured by the very type of activity a nonresident directs at residents of the forum State—even if the activity that gave rise to the claim was not itself directed at the forum State.”

This case is a good reminder that specific jurisdiction requires that conduct “arises out of, or relates to” the harm complained of. But that does not mean the plaintiff must prove direct causation to keep the case in his or her chosen forum.

PLANO, TX — The CMI Group, an employee-owned company (ESOP) and the industry-leading solutions provider to clients nationwide, announced today the promotion of Carrie Finney to Chief Executive Officer and Chairman of the Board. She will also continue in her role as President. Founder and long-serving Chairman and CEO Tom Stockton will transition to his new role as Chief Strategy Officer and will continue as a Director on the Board.

Since joining the company in 1998, Finney’s innovative strategies and results-focused, collaborative vision have propelled her career at CMI, including her most recent role as President and CFO. Over the course of her career at The CMI Group, she has led the company’s growth and diversification into multiple lines of business and expanded vertical markets, including government, toll authorities, telecommunications, utilities, healthcare, insurance, and financial services. 

“I’m honored to lead The CMI Group during this exciting time of growth and innovation, and I’m very proud of our employees and their continued contributions to this company. It’s because of them that we’re successful,” said Finney. “I appreciate the opportunities and the trust that Tom gives his team, including myself, always looking for ways to raise people up and promote from within, and allowing us to reach our full potential. I look forward to growing this organization for and with all our employee-owners.”

The CMI Group’s full suite of customer care services has expanded to include omnichannel communications for customer care, receivables management, outsourced sales, business processes support, and outsourcing, among many more. As part of Finney’s vision for international growth, the Mexico and Philippines locations were established by The CMI Group in 2021, cementing a global footprint both nearshore and offshore to support customers with “follow-the-sun” capabilities, scheduling accommodation, and cost savings for The CMI Group’s clients. She plans to continue that growth trajectory and expand the company’s global reach as CEO.

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“Carrie is a collaborative leader who seeks input from her team, and she holds us all accountable to achieving the results we strive toward,” said Stockton. “I always wanted to build a company that was successful not for success’s sake, but one that was well respected and achieved a reputation for integrity in the marketplace. I think we’ve accomplished that at CMI thanks to our people who have stayed true to our values and showing that relationships matter for both our employees and our clients. The CMI Group is a 100-percent ESOP company, giving every employee a vested interest in the company’s growth and success.”

As President, CEO and Chairman of the Board, Finney will oversee the day-to-day operations of the company while focusing on growth strategies and expansion into additional markets and services. Stockton will continue to advise the executive leadership team in strategy and growth opportunities. “I’m very grateful for my time at CMI, from the very beginning until now. I couldn’t ask for a better, more rewarding career,” added Stockton.

Stockton founded The CMI Group with two additional partners and one employee in 1985 and grew the company to serve a multitude of industries across the United States. Today the company provides a spectrum of services for its many clients and counts more than 600 employees in its global operations, providing omnichannel customer care and enhanced operational efficiency for clients and their consumers.

About The CMI Group, Inc.

The CMI Group, a leader in accounts receivable management, customer care, revenue cycle management, and omnichannel communications. The CMI Group is a 100-percent employee owned solutions provider to clients nationwide. Through its subsidiaries, The CMI Group delivers innovative business process outsourcing, revenue cycle, accounts receivable and contact center solutions resulting in enhanced operational efficiency and increased revenue for its clients. The CMI Group believes there is power in relationships and success occurs when individuals collaborate on a common objective. The CMI Group is dedicated to building the trust and bonds that deliver positive results for both our clients and their consumers. Visit thecmigroup.com for more information.

The CMI Group and The CMI Group logo are trademarks of The CMI Group and/or its subsidiaries.

MINNETONKA, Minn. — Central Portfolio Control (CPC), a debt collection agency in the western suburbs of Minneapolis, MN, helped the less fortunate this holiday season through an initiative to assemble and distribute care packages for people experiencing homelessness in the area. The Twin Cities of Minneapolis and Saint Paul, just a short drive East from CPC’s headquarters, have an ongoing need for homeless assistance and resources, particularly during the winter as the temperatures routinely dip well below freezing. 

Homelessness Near the Twin Cities

Both the suburb of Minnetonka and to a much greater degree the nearby Twin Cities have seen a rise in homelessness as the effects of the pandemic continue to disrupt the local economy and as rental rates steadily climb. In March 2020, at the precipice of the historic pandemic disruption, a Minnetonka news source reported homelessness and housing instability as a relatively small but still present and overlooked issue in the area as compared to the Twin Cities. 

MN Homeless Study

A triannual study conducted by Wilder Research showed that from 2015 to 2018, homelessness had increased 10% across the state, with a 62% increase of people not staying in a formal shelter setting. The report stated that more people were either doubled up in someone else’s home or sleeping outside due to a shortage of shelter space. The triannual study scheduled for 2021 has officially been postponed to 2022, but the area resources have been feeling the effects of housing instability, much like so many cities across the nation. 

Urgent Need for Shelter

A Twin Cities news article from March of 2021 stated that the dispersal of area homeless encampments due to health safety concerns during the pandemic had drawn media attention but area organizations had been working to provide hotel rooms when possible. The Minnesota Coalition for the Homeless wrote a letter for the MN state legislature dated December 16, 2021, citing the urgent need for increased shelter and affordable housing across the state and particularly in the Twin Cities.

Taking Action

It is with this contextual backdrop that Central Portfolio Control employees decided to take action and find a way to assist their neighbors in need this holiday season. CPC purchased enough materials to assemble care packages to deliver to people experiencing homelessness. The team worked together to assemble 70 bags, each containing a drawstring bag, lunch, snacks, a mylar thermal blanket, a knitted beanie, thermal gloves, and thermal socks. CPC employees will hand out the care packages on Christmas Eve and Christmas. 

Learn More

To learn more about homelessness in your state, visit the United States Interagency on Homelessness at usich.gov or the National Alliance to End Homelessness at endhomelessness.org. 

About Central Portfolio Control, Inc.

Headquartered in Minnetonka, MN, Central Portfolio Control, Inc. is a full-service and nationally licensed collection agency focused on the recovery of distressed accounts receivable. Since being founded in 1998, the Central Portfolio Control team provides top quality services while they continue to grow the company to better serve both our clients and our local community.