If you’re advertising through Google AdWords and your ad has the ability to show up in search engines across the country, does that mean you’re doing business in the states where your ad can show up? A recent case between a Pennsylvania car repairman and a New York car owner brought this controversial issue to court.

In this case, New Yorker Mike Grimaldi owned a vintage Camaro that was in need of repairs. When searching on Google, he found an ad for Mr. Guinn’s reapair shop in Pennsylvania. Grimaldi called Guinn and spoke with him about his car. After deciding to choose Guinn to do the repairs for his Camaro, Grimaldi shipped his beautiful Camaro to Guinn and didn’t hear from Guinn for about 14 months. Now 14 months later, the only thing Guinn has done is took the car apart to a point where it needs more repairs than before and has lost value.

Grimaldi decided to file a case against Guinn for the loss of value of his car. The place where Grimaldi screwed up is he filed the case in Brooklyn, near his home. Guinn’s attorneys told Brooklyn courts that they didn’t have jurisdiction because Pennsylvania is Guinn’s place of business. Grimaldi’s attorneys responded that by advertising on Google AdWords in the state of New York, they are conducting business in the state of New York, therefore giving Brooklyn courts jurisdiction.

The county court where the case was originally filed denied Guinn’s motion, finding that advertising on Google AdWords in the state of New York and doing business with a person in the state of New York means that Guinn is doing business in the state of New York. When Guinn appealed, the Second Department upheld the lower court’s decision stating, “Despite the fact that Guinn was not physically present in New York, the exercise of jurisdiction over him by the courts of this State does not offend due process.”

Although there are other reasons for the finding of this case, do you think that by advertising on Google AdWords in another state and then conducting business with a person from that state means that you no longer have the personal jurisdiction you thought you had? My take on it is this; if you’re advertising in another state and providing any type of goods and services to a person in that state, then the courts are absolutely right to say you can be tried or sued in that state. If you are just advertising using Google AdWords in another state and not conducting business or providing goods and services to a person in that state, then you should be able to keep personal jurisdiction. What’s your opinion? Make sure to comment below.