Conflict of Laws Page 1 1 SLIDES WORLD-WIDE VOLKSWAGEN CORP. v. WOODSON (pg 593) 2 WORLD-WIDE VW v. WOODSON WRECK AND “CRASHWORTHINESS” PRODUCTS SUIT IN OKLAHOMA AGAINST NY CAR DEALER AND DISTRIBUTOR 3 WORLD-WIDE VW v. WOODSON DEALER AND DISTRIBUTOR HAVE NO OTHER CONNECTION WITH OKLAHOMA OTHER THAN THAT THE CAR WAS FORESEEABLY TAKEN THERE BY PURCHASERS 4 WORLD-WIDE VW v. WOODSON QUESTION: CAN OKLAHOMA CONSTITUTIONALLY EXERCISE JURISDICTION OVER NY DEALER AND DISTRIBUTOR? 5 WORLD-WIDE VW v. WOODSON HELD: NO 6 WORLD-WIDE VW v. WOODSON THEY HAVE NO SUCH CONTACTS WITH OKLAHOMA AS WOULD SUBJECT THEM TO SUIT THERE 7 WORLD-WIDE VW v. WOODSON FORESEEABILITY WAS NOT ENOUGH 8 WORLD-WIDE VW v. WOODSON SOME MORE DIRECT CONNECTION BETWEEN DEFENDANT AND STATE REQUIRED Fall 2010 Class 16 NOTES Conflict of Laws Page 2 9 SLIDES HISTORICAL BACKGROUND OF CONSTITUTIONAL LIMITS ON PERSONAL JURISDICTION 10 “CAN THE ISLAND OF TOBAGO PASS A LAW TO BIND THE RIGHTS OF THE WHOLE WORLD?” BUCHANAN v. RUCKER (1808) (NOT IN CASEBOOK) 11 BUCHANAN v. RUCKER TOBAGO HAS A LAW PERMITTING SERVICE ON ONE “ABSENT” FROM THE ISLAND BY NAILING A SUMMONS TO THE COURTHOUSE DOOR 12 BUCHANAN v. RUCKER PLAINTIFF TOOK JUDGMENT AGAINST MERCHANT FROM DUNKIRK, THEN LIVING IN LONDON WHO NEVER WAS ON THE ISLAND 13 BUCHANAN v. RUCKER ENGLISH COURT REFUSED TO ENFORCE THE JUDGMENT 14 BUCHANAN v. RUCKER DEFENDANT MUST HAVE BEEN PRESENT IN THE JURISDICTION OR THE JUDGMENT IS NO GOOD AND CANNOT BE ENFORCED 15 HISTORICAL BACKGROUND PENNOYER v. NEFF (1877) — (p. 590) TERRITORIAL APPROACH TRADITIONAL BASES FOR JURISDICTION: SEIZE DEFENDANT’S PROPERTY IN STATE (IN REM) 16 SERVE DEFENDANT IN STATE (IN PERSONAM) Fall 2010 Class 16 NOTES Conflict of Laws Page 3 17 SLIDES HISTORICAL BACKGROUND PENNOYER’S CONCEPT WAS ONE OF POWER — DESCENDS FROM WRIT OF AD CAPIAS 18 AD CAPIAS: (THE SHERIFF SEIZES THE DEFENDANT AND HOLDS HIM UNTIL HE PAYS) 19 YOU CAN’T SEIZE AND HOLD DEFENDANT UNLESS HE IS PRESENT 20 HISTORICAL BACKGROUND PENNOYER RECOGNIZED EXCEPTIONS: YOU CAN BE SUED IN YOUR DOMICILE YOU CAN CONSENT TO BE SUED ANYWHERE 21 HISTORICAL BACKGROUND HESS v. PAWLOSKI (1927) (p. 591) NON-RESIDENT MOTORIST ACTS ARE OK 22 HESS v. PAWLOSKI BY DRIVING ON STATE’S HIGHWAYS, MOTORIST “CONSENTS” TO BE SUED THERE 23 HISTORICAL BACKGROUND SIMILARLY, CORPORATIONS “CONSENTED” TO SUIT BY DOING BUSINESS IN THE STATE 24 HISTORICAL BACKGROUND NOTE THAT BESIDES “TRADITIONAL BASES” FOR JURISDICTION, THERE MUST BE NOTICE AND OPPORTUNITY TO DEFEND Fall 2010 Class 16 NOTES Conflict of Laws Page 4 25 SLIDES WUCHTER v. PIZZUTTI (1928) (NOT IN CASEBOOK) OVERTURNS NON RESIDENT MOTORIST ACT FOR LACK OF NOTICE 26 HISTORICAL BACKGROUND INTERNATIONAL SHOE CO. v. WASHINGTON (1945)(p. 592) 27 INT’L. SHOE V. WASHINGTON WASHINGTON STATE TRIES TO ENFORCE UNEMPLOYMENT TAX ON MISSOURI SHOE COMPANY FOR SALESMEN IN WASHINGTON 28 INT’L. SHOE V. WASHINGTON EARLIER CASES HELD MERELY SOLICITING BUSINESS IN STATE WAS NOT “DOING BUSINESS” 29 INT’L. SHOE V. WASHINGTON ESTABLISHED “MINIMUM CONTACTS” RULE: ARE THERE CONTACTS WITH THE STATE SUCH THAT IT IS “FAIR” TO SUBJECT DEFENDANT TO SUIT 30 MCGEE v. INTERNATIONAL LIFE INSURANCE CO. (p. 603) TEXAS INSURANCE COMPANY THAT DOESN’T DO BUSINESS