ILNews

Editorial: Personal jurisdiction theories still evolving

Back to TopCommentsE-mailPrintBookmark and Share

Federal Bar UpdateAs most litigators know, in Asahi Metal v. Superior Court of Cal., 480 U.S. 102 (1987), a plurality of the Supreme Court embraced the stream-of-commerce theory of personal jurisdiction, which generally holds that if a manufacturer or distributor has sufficient knowledge and control of its distribution system, it can be sued in a state in which its products cause injury. Since Asahi Metal, the theory has evolved somewhat in federal and state appellate courts but had not been revisited by the Supreme Court.

At the end of its recent term, the Supreme Court decided J. McIntyre Machiner v. Nicastro, No. 09-1343 (June 27, 2011), and by a 6-3 vote the court held that personal jurisdiction did not exist in this particular products-liability case. Unfortunately the court did not have a majority opinion on the applicable rule of law to be applied in these situations, with four justices proclaiming one rule, two another, and three yet another. What is certain is that for anyone with a personal jurisdiction battle, there is something for everyone in J. McIntyre, and the stream-of-commerce theory remains unsettled at best.

In the meantime, a brief summary follows. Plaintiff was injured in New Jersey using a metal-shearing machine manufactured by defendant in England, where the company is incorporated and based. Plaintiff sued in New Jersey, and the New Jersey Supreme Court held that personal jurisdiction existed under the Asahi stream-of-commerce concept.

The U.S. Supreme Court disagreed, reversing. Justice Anthony Kennedy, joined by the chief justice and Justices Antonin Scalia and Clarence Thomas, concluded that because defendant never engaged in any activities in New Jersey that revealed an intent to invoke or benefit from New Jersey’s laws, New Jersey was without power to adjudge the company’s rights and liabilities. This foursome reasoned that Asahi and stream-of-commerce metaphors do not change fundamental 14th Amendment due process standards for personal jurisdiction. The principal inquiry, they proclaimed, is whether defendant’s activities manifest an intention to submit to the power of a sovereign.

Justices Stephen Breyer and Samuel Alito agreed in a concurrence that personal jurisdiction did not exist, but found it unwise to announce a rule of broad applicability given that the case did not present issues arising from recent advances in commerce and communications. In dissent, Justices Ruth Bader Ginsburg, Sonia Sotomayor, and Elena Kagan would affirm the New Jersey Supreme Court’s ruling that personal jurisdiction existed.

7th Circuit rule change

Effective May 1, 7th Circuit Rule 25 was added requiring all documents to be electronically filed. 7th Circuit Rule 27 was added to address emergency filings. Finally, Circuit Rule 31(e) was rescinded. All 7th Circuit rules are available at www.ca7.uscourts.gov.

Mark your calendars

The annual Federal Civil Practice Seminar will be held Friday, Dec. 16, in Indianapolis.

Special call-out to help a family of the Bar

Jay Ruckelshaus, son of John Ruckelshaus of Baker & Daniels and grandson of long-time attorney Jack Ruckelshaus of Ruckelshaus Kautzman Blackwell Bemis & Hasbrook, was seriously injured recently in a diving accident. He has a severe spinal cord injury and is being treated at Methodist Hospital in Indianapolis. Jay is a remarkable young man who recently graduated as valedictorian of Cathedral High and was on his way to Duke as an Honors admittee.

Jay will face a long road ahead with many challenges, and likely uncovered expenses for some adaptive equipment and rehabilitation. At the request of Jay’s fellow graduates, the Joseph Maley Foundation is honored to dedicate its upcoming annual golf outing, Aug. 10 in Indianapolis, to celebrate Jay’s many accomplishments and provide support for Jay. For information, please see www.josephmaley.org.•

