Personal Jurisdiction

Question 1

Full Faith and Credit Clause Const. Art IV

Answer 1

Courts of other states have to enforce judgments of another state unless the judgment is invalid.

Defendant cannot raise lack of jurisdiction if he already has in the original action.

Question 2

Three ways to challenge Personal Jurisdiciton

Answer 2

1) Collateral Attack
2) Raise the defense in a pre-answer motion or in D’s answer to the charges.
3) File for a special appearance.

Question 3

Collateral Attack

Answer 3

Decline to appear, suffer a default judgment and attack the judgment only when the D seeks to enforce it in a subsequent proceeding (in jurisdictional state)

Only jurisdiction is open to collateral attack.

Question 4

Specific Jurisdiction

Answer 4

Where the D’s activities in the forum state relate directly to the case of action.

Jurisdiction over non-resident–> Minimum contacts with the forum state + contacts will be weighed against the “reasonable or fairness” of a possible suit.

Question 5

The Stream of Commerce

Answer 5

2 Theories manufacturer need be:

(1) Be aware that its product will find its way into the stream of commerce or
(2) It must purposefully avail itself (advertising in the forum) (Majority)

i. Designing the product for market in the forum state
ii. Advertising in the forum state
iii. Establishing channels for providing regular advice to customers in the forum state
iv. Marketing through a distributor who has agreed to act as the sales agent in the forum state

Question 6

General Jurisdiction

Answer 6

Slam Dunk

Where the cause of action is not related to the activities, but because the defendant has such SUBSTANTIAL CONTACTS in the forum state, it is always going to be fair to sue there.

a. If the defendant is a corporation with its place of incorporation or principle place of business in the forum state, then there will always be general jurisdiction (jurisdiction is presumed to be fair)
b. If the defendant is an individual with his/her place of domicile in the forum state there will always be jurisdiction (jurisdiction is presumed to be fair)
c. If neither of the above applies, the defendant’s contacts must be continuous, substantial, and systematic so as to justify bringing suit against the defendant on any cause of action.

Question 7

Substantial Contacts

Answer 7

Corporations: Principle place of business and the location of incorporation

Individuals: Place of domicile

Question 8

Presence of property in a state, will only serve as a valid basis where property is

Answer 8

(1) The Subject Matter Jurisdiction of the litigation
(2) The underlying cause of action related to the property

However, the presence of property in a state may still bear on the existence of jurisdiction by providing contacts among the forum state, the defendant, and the litigation (Note: It is just no longer conclusive).

Question 9

Long Arm Statute

Answer 9

Authorize courts to reach beyond their own borders and pull in nonresident defendants, even though the defendant has left the forum state or has never been in the state, he may be required to defend a suit there.

A court may exercise jurisdiction over a D only when the state or fed government authorizes it to do so.

Obtaining in personam jurisdiction over a non-resident D in a civil action requires a 2 pronged showing

(1) P must allege sufficient jurisdictional facts to bring D within coverage of state’s long-arm statute, and
(2) court must inquire whether sufficient minimum contacts are shown to comply with the requirements of due process.

Question 10

Notice of Service

Answer 10

(1) Must be reasonably certain under all the circumstances to apprize interested parties of the pendency of the action and
(2) Allow them an opportunity to present their objections in order to meet the requirements of due process

Question 11

Websites

Answer 11

Creating a website, like placing a product in the stream of commerce, may be felt nationwide but, without more, it is not an act purposefully directed toward the forum state.

ii. A passive website, one which does little more than make information available to those who are interested in it, is not grounds for exercise of personal jurisdiction.
iii. An interactive website, where a user can exchange information with a host computer, may be grounds for exercising personal jurisdiction – the minimum contacts in such cases are determined by examining the level of interactivity and commercial nature of the exchange of information that occurs on the web site.

Question 12

Fairness Test

Answer 12

i. Minimum contacts will be weighed against the “reasonable or fairness” of a possible suit; the reasonableness factors are:
(1) the burden on the defendant;
(2) the forum state’s interest;
(3) the plaintiff’s interest in obtaining convenient and effective relief;
(4) the shared interests of the several states; and
(5) social policy.

Question 13

Consent as a substitute for Power

Answer 13

If you have a valid forum selection clause, there can be no jurisdictional challenge, unless the clause was obtained through fraud or unconscionable practices.

Question 14

Notice of Service

Answer 14

i. Notice must be reasonably calculated (reasonably certain) under all the circumstances to apprize interested parties of the pendency of the action and afford them an opportunity to present their objections in order to meet the requirements of due process.
ii. Where conditions do not reasonably permit such notice, the form of notice chosen may not be substantially less likely to bring home notice than any other of the feasible and customary substitutes

Question 15

Determining Personal Jurisdiction Step 1:

Answer 15

i. First, look to the state’s long arm statute; is it satisfied?

1. If not, then the analysis stops – there cannot be jurisdiction.
2. If yes, then proceed

Question 16

Determining Personal Jurisdiction Step 2:

Answer 16

ii. Second, determine whether it is a case of specific or general jurisdiction and whether there are sufficient minimum contacts:
1. Specific Jurisdiction: Does the cause of action arise out of the contacts?
a. If yes, need only minimum contacts such that it would not offend fairness to make D defend in the forum
i. Voluntary / Directed / Purposeful acts by the defendant toward the forum
ii. Foreseeable that the defendant would anticipate being haled into court upon the contacts
b. If no, then you must look to see if there is a basis for general jurisdiction.

Question 17

Determining Personal Jurisdiction Step 3:

Answer 17

balance the contacts with the five fairness factors:
1. The burden on defendant: benefits and burdens

2. The forum state’s interest
3. The plaintiff’s interest in having case heard in the forum and the existing alternative forums
4. The interstate judicial system’s interest in efficient resolution
5. The shared interest of the states in furthering substantive social policies

Question 18

Types of Personal Jurisdiction

In Personam

Answer 18

1. “against a person” to obtain jurisdiction over a non-resident person one must personally serve that person with process within the borders of the state in question; when one wanted to obtain either money or injunctive relief; it would also suffice to determine the ownership of property

Question 19

Types of Personal Jurisdiction

in Rem

Answer 19

1. “against a thing” involving or determining the status of a thing and therefore the rights of persons generally with respect to that thing; the presence of property can be the basis for jurisdiction over claims of any sort as long as they are related to property. Need Notice: (See, Pennoyer v. Neff)

Question 20

Types of Personal Jurisdiction

Quasi In Rem

Answer 20

1. personal obligation but property is used to obtain jurisdiction
   a. abolished by Shaffner v. Heitner
   b. State lacks jurisdiction over an individual unless litigation arises out of his activities in the state.

Question 21

Notice by publication may be valid as a customary substitute where

Answer 21

(1) it is not reasonably possible or practicable to give more adequate warning;
(2) it is supplemental to another form of notice; or
(3) the interests involved are hypothetical.

Question 22

Franchises

Answer 22

To assert SJ over an out-of-state D who has not consented to suit in the forum, the D must have fair warning that his activities may subject him to the jurisdiction of a foreign sovereign

The fair warning requirement will be satisfied if

(1) The D purposefully directed his activities at residents of the forum and
(2) the litigation resulted from alleged injuries that arise out of or relate to those activities

The foreseeability of causing injury in another State is not a sufficient benchmark for exercising PJ.

The foreseeability that is critical to due process analysis is that the D’s conduct and connection with the forum state are such that he should reasonably anticipate being hailed into court there.