CIVIL PROCEDURE CLASS 31 Professor Fischer Columbus School of Law The Catholic University of America November 6, 2002 WRAP-UP OF LAST CLASS We wrapped up our study of subject matter jurisdiction by finishing up our study of when cases can be removed from state court to federal court. Removal is a limit on the ability of a plaintiff to choose the forum. We discussed International Shoe, a landmark case setting out the modern theory of personal jurisdiction. International Shoe’s minimum contacts test significantly expands personal jurisdiction beyond Pennoyer’s power rationale, which had become outmoded. WHAT WILL WE DO TODAY? Continue our study of personal jurisdiction by 1. Learning about general and specific jurisdiction 2. Discussing a case applying International Shoe’s minimum contacts test, World-Wide Volkswagen v. Woodson (1980). THE SUPREME COURT: MODERN STANDARD FOR PERSONAL JURISDICTION According to Chief Justice Stone in International Shoe, the modern standard for a state’s assertion of personal jurisdiction over a non-resident defendant is that “due process requires only that in order to subject a defendant to a judgment in personam, if he be not present within the territory of the forum, he have certain minimum contacts with it such that the maintenance of the suit does not offend "traditional notions of fair play and substantial justice.“ [citation omitted]”. MINIMUM CONTACTS Does Stone articulate any criteria for assessing a corporation’s contacts or activities in the forum state? MINIMUM CONTACTS It is evident that the criteria by which we mark the boundary line between those activities which justify the subjection of a corporation to suit, and those which do not, cannot be simply mechanical or quantitative. The test is not merely, as has sometimes been suggested, whether the activity, which the corporation has seen fit to procure through its agents in another state, is a little more or a little less. Whether due process is satisfied must depend rather upon the quality and nature of the activity in relation to the fair and orderly administration of the laws which it was the purpose of the due process clause to insure. CONTACTS: Under International Shoe Can a state validly assert personal jurisdiction over a nonresident defendant if: Such D has no contacts with the forum state? There is a single act or contact by D with the forum state? D has business activities within the state that (a) give rise to the claim for which suit is brought in the forum state? (b) are unrelated to the claim for which suit is brought in the forum state? SPECIFIC JURISDICTION GENERAL JURISDICTION What is general jurisdiction? (see, e.g. Perkins v. Benguet Consolidated Mining Co. CB p. 671) What is specific jurisdiction? (see,e.g., McGee v. International Life Insurance Co. CB p. 671) PURPOSEFUL AVAILMENT What is purposeful availment? (See Hanson v. Denckla CB pp. 674-75) Stone in International Shoe But to the extent that a corporation exercises the privilege of conducting activities within a state, it enjoys the benefits and protection of the laws of that state. The exercise of that privilege may give rise to obligations; and, so far as those obligations arise out of or are connected with the activities within the state, a procedure which requires the corporation to respond to a suit brought to enforce them can, in most instances, hardly be said to be undue. APPLICATION OF LAW TO THE FACTS Why does Stone find that there was personal jurisdiction over International Shoe? To what extent does Justice Black disagree with Justice Stone? IMPORTANT NOTE: PERSONAL JURISDICTION IN FEDERAL COURT The 14th Amendment due process clause only limits state power. Although there are no CONSTITUTIONAL constraints on a federal court’s exercise of jurisdiction over a defendant with an appropriate relationship to the US as a whole who is not resident in the state where the court sits, Congress has limited the jurisdiction of federal courts See FRCP 4(k) – purpose: to eliminate forumshopping. NB “100 mile bulge rule”. World-Wide Volkswagen v. Woodson (1980) For the whole story of the lawsuit, see Charles W. Adams, World-Wide Volkswagen v. Woodson – The Rest of the Story, 72 Neb. L. Rev. 1122 (1993). The article is a fascinating read. The Accident (1977) 1976 Audi 100 LS WORLD-WIDE VOLKSWAGEN V. WOODSON Who are the plaintiffs? Where are plaintiffs resident at the time of the accident? Where were the plaintiffs citizens for the purposes of diversity at the time of filing the lawsuit? WORLD-WIDE VOLKSWAGEN Who are the defendants? Which Ds challenge personal jurisdiction? Where is each D who contests jurisdiction incorporated at the time of filing the action? Where does each such Defendant have its principal place of business at the time of filing the action?