Civil Procedure II Outline
Personal Jurisdiction is the courts power to adjudicate the rights and liabilities of a defendant.
· Court always has personal jurisdiction over its residents or over persons that were served in the state.
Long Arm Statute
· States use long-arm statute to assert personal jurisdiction.
· Every federal court uses the long arm statute of the state in which it sits.
Russell v. SNFA
· First determine whether a specific statutory provision of section 2-209 has been satisfied, and
· Then determine whether the due process requirements of the United States and Illinois Constitutions have been met.
o Two-part analysis is not necessary if subsection (c) of the long-arm statute is invoked.
§ Subsection (c) is the “catch-all provision.”
· Leads to the single issue of whether a defendant’s Illinois contacts are sufficient to satisfy federal and Illinois due process.
Due Process Analysis
· Illinois collapses into the federal due process analysis because the Illinois courts see no meaningful difference.
· Fourteenth Amendment (and Fifth Amendment)
o Due Process Clause
§ Will not deprive any person of life, liberty, or property, without due process of law.
Pennoyer v. Neff
· A state only has jurisdiction within a state’s territory.
· Principles and Rules from Pennoyer
o Jurisdiction and Due Process
o Due process and full faith and credit
o The service of process rule
o The service by publication rule
o The limited jurisdiction rule
o The pre-judgment attachment rule
Minimum Contacts (analyze sliding scale and then fairness)
· A state may establish personal jurisdiction over a defendant if she has such minimum contacts with the state.
· The maintenance of the suit does not offend traditional notions of “fair play and substantial justice.”
· Depends on
o Quality and nature of the contacts with the state
o Even a single contact will do, but not contacts that are casual or isolated.
· The defendant who deliberately chooses to take advantage of the benefits and protections of the laws of a state will not be heard to cry foul when that state holds her to accounts in its courts for her in state acts.
Three types of personal jurisdiction
· In personam
o Trying to assert jurisdiction over out of state of defendant.
· In rem
o Suit against a property.
· Quasi in rem
o Somewhat against the property.
Shaffer v. Heitner
· Greyhound case where minimum contacts were not satisfied with managers and directors ownership of stock.
· Defendants did not have anything to do with the state (forum) and the state did not enact a statute that treats acceptance of directorship as consent to jurisdiction in a state.
· Man lives in California, buys insurance from a Texas company.
· Payments and all correspondence through the mail established the insurance company’s minimum contacts with California.
· It is sufficient for purposes of due process that the suit was based on a contract which had substantial connection with that state.
o The contract was delivered in California, the premiums mailed from there and the insured was a resident of that state when he died.
· When the insurance company decided to contract with California residents they put themselves on notice and had sufficient time to prepare their defenses.
· Contract theory was introduced with the increased nationalization of commerce and increased business across state lines.
Hanson v. Denckla
· Woman sets up trust in Delaware and retires in Florida.
· Estate goes into probate in Florida and Florida tried to assert jurisdiction over the trust.
· However minimal the burden of defending in a foreign tribunal, a defendant may not be called upon to do so unless he has the minimum contacts with that state.
· The unilateral activities of those who claim some relationship with a non-resident defendant cannot satisfy the requirement with the forum state.
· Purposeful Availment
o Defendant purposefully availed itself of the privilege of conducting activities in the forum state, thus invoking the benefits and protections of the for
· Appraisal of a corporation’s activities in their entirety, nationwide and worldwide.
o Must be “continuous and substantial presence.”
· When corporation’s affiliations with the state are so continuous and systematic as to render them essentially at home in the forum state. Goodyear
· Stream-of-commerce theory does not apply to general jurisdiction (may apply to specific jurisdiction).
· Continuous activity is not enough.
· Cannot simply be transitory physical presence.
· Corporation, generally, not accountable of their subsidiaries under an agency theory.
The Service of Process
Burnham v. Superior Court
· Husband gets served papers while visiting children in Calfiornia.
· Use the traditional notions and use presence in place of minimum contacts to establish jurisdiction based on physical presence in that forum state.
o Even if the presence is transitory.
· If defendant is fraudulently induced to enter the forum, the service is not valid.
Consent (as a Substitute for Power)
· A defendant may, either at the outset of the lawsuit itself or before it, consent to jurisdiction in a forum.
· Rule 12(h)(1)
o A party with a potential defense based on personal jurisdiction waives that defense by failing to assert it at an early stage of litigation.
§ Either as a pre-answer motion or in the answer.
Carnival Cruise v. Schute
· Forum selection clauses in a contract of adhesion are subject to judicial scrutiny for fundamental fairness.
§ Look to fraud or overreaching
§ Reasonableness of the forum choice [does it deprive an individual of their day in court?] § Look for sufficient notice and consent