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Facts
• D hired an attorney but then failed to pay him
○ Attorney filed suit in Oregon (D is not a resident of Oregon)
Neff was served process by printing in the paper => probably
didn’t see it
○ Trial court entered default judgment against D for not appearing
• D acquired land from federal government, lawyer demanded it be sold and
his fee paid
○ Sheriff sold the land to P
• D then sued P to reacquire the land
Procedural Posture
• Trial court found for Neff (non-resident) because of a technicality
○ Pennoyer sued
Issues:
1. Is constructive service by publication legal?
2. Does the state of Oregon have jurisdiction in personam over Neff?
3. Does the state of Oregon have jurisdiction in rem over Neff, or Neff’s stuff?
4. Was it appropriate to sell the property before it was attached (seized)?
5. If the first lawsuit cannot be upheld, does the sale of the property to
Pennoyer count?
Main Issue:
Was it legal for Oregon to register a judgment against Neff without personal service
of process?
Rules
1. A state has exclusive jurisdiction over people and property within its
borders.
2. No state can exercise jurisdiction over people or property in other states.
3. Judgments in personam without personal service of process shall not be
upheld.
4. Judgments in rem with only constructive service may be upheld.
5. The “Full Faith and Credit” clause of the Constitution only applies “when the
court rendering the judgment had jurisdiction of the parties and of the
subject-matter”.
Conclusion
The original verdict of Mitchell v. Neff was invalid because the state of Oregon did
not have jurisdiction in personam over Neff. Therefore, the judgment shouldn’t have
happened and the property should have never been sold. Consequently, the court
upheld the decision in Neff’s favor.
International Shoe Co. v. Washington 326 U.S. 310 (1945) pg. 75
Facts
• State of Washington sued International Shoe to recover unpaid contribution’s
to state unemployment fund
○ International Shoe did not have an office in Washington, but employed
11-13 salesmen there who conducted business on International Shoe’s
behalf
• When Washington sued the company, they served notice personally to one of
the salesman and mailed a notice to the company’s St. Louis headquarters
• Washington Supreme Court upheld the state’s right to sue
Issue
• Did International Shoe’s activities in Washington make it subject to personal
jurisdiction in Washington courts?
Holding
• Yes. Minimum contacts with the forum state can give a court in that state
personal jurisdiction over a party without violating the Due Process clause
Reasoning
• Test is subjective as to the minimum contacts requirement
○ Minimum contacts does not offend traditional notions of fair play and
substantial justice
• International Shoe had conducted “systematic and continuous” business in
Washington.
○ A large volume of interstate business for the defendant was created
through D’s agents in the state and D received the benefits and
protection of the state’s laws.
If you enjoy the protection of the laws of a state, you also have
the obligations
○ D had established agents in the state permanently.
• Quality and nature of the contacts is to be analyzed, not simply the quantity
○ There was sufficient notice of the suit
In personam jurisdiction: A court’s power to bring a person into its adjudicative
process
Jurisdiction over a defendant’s personal rights
Arguments for D
• They did not have minimum contacts with the state
○ Also, sequestration would allow possibility of decision without hearing
○ Property is unrelated to P’s cause of action
Arguments for P
• International Shoe does not apply because state is invoking in rem not in
personam jurisdiction
Holding
• D does not have minimum contacts with the state, statute violates Due
Process Clause
Reasoning
• International Shoe ‘minimum contacts test’ applies for in rem jurisdiction
○ If property had been real property, Delaware probably would have had
jurisdiction because they enjoyed the protection of Delaware’s law
○ But when property is simply incorporated in Delaware, they can’t be
expected to have any contacts
• Further, purposes of statute was simply to assure that they would appear
before the court
○ This does not seem to indicate that they tried to take into account the
contacts the people had with the state
Asahi Metal Industry Co v. Superior Court 480 U.S. 102 (1987) pg. 105
Facts and Procedural Posture
• Motorcycle tire blew out, man sued manufacturer for product liability in
California
• California court found that he could sue
○ Supreme Court reverses
Reasoning
• In order for minimum contacts to hold, D must purposefully direct an action
toward the forum state
○ Simply placing a product into the stream of commerce is not enough
• Must look at
○ Burden on D
○ Interest of forum state
○ P’s interest in obtaining relief
• In the current case, heavy burden on D, slight interest for both State and P
Burger King Corp. v. Rudzewicz 471 U.S. 462 (1985) pg. 111
• The defendant started a Burger King franchise.
