Personal Jurisdiction - Specific In Personam Jurisdiction

Question 1

Minimum Contacts

Answer 1

A company has minimum contacts in a state when the defendant has purposefully acted in a way to show the company has a connection to the state. This could be done by selling products, advertising, etc.

Question 2

Minimum Contacts for an Out-of-State Company

McGee v. International Life Insurance

SCOTUS 1957

Answer 2

A state court has jurisdiction over an out-of-state company if the company has substantial connections with the state.

Question 3

Relationship Between Contacts and Reasonableness

Answer 3

The defendant must have contacts within a state, but that’s not enough to establish specific jurisdiction. It must be reasonable for the defendant to be brought to court in the forum

Question 4

Contacts and Reasonableness

World-Wide Volkswagen v. Woodson

SCOTUS 1980

Answer 4

The exercise of specific jurisdiction is constitutional only when (1) the defendant has contacts in the forum state, (2) the plaintiff’s arose out of those contacts, and (3) personal jurisdiction is reasonable. The factors to consider when deciding reasonableness are

1. The burden put on the defendant to appear
2. The forum state’s interest in the adjudication
3. The plaintiff’s convenience
4. The interstate interest
5. The furtherance of public policy

Question 5

Choice of Law Clause

Answer 5

Parties can specify which state law will govern their contracts. This is usually binding but doesn’t necessarily mean that state has personal jurisdiction

Question 6

Forum Selection Clause

Answer 6

Parties can specify where a dispute will be litigated if one arises. Courts normally uphold these as long as they are reasonable.

Question 7

Factors for Personal Jurisdiction Based on Contracts

Burger King v. Rudzewicz

SCOTUS 1985

Answer 7

If parties have a contract, personal jurisdiction doesn’t necessarily have to be where the contract is. Courts must look at where the contract was negotiated, the contract provisions, and where the activities under the contract have occurred.

Question 8

Stream of Commerce

Gray v. American Radiator & Standard Sanitary Corp.

Supreme Court of Illinois 1961

Answer 8

If a company sells its product to a manufacturer and the manufacturer uses the product as a component part of its product, the company is subject to personal jurisdiction in the state in which the final product is sold regardless of any other factors.

Question 9

Stream of Commerce Plus

Answer 9

A company must put its product in the stream of commerce AND have a substantial relationship to the state for the state to have personal jurisdiction

Question 10

Stream of Commerce - Minimum Contacts

Asahi Metal Industry Co. v. Superior Court

SCOTUS 1987

Answer 10

A company doesn’t have minimum contacts in a state just because it is aware that the components it made and sold would reach the state in the stream of commerce.

Question 11

“Evidence” Test for Specific

Answer 11

A claim arises out of the defendant’s in-state contacts only when his contacts can provide evidence for one or more of the elements of the claim.

Question 12

“But For” Test for Personal Jurisdiction

Answer 12

A claim arises out of the defendant’s in-state contacts only if it would not have arose but for the defendant’s contacts in the state

Question 13

Focus on the Claims, not the Cases

Answer 13

If a case has multiple claims and only some of them arise out of the defendant’s in-state contacts, the state court can’t assert personal jurisdiction over the case.

Under the Constitution, federal courts can have personal jurisdiction over a case as long as the claims arise out of the defendant’s contacts anywhere in the United States.

Question 14

No Contact

World-Wide Volkswagen v. Woodson

SCOTUS 1980

Answer 14

A company does not purposely have a contact in the forum state if a customer buys its product in one state and then brings it to the forum state