Minimum contacts
Encyclopedia
Minimum contacts is a term used in the United States
law
of civil procedure
to determine when it is appropriate for a court
in one state
to assert personal jurisdiction over a defendant
from another state. The United States Supreme Court has decided a number of cases that have established and refined the principle that it is unfair for a court to assert jurisdiction over a party unless that party's contacts with the state in which that court sits are such that the party "could reasonably expect to be haled into court" in that state. This jurisdiction must "not offend traditional notions of fair play and substantial justice".
, agreeing to litigate in a specified forum.
Under the Federal Rules of Civil Procedure
, a party who wishes to object to the court's assertion of personal jurisdiction must do so at the beginning of legal proceedings, or lose the ability to raise such an objection. Furthermore, a court may request that a party provide evidence
that its contacts do not rise to the level which would allow the court to have jurisdiction. The Supreme Court has held that if a party refuses to comply with such a request, the court can deem them to have waived their right to object to jurisdiction.
For example, if a Florida
orange grower were to breach a promise to deliver a bushel of oranges to a buyer in Alabama
, the breach of that agreement would be sufficient for Alabama courts to assert specific jurisdiction, even if the Florida grower had no other contacts with Alabama, and had never even set foot there. The lone contact of a promise to deliver something to a state is enough to give the state jurisdiction over disputes arising from the breach of that promise. On the other hand, if one were to sue the Florida orange grower in Alabama for some matter other than that contract, the court would have to determine whether it could exercise general jurisdiction.
In Helicopteros Nacionales De Colombia v. Hall, a helicopter
crash caused the death of four Americans in Peru
. The Supreme Court found that the state of Texas
could not assert general personal jurisdiction over the defendant company that had negotiated the purchase of helicopters and trained its pilots in Texas, because its activities in that forum were not of a continuous and systematic nature. The U.S. Supreme Court has only found general jurisdiction in one case to date, Perkins v. Benguet Mining Co., though it is routinely found at lower levels.
(formal notification that they are being sued) while physically present in a state is properly subject to personal jurisdiction in that state. The justification for the rule is uncertain. In Burnham v. Superior Court of California, the Court unanimously agreed that this rule was still effective, but split as to the rationale. Justice Scalia wrote for four justices who felt that the rule should apply simply because it was a continuation of a longstanding tradition. Justice Brennan
wrote for four justices who felt that the rule should apply because the party was purposefully availing himself of the benefits of being in the state at that time, and that the rule was fair under modern standards because it was well known, therefore putting defendants on notice of their susceptibility to suit in a state if physically present. The ninth vote, by Justice Stevens, agreed that jurisdiction was proper, but did not endorse either Scalia's or Brennan's test.
Claims arising from the tort
of defamation are treated by a different standard.
as a source of minimum contacts. Although not determinately established by the Supreme Court, many courts use the Zippo test, which examines the kind of use to which a defendant's website is being put. Under this test, websites are divided into three categories:
The U.S. Congress has enacted legislation which declares internet domain names to be property for the purposes of such jurisdiction. Therefore, when a webpage infringes a trademark
, the owner of the trademark can sue in any jurisdiction where the webpage can be viewed - but only for the remedy of transferring ownership of the webpage to the trademark-holder.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
of civil procedure
Civil procedure
Civil procedure is the body of law that sets out the rules and standards that courts follow when adjudicating civil lawsuits...
to determine when it is appropriate for a court
Court
A court is a form of tribunal, often a governmental institution, with the authority to adjudicate legal disputes between parties and carry out the administration of justice in civil, criminal, and administrative matters in accordance with the rule of law...
in one state
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
to assert personal jurisdiction over a defendant
Defendant
A defendant or defender is any party who is required to answer the complaint of a plaintiff or pursuer in a civil lawsuit before a court, or any party who has been formally charged or accused of violating a criminal statute...
from another state. The United States Supreme Court has decided a number of cases that have established and refined the principle that it is unfair for a court to assert jurisdiction over a party unless that party's contacts with the state in which that court sits are such that the party "could reasonably expect to be haled into court" in that state. This jurisdiction must "not offend traditional notions of fair play and substantial justice".
Consent and waiver
Because the need for minimum contacts is a matter of personal jurisdiction (the power of the court to hear the claim with respect to a particular party) instead of subject matter jurisdiction (the power of the court to hear this kind of claim at all), a party can explicitly or implicitly waive their right to object to the court hearing the case. Minimum contacts can be established by consent where a party signs a contract with a forum selection clauseForum selection clause
A forum selection clause in a contract with a conflict of laws element allows the parties to agree that any litigation resulting from that contract will be initiated in a specific forum...
, agreeing to litigate in a specified forum.
Under the Federal Rules of Civil Procedure
Federal Rules of Civil Procedure
The Federal Rules of Civil Procedure govern civil procedure in United States district courts. The FRCP are promulgated by the United States Supreme Court pursuant to the Rules Enabling Act, and then the United States Congress has 7 months to veto the rules promulgated or they become part of the...
, a party who wishes to object to the court's assertion of personal jurisdiction must do so at the beginning of legal proceedings, or lose the ability to raise such an objection. Furthermore, a court may request that a party provide evidence
Evidence (law)
The law of evidence encompasses the rules and legal principles that govern the proof of facts in a legal proceeding. These rules determine what evidence can be considered by the trier of fact in reaching its decision and, sometimes, the weight that may be given to that evidence...
that its contacts do not rise to the level which would allow the court to have jurisdiction. The Supreme Court has held that if a party refuses to comply with such a request, the court can deem them to have waived their right to object to jurisdiction.
