Document: 355 U.S. 220 78 S.Ct. 199 2 L.Ed.2d 223 Lulu B. McGEE, Petitioner,v.INTERNATIONAL LIFE INSURANCE COMPANY. No. 50. Argued Nov. 20, 1957. Decided Dec. 16, Mr. Arthur J. Mandell, Houston, Tex., for the petitioner. Stanley Hornsby, Austin, respondent. Opinion of Court by Justice BLACK, announced DOUGLAS. 1 Petitioner, McGee, recovered a judgment in California state court against respondent, International Life Insurance Company, on contract insurance. Respondent was not served with process but registered mail at its principal place business Texas. The based jurisdiction statute which subjects foreign corporations to suit insurance contracts residents that State even though such cannot be within borders.1 Unable collect petitioner went Texas where she filed court. But courts refused enforce her holding it void under Fourteenth Amendment because service outside could give over 288 S.W.2d 579. Since case raised important questions, only other States have similar laws, we granted certiorari. 352 924, 77 239, 160. It is controverted if properly exercised respondent erred refusing full faith and credit. 28 U.S.C. § 1738, U.S.C.A. 1738. 3 material facts are relatively simple. In 1944, Lowell Franklin, resident California, purchased life policy from Empire Mutual an Arizona corporation. 1948 agreed assume obligations. then mailed reinsurance certificate Franklin offering insure him accordance terms he held Mutual. He accepted this offer time until his death 1950 paid premiums home respondent's office. Petitioner Franklin's mother, beneficiary policy. She sent proofs pay claiming had committed suicide. appears neither nor has ever any office or agent California. And so far as record before us shows, never solicited done apart involved here. 4 Pennoyer v. Neff, 95 714, 24 L.Ed. 565, Due Process Clause places some limit power enter binding judgments persons their boundaries. just line limitation falls been subject prolific controversy, particularly respect corporations. continuing evolution abandoned 'consent,' 'doing business,' 'presence' standard measuring extent judicial See Henderson, Position Foreign Corporations American Constitutional Law, c. V. More recently Shoe Co. Washington, 326 310, 66 154, 90 95, decided 'due requires order defendant personam, present territory forum, certain minimum contacts maintenance does offend 'traditional notions fair play substantial justice." Id., page 316, 158. 5 Looking back long history litigation trend clearly discernible toward expanding permissible scope nonresidents. part attributable fundamental transformation our national economy years. Today many commercial transactions touch two more may involve parties separated continent. With increasing nationalization commerce come great increase amount conducted across lines. At same modern transportation communication made much less burdensome party sued defend himself engages economic activity. 6 Turning think apparent did preclude entering sufficient purposes due connection State. Cf. Hess Pawloski, 274 352, 47 632, 71 1091; Henry L. Doherty & Goodman, 294 623, 55 553, 79 1097; 735, 565.2 delivered were there insured when died. denied manifest interest providing effective means redress insurers refuse claims. These would severe disadvantage they forced follow company distant hold legally accountable. When claims small moderate individual claimants freguently afford cost bringing action forum—thus effect making proof. Often crucial witnesses—as here company's defense suicide—will found insured's locality. Of course inconvenience insurer amenable certainly nothing amounts denial process. Travelers Health Ass'n Commonwealth Virginia ex rel. Corporation Comm., 339 643, 70 927, 94 1154. There no contention adequate notice prepare defenses appear. 7 became law 1949, after entered into agreement Mutual's obligation him. contends application existing improperly impairs contract. We believe devoid merit. remedial, purest sense term, enlarged impaired substantive rights obligations than provide forum whatever might given reasonable appear merits being notified suit. Under circumstances vested right Bernheimer Converse, 206 516, 27 755, 51 1163; National Surety Architectural Decorating Co., 226 276, 33 17, 57 221; Funkhouser Preston Inc., 290 163, 54 134, 243. 8 reversed cause remanded Civil Appeals Texas, First Supreme Judicial District, further proceedings inconsistent opinion. 9 ordered. 10 Judgment directions. 11 CHIEF JUSTICE took consideration decision case. Cal.Insurance Code, West's Anno. §§ 1610—1620. see Ace Grain Eagle Fire Ins. D.C., F.Supp. 784; Storey United 64 896; S. Howes Inc. W.P. Milling Okl., 277 P.2d 655; Compania de Astral, S.A. Boston Metals 205 Md. 237, 107 A.2d 357, 108 372, 49 A.L.R.2d 646, certiorari 348 943, 75 365, 99 738; Zacharakis Bunker Hill Mut. 281 App.Div. 487, 120 N.Y.S.2d 418; Smyth Twin Improvement 116 Vt. 569, 80 664, 25 1193.

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