InternationalShoeCovWashington(P)SCOTUS1945

(SHOETESTMinimalContact)Ifdefendanthascontinuous/systematicbusiness,largevolume
ofbusiness,canusethecourttoprotectitselfthenenoughContactinforumstatetoestablish
jurisdictionandsuingthemwillnotoffendtraditionalnotionsoffairplayandsubstantialjustice.
InternationalShoev.WAWAsuesShoew/statestatutethatcompanymustpayunemployment
fund.Shoesaystheycantbeservedb/cnoppl/nobusiness/andsonoDueProcess.Courtholds
dueprocessonlyrequiresforinpersonam,ifnotpresent,hehaveminimumcontactswithitsuch
thathedoesnotoffendtraditionalnotionsoffairplayandsubstantialjustice.
MinimumContactsContinuousandsystematicandhavegivenrisetothecauseofactionsued
upon(InternationalShoe)
Facts:Intl.Shoe,aDEcorporationwithheadquarters(principalplaceofbusn)inSt.Louis,
hadsalesmanoperatinginWashingtonState,butnooffices,etc.Statesuedforfailureto
contributetothestateunemploymentfund.Statuteauthorizedthecommissioner,Washington,
toissueanorder&noticeofdelinquentcontributionsbyMailingthenoticetononresident
employers.OrderwasserveduponanemployeeinWashingtonandthenalsosentby
registeredmailtoSt.Louisoffice.Intl.Shoemakesspecialappearancetocontest
jurisdiction(servicewasimproper)(legalfictionnotthereforpurposesofpresenceor
contact).ShoearguesitsActivitiesinStatedoNotAmounttoPresence
PH:LowercourtruledPwasentitledtorecoverunpaidcontributions,Shoeappeals,SC
affirms
I:DoesdueprocessrequireonlyminimumcontactsfornonresidentDtohaveinpersonamjx?
R:Dueprocessrequiresminimumcontacts
C/H:Yes,minimumcontactsmustbepresentwithstateandtheiractsneedtobedeemed
sufficienttorenderacorporationliabletosuitthere.Ds(shoe)activitesweresufficient
theywerecontinuousandestablishedsufficientcontactsforPtoenforceobligations.
Affirmed
CourthereBreakswithHessParadigm
DecidesStandardforEstablishingPersonalJurisdiction(forCorporations)willbe
MinimumContactsbetweenDefendant&ForumState
o TheseminimumcontactsmustbesuchthatTraditionalNotionsofFairPlay&
SubstantialJusticearemet
TwoConceptstofillMeaningofMinimumContacts:
o 1)DefendantsBurdenindefendinginthisforum&hisFairExpectationsofbeing
suedtheremustbeconsidered
General:Commercialactivitiesbecomingmoreinterstate,thuspartyshould
expecttobecalledinseveralareas.
Specific:Whatisthisbusinesssparticularrelationwiththeforum?Would
askingthemtocomebemorethantheynormallydothere?
o 2)Reciprocity:Defendanttookadvantageof&invokedthebenefits&protectionof
thelawsofthestate,soitmustalsomeetsuchobligations
Taxonomy/ClassificationSystem:
o Continuous&SystematicContacts&CauseofActionArisesfromthesecontacts:
YesPJ(SpecificJurisdiction)
o Continuous&SystematicContacts&CauseofActionisUnrelatedtocontacts:
WontruleoutPJ(ifactivitiesweresufficientlycontinuous&systematicGeneral
Jurisdiction)
o Sporadic,Casual,SingleAct&CauseofactionArisesfromtheactcouldgiverise
toPJ
o Sporadic,Casual,SingleAct&CauseofactionUnrelatedNoPJ
Summary:Modernconceptionofserviceofprocessnotice>jurisdiction
NEW:minimumcontactsinquiry:tradlnotionsoffairplayandsbstl
justice

 FaithfultoPennoyerline?Statesovereignty,instateactivities
MinimumContactsContinuousandsystematicandhavegivenrisetothecauseof
actionsuedupon(InternationalShoe)
o SporadicandcasualactivitiesofDinforum,orsingleisolatedactarenotenoughto
subjectforsuitifthereispurposefulavailmentandcandefendselfwithstate
laws(Hansonv.Denckla)
o Continuousactivitymaysubjecttosuitevenwithcausesofactionareunrelatedto
activityinforum(Pekinsv.Benguet)
o Sporadicforumactivity,evenasingleact,maysufficeundercertaincircumstances
torenderj(x).(McGeev.IntlLifeIns.Co.)
AfterInternationalShoedecision,statesbegantopassLongArmStatutes
Longarmstatutesallowedstatestoexpandthereachoftheircourtsinassertingpersonal
jurisdiction
SingleActionStatutes:Pointtoasingleact(committingatortuousactinthestate)&provide
aruleforserviceofprocess
ActivityStatutes:DoingBusinessinthestate
LaundryListStatutes:Listofactsoractivities
CatchAllStatutes:AllowjurisdictiontotheLimitsoftheConstitution
o