Activities as a basis for jurisdiction
A party's activities within a state can provide the basis for that state to have jurisdiction over that party. The Supreme Court has held that the state can properly assert jurisdiction based on a party's "purposeful availment of the benefits and protections" offered by a state.General vs. specific jurisdiction
The necessary contacts that a party must have for a state to assert personal jurisdiction may vary depending on the relationship between the contacts and the claim brought against that party. General jurisdiction exists where a court in a given state has jurisdiction over a defendant in that state irrespective of the nature of the claim; but if the state is alleged to have jurisdiction over a defendant because the defendant's activities in that state gave rise to the claim itself, this would be specific jurisdiction.For example, if a Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
orange grower were to breach a promise to deliver a bushel of oranges to a buyer in Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
, the breach of that agreement would be sufficient for Alabama courts to assert specific jurisdiction, even if the Florida grower had no other contacts with Alabama, and had never even set foot there. The lone contact of a promise to deliver something to a state is enough to give the state jurisdiction over disputes arising from the breach of that promise. On the other hand, if one were to sue the Florida orange grower in Alabama for some matter other than that contract, the court would have to determine whether it could exercise general jurisdiction.
In Helicopteros Nacionales De Colombia v. Hall, a helicopter
Helicopter
A helicopter is a type of rotorcraft in which lift and thrust are supplied by one or more engine-driven rotors. This allows the helicopter to take off and land vertically, to hover, and to fly forwards, backwards, and laterally...
crash caused the death of four Americans in Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
. The Supreme Court found that the state of Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
could not assert general personal jurisdiction over the defendant company that had negotiated the purchase of helicopters and trained its pilots in Texas, because its activities in that forum were not of a continuous and systematic nature. The U.S. Supreme Court has only found general jurisdiction in one case to date, Perkins v. Benguet Mining Co., though it is routinely found at lower levels.
Presence
A party who receives service of processService of process
Service of process is the procedure employed to give legal notice to a person of a court or administrative body's exercise of its jurisdiction over that person so as to enable that person to respond to the proceeding before the court, body or other tribunal...
(formal notification that they are being sued) while physically present in a state is properly subject to personal jurisdiction in that state. The justification for the rule is uncertain. In Burnham v. Superior Court of California, the Court unanimously agreed that this rule was still effective, but split as to the rationale. Justice Scalia wrote for four justices who felt that the rule should apply simply because it was a continuation of a longstanding tradition. Justice Brennan
William J. Brennan, Jr.
William Joseph Brennan, Jr. was an American jurist who served as an Associate Justice of the United States Supreme Court from 1956 to 1990...
wrote for four justices who felt that the rule should apply because the party was purposefully availing himself of the benefits of being in the state at that time, and that the rule was fair under modern standards because it was well known, therefore putting defendants on notice of their susceptibility to suit in a state if physically present. The ninth vote, by Justice Stevens, agreed that jurisdiction was proper, but did not endorse either Scalia's or Brennan's test.
Commercial activities
Merely placing products in the "stream of commerce" is insufficient to provide minimum contacts with the states where the products end up. The defendant must make an effort to market in the forum state or otherwise purposefully avail himself of the resources of that state. However, since only four of the nine Supreme Court Justices joined the opinion that required a defendant to do more than place his products in a "stream of commerce," some lower courts still rule that doing so is adequate for a court to exercise personal jurisdiction.Claims arising from the tort
Tort
A tort, in common law jurisdictions, is a wrong that involves a breach of a civil duty owed to someone else. It is differentiated from a crime, which involves a breach of a duty owed to society in general...
of defamation are treated by a different standard.
Internet activities
Courts have struggled with the InternetInternet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
as a source of minimum contacts. Although not determinately established by the Supreme Court, many courts use the Zippo test, which examines the kind of use to which a defendant's website is being put. Under this test, websites are divided into three categories:
- passive websites, which merely provide information, will almost never provide sufficient contacts for jurisdiction. Such a website will only provide a basis for jurisdiction if the website itself constitutes an intentional tortTortA tort, in common law jurisdictions, is a wrong that involves a breach of a civil duty owed to someone else. It is differentiated from a crime, which involves a breach of a duty owed to society in general...
such as slander or defamation, and if it is directed at the jurisdiction in question; - interactive websites, which permit the exchange of information between website owner and visitors, may be enough for jurisdiction, depending on the website's level of interactivity and commerciality, and the amount of contacts which the website owner has developed with the forum due to the presence of the website;
- commercial websites which clearly do a substantial volume of business over the Internet, and through which customers in any location can immediately engage in business with the website owner, definitely provide a basis for jurisdiction.
Property as a basis for jurisdiction
The Supreme Court has held that the mere fact of ownership of property within a state is not sufficient to provide minimum contacts for a court to hear cases unrelated to that property. However, the property alone provides a sufficient contact for a court having jurisdiction over that geographic area to adjudicate claims relating to the ownership of the property, or relating to injuries which occurred there. In that case, the jurisdiction exercised by the court is referred to in rem jurisdiction (i.e. jurisdiction over the thing), instead of in personam jurisdiction.The U.S. Congress has enacted legislation which declares internet domain names to be property for the purposes of such jurisdiction. Therefore, when a webpage infringes a trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...
, the owner of the trademark can sue in any jurisdiction where the webpage can be viewed - but only for the remedy of transferring ownership of the webpage to the trademark-holder.