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Tues., Oct. 1.

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Presentation on theme: "Tues., Oct. 1."— Presentation transcript:

1 Tues., Oct. 1

2 PERSONAL JURISDICTION IN STATE COURT

3 general jurisdiction over corporations

4 Int’l Shoe “there have been instances in which the continuous corporate operations within a state were thought so substantial and of such a nature as to justify suit against it on causes of action arising from dealings entirely distinct from those activities”

5

6 Perkins v. Benguet Consolidated Mining (US 1952)

7 GOODYEAR DUNLOP TIRES OPERATIONS, S. A., v. EDGAR D. BROWN U.S. S.Ct. - June 27, 2011

8 DaimlerChrysler AG v. Bauman

9 Walden v. Fiore

10 “For an individual, the paradigm forum for the exercise of general jurisdiction is the individual’s domicile; for a corporation, it is an equivalent place, one in which the corporation is fairly regarded as at home.”

11 “category” jurisdiction - not specific because cause of action did not arise, even in part, in the forum state - not general because not arguing that any cause of action can be brought in forum state - only certain categories of actions

12 - The D Corp (a skateboard manufacturer) is incorporated and has all of its employees and factories in New York - it makes only one type of skateboard - 99% of its product are sold (through Amazon) in California - P (a domiciliary of California) was harmed by a defective P Corp. skateboard owned by a NC event organizer while P was competing in NC - The skateboard was sold to the organizer in NC - P sues the D Corp. in state court in CA – PJ?

13 distinguishing specific from general pj

14 Pedelahore v. Astropark, Inc., 745 F.2d 346 (5th Cir. 1984)

15 A Louisiana P is injuired in Astropark in Houston, Tex
A Louisiana P is injuired in Astropark in Houston, Tex. Astropark is a Delaware Corp., with its principal place of business in Texas. In considering whether Louisiana had general PJ over the defendant, the court said the following:   

16 The final and most difficult inquiry presented by this appeal is whether subjecting Astropark to in personam jurisdiction in Louisiana is constitutionally permissible under the operative facts. Upon close examination we conclude and hold that valid personal jurisdiction exists.

17 What are the minimum contacts between Astropark and the people and State of Louisiana? Pedelahore points to the following actions by Astropark:

18   (1) An advertising program aimed at Louisianians, including the distribution of brochures and thousands of radio and television spots, together with advertisements in local, national, and regional publications, all extolling the wonders of Astroworld and encouraging visitors to attend. (2) A ticket consignment agreement with all Louisiana travel agencies authorizing those agencies to sell Louisiana residents tickets to Astropark's facilities.  (3) The conducting of a three-day seminar in New Orleans in December 1982 by the Astropark Marketing Department, aimed, inter alia, at developing business from Louisiana for the Houston operation. (4) The appointment of a sales representative with Louisiana as her area of responsibility.  To these active steps by Astropark, Pedelahore adds the results of the efforts. During the years 1981, 1982 and 1983, Louisiana accounted for 10.3%, 9.7%, and 8.0%, respectively, of the total patronage at the amusement park. Only one state, Texas, accounted for more patrons.

19 specific jurisdiction

20

21 McGee v. Int’l Life Ins. Co. (US 1957)

22 Turning to this case we think it apparent that the Due Process Clause did not preclude the California court from entering a judgment binding on respondent. It is sufficient for purposes of due process that the suit was based on a contract which had substantial connection with that State. The contract was delivered in California, the premiums were mailed from there and the insured was a resident of that State when he died.

23 - D (a TX corp.) enters into an insurance contract with P (a TX domiciliary) in TX. - After paying some premiums, P moves to CA and continues paying the premiums from there. - PJ over D in CA for breach of the contract?

24 It cannot be denied that California has a manifest interest in providing effective means of redress for its residents when their insurers refuse to pay claims. These residents would be at a severe disadvantage if they were forced to follow the insurance company to a distant State in order to hold it legally accountable. When claims were small or moderate individual claimants frequently could not afford the cost of bringing an action in a foreign forum - thus in effect making the company judgment proof. Often the crucial witnesses - as here on the company's defense of suicide - will be found in the insured's locality. Of course there may be inconvenience to the insurer if it is held amenable to suit in California where it had this contract but certainly nothing which amounts to a denial of due process.

25 power v. convenience (or “McGee factors”)

26 - Californian calls Oregonian and offers him $100,000 if he performs work in Nevada. - The Oregonian has made no advertisements encouraging offers. - The Oregonian agrees. - The Californian sends the Oregonian $50,000 as a deposit. - The Oregonian performs the work. - The Californian thinks the work is sub-standard and refuses to give the Oregonian the other $50, Is there PJ in California state court for the Californian's suit against the Oregonian for return of the $50,000 deposit?

27 - Same as above. - Is there PJ in Oregon state court for the Oregonian's suit against the Californian for the remaining $50,000 under the contract?

28 Same as above. - Is there PJ in Nevada state court for the Californian's suit against the Oregonian? For the Oregonian's suit against the Californian?

29 Chung v. NANA Development Corp. 783 F.2d 1124 (4th Cir. 1986)

30 - Va. P goes to Alaska to buy reindeer horns from Alaska D
- Va. P goes to Alaska to buy reindeer horns from Alaska D. - Wants them to remain frozen. - Requests that the D ship some of them to him in Va. - When they arrive in Va. they are melted. - P sues D in federal court in Va. PJ?

31 Thompson v. Chrysler Motors Corp. 755 F.2d 1162 (5th Cir. 1985)

32 - Miss. P goes to Ala. D to buy car. - Returns with car to Miss
- Miss. P goes to Ala. D to buy car. - Returns with car to Miss. - Car has problems, P makes many phone calls to Ala. and returns a number of times to Ala. for repair. - Finally D ships a master cylinder to P in Miss. for use in repair there. - Cylinder is defective and accident occurs. - P sues D in Miss. state court. PJ?


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