__________

John Maley – jmaley@btlaw.com – is a partner with Barnes & Thornburg, practicing federal and state litigation, employment matters, and appeals. The opinions expressed are those of the author.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. From back in the day before secularism got a stranglehold on Hoosier jurists comes this great excerpt via Indiana federal court judge Allan Sharp, dedicated to those many Indiana government attorneys (with whom I have dealt) who count the law as a mere tool, an optional tool that is not to be used when political correctness compels a more acceptable result than merely following the path that the law directs: ALLEN SHARP, District Judge. I. In a scene following a visit by Henry VIII to the home of Sir Thomas More, playwriter Robert Bolt puts the following words into the mouths of his characters: Margaret: Father, that man's bad. MORE: There is no law against that. ROPER: There is! God's law! MORE: Then God can arrest him. ROPER: Sophistication upon sophistication! MORE: No, sheer simplicity. The law, Roper, the law. I know what's legal not what's right. And I'll stick to what's legal. ROPER: Then you set man's law above God's! MORE: No, far below; but let me draw your attention to a fact I'm not God. The currents and eddies of right and wrong, which you find such plain sailing, I can't navigate. I'm no voyager. But in the thickets of law, oh, there I'm a forester. I doubt if there's a man alive who could follow me there, thank God... ALICE: (Exasperated, pointing after Rich) While you talk, he's gone! MORE: And go he should, if he was the Devil himself, until he broke the law! ROPER: So now you'd give the Devil benefit of law! MORE: Yes. What would you do? Cut a great road through the law to get after the Devil? ROPER: I'd cut down every law in England to do that! MORE: (Roused and excited) Oh? (Advances on Roper) And when the last law was down, and the Devil turned round on you where would you hide, Roper, the laws being flat? (He leaves *1257 him) This country's planted thick with laws from coast to coast man's laws, not God's and if you cut them down and you're just the man to do it d'you really think you would stand upright in the winds that would blow then? (Quietly) Yes, I'd give the Devil benefit of law, for my own safety's sake. ROPER: I have long suspected this; this is the golden calf; the law's your god. MORE: (Wearily) Oh, Roper, you're a fool, God's my god... (Rather bitterly) But I find him rather too (Very bitterly) subtle... I don't know where he is nor what he wants. ROPER: My God wants service, to the end and unremitting; nothing else! MORE: (Dryly) Are you sure that's God! He sounds like Moloch. But indeed it may be God And whoever hunts for me, Roper, God or Devil, will find me hiding in the thickets of the law! And I'll hide my daughter with me! Not hoist her up the mainmast of your seagoing principles! They put about too nimbly! (Exit More. They all look after him). Pgs. 65-67, A MAN FOR ALL SEASONS A Play in Two Acts, Robert Bolt, Random House, New York, 1960. Linley E. Pearson, Atty. Gen. of Indiana, Indianapolis, for defendants. Childs v. Duckworth, 509 F. Supp. 1254, 1256 (N.D. Ind. 1981) aff'd, 705 F.2d 915 (7th Cir. 1983)

  2. "Meanwhile small- and mid-size firms are getting squeezed and likely will not survive unless they become a boutique firm." I've been a business attorney in small, and now mid-size firm for over 30 years, and for over 30 years legal consultants have been preaching this exact same mantra of impending doom for small and mid-sized firms -- verbatim. This claim apparently helps them gin up merger opportunities from smaller firms who become convinced that they need to become larger overnight. The claim that large corporations are interested in cost-saving and efficiency has likewise been preached for decades, and is likewise bunk. If large corporations had any real interest in saving money they wouldn't use large law firms whose rates are substantially higher than those of high-quality mid-sized firms.

  3. The family is the foundation of all human government. That is the Grand Design. Modern governments throw off this Design and make bureaucratic war against the family, as does Hollywood and cultural elitists such as third wave feminists. Since WWII we have been on a ship of fools that way, with both the elite and government and their social engineering hacks relentlessly attacking the very foundation of social order. And their success? See it in the streets of Fergusson, on the food stamp doles (mostly broken families)and in the above article. Reject the Grand Design for true social function, enter the Glorious State to manage social dysfunction. Our Brave New World will be a prison camp, and we will welcome it as the only way to manage given the anarchy without it.

  4. When I hear 'Juvenile Lawyer' I think of an attorney helping a high school aged kid through the court system for a poor decision; like smashing mailboxes. Thank you for opening up my eyes to the bigger picture of the need for juvenile attorneys. It made me sad, but also fascinated, when it was explained, in the sixth paragraph, that parents making poor decisions (such as drug abuse) can cause situations where children need legal representation and aid from a lawyer.

  5. Some in the Hoosier legal elite consider this prayer recommended by the AG seditious, not to mention the Saint who pledged loyalty to God over King and went to the axe for so doing: "Thomas More, counselor of law and statesman of integrity, merry martyr and most human of saints: Pray that, for the glory of God and in the pursuit of His justice, I may be trustworthy with confidences, keen in study, accurate in analysis, correct in conclusion, able in argument, loyal to clients, honest with all, courteous to adversaries, ever attentive to conscience. Sit with me at my desk and listen with me to my clients' tales. Read with me in my library and stand always beside me so that today I shall not, to win a point, lose my soul. Pray that my family may find in me what yours found in you: friendship and courage, cheerfulness and charity, diligence in duties, counsel in adversity, patience in pain—their good servant, and God's first. Amen."

ADVERTISEMENT