Professional Documents
Culture Documents
Personal Jurisdiction
Whether due process has been satisfied depends 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.
To subject a nonresident defendant to in personam jurisdiction, there must be
certain minimum contacts with the forum such that the maintenance of the suit
does not offend traditional notions of fair play and substantial justice. Reciprocity
is the basis of the minimum contacts standard.
o A state cannot make a binding judgment in personam against an individual
or corporate defendant with, which the state has no contacts, ties, or
relations.
Reasoning:
Appellant rendered itself amenable to suit upon obligations arising out of the
activities of its salesmen in Washington, and the state is entitled to present suit in
personam to collect the tax laid upon the exercise of the privilege of employing
appellants salesmen within the state.
The terms presence and present are used to symbolize the activities of the
corporations agent within the state, which courts will deem to be sufficient to
satisfy the demands of due process.
The court introduced the concept of specific jurisdiction stating that appellants
presence within the state was not only continuous and systematic but also give
rise to the liabilities sued upon.
The court introduced the concept of general jurisdiction, stating that continuous
corporate activities in a state can be so substantial and of such a nature as to
justify jurisdiction where a suit arises from dealings entirely distinct from the
activities.
Also, jurisdiction exists when corporate activities rise to the level sufficient to
satisfy due process. The nature and quality and circumstances of the corporation
may be deemed sufficient to render the corporation liable to suit.
It is also relevant to note the approx. estimate of the inconveniences, which would
result to the corporation from a trial away from its home or principle place of
business.
The court also noted that by a corporations taking advantage of the privileges of
conducting activities within a state, it is not unreasonable for the state to impose
a reciprocity clause for the corporation taking advantage of those privileges, thus
obligated the corporation to appear.
The more closely related the defendants contacts are to the claim, the fewer
contacts are required to comport with substantial justice and fair play.
Holding:
Affirmed.