○ Things went sour and Burger King sued in federal court in Florida to
terminate the franchise.
○ Rudzewicz challenged the court’s personal jurisdiction.
District court found for P, Circuit Court reversed, finding for D
• Supreme Court reverses, finds for Burger King
Reasoning
• Foresseability is that D’s conduct with forum State is such that he should
reasonably anticipated being haled into court there
○ D’s contract had substantial ties with state
Dissent
• D dealt primarily with Michigan office
○ Boilerplate language of contracts should not be enough to confer
jurisdiction
Pavlovich v. Superior Court 29 Cal. 4th 262, 58 P.3d 2 (2002) pg. 117
• D put links on website to circumvent source code
○ This source code was owned by company in California
• District Court held the company had jurisdiction
○ Appeals court reversed
• P’s arguments: D knew that positing the info. would harm California
companies
○ Court holds this not to be true » D had no idea it would hurt specific
California companies
Causation is too remote
• Court is quick to emphasize narrowness of decision
○ Knowledge alone is insufficient to establish express aiming at the
forum state, but it can be used as evidence of jurisdiction
○ Further, court says he could be sued in Indiana or Texas (potentially)
Dissent
• D knew that actions would hurt industries, regardless of where specifically
they were located
Coastal Video Communications Corp. v. The Staywell Corp (E.D. Va. 1999) pg.
126
• Example of a case asking for further evidence of the extent of contacts with
the forum state, on the theory that there might conceivably be enough for
general jurisdiction
Burnham v. Superior Court 495 U.S. 604 (1990)
Issue: Does the 14th Amendment deny California courts jurisdiction over a non
resident, personally served with process while temporarily in the State, in a suit
unrelated to his activities in the state?
Facts and Posture
• D was travelling in California to visit kids
○ Wife had filed for divorce in California, D served with summons while
there
○ D was resident of New Jersey
• California courts held that they had personal jurisdiction
○ Supreme Court affirms
Reasoning
• D tried to argue that he can only be served process for the purpose of his
visit in the state
○ Meaning his minimum contact had nothing to do with divorce so
California shouldn’t have personal jurisdiction
• Supreme Court holds that operative standard is whether traditional notions of
fair play and justice have been observed
○ It has always been the case the a state could exercise personal
jurisdiction over all those in the state for however short a time
Concurring Opinion
• D had availed himself to the benefits of California laws by visiting the state
○ Further, his burden is limited because he was already there
○ He could also file suit there as a plaintiff
Issue
Is notice given to out of state parties by publication in a newspaper, when the
parties’ addresses were known, constitutional in light of the Due Process Clause of
the 14th amendment?
D’s Arguments
• Statue’s authorization of notification only by statute was unconstitutional
under 14th Amendment
○ Fundamental requisite of 14th Amendment was right to be heard
Holding
The newspaper notice is incompatible with the requirements of the 14th Amendment
as a basis for adjudication depriving known persons whose whereabouts are also
known of substantial property rights
Reasoning
• Notice must be reasonably calculated, under all circumstances, to apprise
interested parties of the pendency of the action
○ Also gives them opportunity to present their objections
• In regards to people whose whereabouts are unknown, court holds that
newspaper notification will suffice
○ It is unreasonable to expect Trustee to hunt down everybody
• In regards to people whose addresses are known, company has a duty to
inform them
○ Even notifying a few of the people would satisfy requirement
○ Their interest in the interest of the whole group, so they would object
Notification must be reasonably calculated to reach those who
have an interest in it