I. Personal Jurisdiction Overview
A. No Federal Statute governing Personal Jurisdiction
B. State "Long-Arm" Statutes
C. Common Law
1. Elements
a. Minimum Contacts - forum state
1. Quantity of defendant contacts
2. Nature and Quality of defendant contacts
3. Connection between cause of action and defendant's
contacts
4. State’s
interest in providing a forum
5. Convenience of the parties
b. Maintenance of suit does not offend traditional notions of fair play and substantial justice
c. Some act by which the defendant purposely avails
itself of the privilege of conducting activities within the
forum state thus invoking the benefits and protection of its laws.
2. Stream of Commerce
a. The foreseeability that is critical to due process
analysis is not the mere likelihood that a product will find its way
into the forum state. Rather, it is that the defendant's conduct and connection
with the forum state are such that
he should reasonably anticipate being haled into court there. ... The forum
state does not exceed its powers
under the Due Process Clause if it asserts personal jurisdiction over a
corporation that delivers its products into
the stream of commerce with the expectation that they will be purchased
by consumers in the forum state.
b. Examples
1. Thompson - pornographic pictures created
in CA but downloaded in TN
2. Playmen - Pornographic site in Italy that can be accessed
by U.S. residents
D. Sliding Scale
1. Active Sites
a. CompuServe, Inc. v. Patterson(6th Cir. 1996),
found that actively using the Internet to contract and solicit
business subjects the defendant to personal jurisdiction in the purchaser's
state.
b. At this end exists the Internet commerce (or "E-commerce")
merchant that subjects itself to personal jurisdiction
because it contracts and solicits business over the Internet
c. Examples
1. "Wager net" - State v. Granite Gate Resorts, Inc.
Gambling in Minnesota
2. "Vitalium"
Selling substance over the Internet - recruiting sales people
2. Passive Sites
a. Bensusan Restaurant Corp. v. King (2d Cir.
1997) refused to find personal jurisdiction in a situation involving a
passive, i.e., a purely informative and non-solicitous, Web site.
b. At this end is the party who operates the completely
passive, informational Web site, and therefore does not
subject itself to personal jurisdiction.
c. Reluctance to grant worldwide jurisdiction simply by virtue of having a web site.
3. Middle Ground
a. Where the party does not necessarily contract over
the Internet, but its Web site is also not purely informational.
Jurisdiction may or may not be appropriate in this instance, requiring
a closer review of the facts to see if "plus
factors" exist that "indicate that the defendant purposefully (albeit electronically)
directed his activity in a
substantial way to the forum state," thereby making jurisdiction proper.
1. Ads in National Magazine not enough for jurisdiction
2. Hearst v. Esqwire
Site to provide Law Mgt Advice - Esq.wire
b. Posting of 800 Numbers
1. Simply lists a toll-free number, courts do not usually
grant personal jurisdiction.
2. However, if the purpose of the site and toll-free
number is to solicit business, jurisdiction may be appropriate.
c. E-Mail
1. Web sites that allow users to contact a business or
individual via E-mail alone probably will not confer
jurisdiction.
2. Routine use may suffice to find jurisdiction in the
same way that frequently sending or receiving regular mail
from a state leads to jurisdiction.
3. Volume
If the number of E-mails sent to a party is considerable, the court may
find jurisdiction: one E-mail message is
probably not sufficient, but 15 may be.
4. Example: Hall v. Laronde
d. AHits@
1. Some courts consider the number of times a state's
residents actually access a Web site. This is problematic.
e. Difficult for the Web site owner to know the origin
of the person accessing the site
1. Actual v. Potential Users
a. Maritz, Inc. v. Cybergold, Inc., found jurisdiction
proper because 131 Missourians had actually accessed
the defendant's Web site.
b. Inset Systems granted jurisdiction partly because
10,000 users in Connecticut could potentially access
the site.