TwoKindsofLegalChallengestoAssertionofPersonalJurisdiction:
Statutorylanguage/interpretationgrantofauthority
Constitutionalityofstatutorygrantofauthority
FourKeyConceptsinDeterminingMinimumContacts:
Reciprocity(InternationalShoe)
UndueBurdenonDefendant(InternationalShoe)
Volition/PurposefulAvailment(Gray)
Systemicorforumspecificfactors(Isthisforumagoodplacetolitigate?
Evidence/witnesses?Intereststatehasinprovidingaforumforvindicationorprotectionof
itscitizensrights?)(Gray&WWVW)

Gray(P)vAmericanRadiator&StandardSanitaryCorpSCofIllinois
o StreamofCommercecase
o F:GraysaidthatTitanandOhiocorpmadesafetyvalveinOhioandsoldto
AmericanRadiatorwhichincorporateditintoawaterheatherinPA,andradiators
getsoldinIllinois.GrayallegesthatTitansnegligencecausetheheatertoexplode,
injuringher.ExplosionhappenedinIllinois.TitandidnobusninIllinois
o PH:PbringsincircuitcourtofCookCounty,Titanmadespecialappearance,filed
motiontosquashbctortiousactdidn'thappeninIllinois,courtgrantedand
dismissed,Dappeals,constitutionalquestioninvolvedsogoestoSCofIllinois
(aboutinterpretingstateconstitutionstatute),Reversedandremanded(Titanliable)
o I:Whereanonresidentsonlycontactwithastateisaninjury,isthatcontact
adequatetosubjectnonresidenttojxofthestatewithoutviolatingdueprocess?
o Illinoishassingleactionlongarmstatute
o IntroducesconceptofVolitionindeterminingminimumcontactsdefendant
voluntarilyinjectedhisproduct(valve)intothestreamofcommerce(Later:
PurposefulAvailment)

o
o
o

o
o

DefendantContestsjurisdictiononTwoGrounds:
Statutedoesnotapplytoit(tortiousactdidnotoccurinstatemanufacture
ofpartoccurredelsewhere)
Ifstatutedoesapply,thenstatuteisunconstitutionalforgoingtoofarto
grantingauthoritytoassertpersonaljurisdiction(baseduponasingleact)
C/H:Yes.TortiousactiscommittedWheretheresultingdamage(injury)occurs.
CourtholdsthatMinimumContactsexistwherethemakerofaproductinjectsthat
productintothestreamofcommerceforultimatesaleinanotherstate;not
unreasonabletoholdmakerresponsibleinthatstate
CourtfocusesonForseeabilityofmakersproductsendingupinIL
Courtalsonotesthatthecorporationhadengagedinsomeactorconductbywhich
heinvokedthebenefits&protectionsofthelawsofthestate
CtalsodepartsfromanalysisoffairnesstoDandintroducesmoresystemic
concernstherelevantfactortest.ItlooksattheappropriatenessofIllinoisasa
forum.
Paternalisticinterestinprotectingcitizensandneedtogivethemaplace
wheretheycanaffirmtheirrights.
Efficiencyofadjudicationbettertodothecasewherethingsoccurred,
witnesses,etc.
Forumsindependentinterestinhavingthingsthattookplacewithinthat
foruminthatforum.
CivilPracticeAct16(summonsmaybepersonallyserveduponanypartyoutside
thestate)
CivilPracticeAct17(b)nonresidentwhocommitstortiousactwithinthestateof
Illinoissubmitstojx
Summary:Ifproductisinstreamofcommerce,companyshouldexpect/foresee
beingsuedoutsidestate.Notinjustunilateralactionbyconsumer.
F:GrayinjuredwhenwaterheaterexplodesinIllinoisbecauseofsafetyvalve
manufacturedbyTitan.
Inordertosuemusthave:
ConstitutionalforLongArm14thamendmentandInternational
ShoeTest
StatutoryforLongArmIllinoishasStatutethatsaysanyonethat
commitstortinIllinoiscanbesuedthere
BroadReading:Youareliablebecauseyouritemscanbesoldanywhere
andeverywheremustdefendwhereverproductisinmarket.
NarrowReading:YouareONLYliableifyouhavesubstantialrevenueand
contact.