Reasor-Hill Corporation v. Harrison
Facts
Planters Flying Service sued Barton in Arkansas to collect an account for spraying insecticide on Barton's cotton crop in Missouri. In response, Barton alleged that the flying service damaged his growing crop by using an adulterated insecticide and filed a cross-complaint against Reasor-Hill, an Arkansas corporation that manufactured the chemical, claiming it negligently put on the market an insecticide unsuited to spraying cotton. Reasor-Hill was not authorized to do business in Missouri. Reasor-Hill argued that Arkansas courts lacked jurisdiction because the cross-complaint sought damages for injury to real property located in Missouri.
Issue
May Arkansas courts entertain a suit for injuries to real property situated in another state? More specifically, may an Arkansas court hear Barton's cross-complaint against an Arkansas corporation for damage to a growing cotton crop in Missouri?
Rule
Arkansas courts may entertain an action for injuries to real property situated in another state. The court rejects the traditional common-law rule denying jurisdiction over such claims when applied to interstate disputes within the United States.
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Delta Crest moves to dismiss, arguing that the claim is a local action that can be heard only where the land is located. How should the Arkansas court rule?