IN CALIFORNIA TOOK OVER BUSINESS OF COMPANY WHOSE INSURED HAD MOVED TO CALIFORNIA 31 MCGEE V. INT’L. LIFE INSURANCE AFTER SEVERAL YEARS, INSURED KILLED HIMSELF Fall 2010 Class 16 NOTES Conflict of Laws Page 5 32 SLIDES MCGEE V. INT’L. LIFE INSURANCE HELD: CALIFORNIA HAD SUFFICIENT CONTACT AND INTEREST TO LITIGATE CASE 33 HANSON v. DENCKLA (p. 596) SETTLOR OF A DELAWARE TRUST MOVED TO FLORIDA AND SUED THE DELAWARE TRUSTEE THERE 34 HANSON v. DENCKLA HELD: NO SUFFICIENT CONTACT 35 KULKO v. SUPERIOR COURT OF CALIFORNIA (p. 774) HUSBAND COULD NOT BE SUED FOR CHILD SUPPORT IN CALIFORNIA DIVORCE WHERE MOTHER AND CHILD LIVED BUT HE HAD NO CONNECTION 36 CALDER v. JONES (p. 610) WRITER AND EDITOR IN FLORIDA SUBJECT TO SUIT IN CALIFORNIA WHERE LIBEL VICTIM LIVED EFFECT OF LIBEL WAS IN CALIFORNIA 37 PERSONAL JURISDICTION IN FEDERAL COURTS: IN 99% OF CASES, RULE IS THE SAME AS IN STATE COURT 38 PERSONAL JURISDICTION IN FEDERAL COURTS: IF YOU CAN’T SUE IN STATE COURT YOU CAN’T SUE IN FEDERAL COURT 39 SHOPPING LIST OF TYPES OF CASES THAT PERMIT SUIT ANYWHERE (p. 608) Fall 2010 Class 16 NOTES Conflict of Laws Page 6 40 SLIDES FEDERAL RULE 4(K) (p. 608-09) NOTE EXCEPTION TO RULE 4(K) WHERE NO STATE HAS JURISDICTION 41 BURGER KING CORP. v. RUDZEWICZ (p. 610) 42 BURGER KING CORP. v. RUDZEWICZ MICHIGAN FRANCHISEES BUY BURGER KING FRANCHISE IN MICHIGAN FROM BURGER KING IN FLORIDA 43 BURGER KING CORP. v. RUDZEWICZ CONTRACT (SIGNED IN MICHIGAN) SELECTS FLORIDA LAW AND RECITES IT IS ENTERED INTO IN FLORIDA 44 BURGER KING CORP. v. RUDZEWICZ BURGER KING SUES IN FLORIDA 45 BURGER KING CORP. v. RUDZEWICZ QUESTION: CAN THE MICHIGAN FRANCHISEE WHO HAS NEVER BEEN TO FLORIDA, BE SUED IN FLORIDA? 46 BURGER KING CORP. v. RUDZEWICZ HELD: YES — CONTACT IS SUFFICIENT 47 BURGER KING CORP. v. RUDZEWICZ FRANCHISEES COULD FORESEE BEING SUED IN FLORIDA 48 BURGER KING CORP. v. RUDZEWICZ BY SELECTING FLORIDA LAW, THEY AVAILED THEMSELVES OF ITS PROTECTION Fall 2010 Class 16 NOTES Conflict of Laws Page 7 49 Fall 2010 Class 16 SLIDES NOTES ASAHI METAL INDUSTRY CO. LTD. v. SUPERIOR COURT OF CALIFORNIA (p. 620) 50 ASAHI v. SUPERIOR COURT JAPANESE TIRE STEM MANUFACTURER IS THIRD PARTIED INTO CALIFORNIA SUIT AGAINST TAIWANESE TIRE MANUFACTURER FOR INDEMNITY 51 ASAHI v. SUPERIOR COURT JAPANESE CO. MADE NO SALES IN CALIFORNIA BUT KNEW IT’S VALVES WERE INCORPORATED IN TIRES SOLD IN CALIFORNIA 52 ASAHI v. SUPERIOR COURT HELD: NO JURISDICTION 53 ASAHI v. SUPERIOR COURT PUTTING COMPONENTS IN STREAM OF COMMERCE, KNOWING OTHERS WILL SELL FINISHED PRODUCT IN STATE, IS NOT ENOUGH 54 ASAHI v. SUPERIOR COURT NOTE THAT SUIT BY CALIFORNIA PLAINTIFF WAS SETTLED 55 ASAHI v. SUPERIOR COURT ONLY DISPUTE WAS BETWEEN TWO FOREIGN MANUFACTURERS 56 ASAHI v. SUPERIOR COURT KEY TO CASE MAY BE IN 3RD AND 4TH FULL PARAGRAPHS ON P. 623 57 ASAHI v. SUPERIOR COURT NOTE, ALSO, COURT BACKS OFF IT’S APPROVAL OF A CONTRARY RULE IN GRAY v. AMERICAN RADIATOR IN WORLD-WIDE VOLKSWAGEN (p. 625) Conflict of Laws Page 8 58 SLIDES WHEN YOU HAVE SOME TIME: WORLD-WIDE VOLKSWAGEN v. WOODSON— THE REST OF THE STORY 72 NEB.L.REV. 1182 (p. 604-5) NEXT WEEK READING ASSIGNMENT: WED: October 20, 2010: 627-664 THURS: October 21, 2010: 664-708 Fall 2010 Class 16 NOTES