Document: 486 U.S. 888 108 S.Ct. 2218 100 L.Ed.2d 896 BENDIX AUTOLITE CORP.v.MIDWESCO ENTERPRISES, INC., et al. No. 87-367. Argued March 23, 1988. Decided June 17, Syllabus In 1974, appellant, a Delaware corporation with its principal place of business in Ohio, and appellee Midwesco Enterprises (appellee), an Illinois Illinois, entered into contract for appellee's delivery installation boiler system at appellant's Ohio facility. After dispute arose, appellant filed this diversity action the Northern District 1980. When asserted statute limitations as defense, responded that period had not elapsed because under running time is tolled claims against corporations are present State have designated agent service process. The Court dismissed action, finding tolling constituted impermissible burden on interstate commerce violation Commerce Clause. Appeals affirmed. Held: violates Clause, since it imposes commerce. To gain protection period, appellee—which has no corporate office registered to do there—would appoint resident process subject itself courts' general jurisdiction. Ohio's statutory scheme thus forces foreign choose between exposure jurisdiction courts or forfeiture remaining suit perpetuity. Although defenses fundamental right, they integral part legal relied upon project liabilities persons active commercial sphere. Such may be withdrawn from out-of-state conditions repugnant ability execute important factor consider assessing local interest subjecting entities requirements more onerous than those imposed domestic parties. However, cannot justify means protecting residents who become liable acts done within but later withdraw jurisdiction, parties concede long-arm would permitted throughout limitations. Moreover, suggestion simple alternatives designating tendering agency appointment Secretary persuasive. Appellant's argument unconstitutional should applied prospectively only, case, will considered by Court, was presented below. Pp. 891-895. 820 F.2d 186, KENNEDY, J., delivered opinion which BRENNAN, WHITE, MARSHALL, BLACKMUN, STEVENS, O'CONNOR, JJ., joined. SCALIA, concurring judgment, post, p. 895. REHNQUIST, C.J., dissenting opinion, 898. Noel C. Crowley, Southfield, Mich., appellant. Ira J. Bornstein, Chicago, Ill., appellee. Justice KENNEDY Court. 1 recognizes 4-year actions breach fraud. tolled, however, any person "present" State. must process, operates consent courts. Applying well-settled constitutional principles, we find suspends 2 * Underlying question rules rather ordinary dispute. Enterprises, Inc., agreed Bendix Autolite Corporation deliver install facility Fostoria, Ohio. Dissatisfied work, claimed been installed improperly insufficient produce quantity steam specified contract. This United States Ohio; Illinois. 3 law suspended, process.1 replied provision violated both Clause Due Process Fourteenth Amendment. 4 Sixth Circuit affirmed, discrimination required " 'exposing personal [state] complying statute, or, refusing comply, remain perpetuity all lawsuits containing state causes [the State].' 188 (1987) (quoting McKinley v. Combustion Engineering, 575 F.Supp. 942, 945 (Idaho 1983)). rejected could appointed either giving notice appealed, noted probable review constitutionality statute. 484 923, 283, 98 244 (1987). We now affirm. II 5 Where regulation falls commerce, restricting flow manner applicable trade, there renders invalid without more, cause weigh assess State's putative interests restraints determine if unreasonable one. See Brown-Forman Distillers Corp. New York Liquor Authority, 476 573, 578-579, 106 2080, 2084-2085, 90 552 (1986). before us might held invalidates extended inquiry. choose, State, demonstrate legitimate sphere much advanced while substantial restraints. exceeds advance. 6 places significant. there, courts.2 extend Midwesco, whether transaction connection designation subjects matters tenuous relation otherwise extend. Cf. World-Wide Volkswagen Woodson, 444 286, 559, 62 490 (1980). Requiring cases defend reference transactions, including did minimum contacts necessary supporting significant burden. Asahi Metal Industry Co. Superior 480 102, 114, 107 1026, 1033, 94 92 7 Chase Securities Donaldson, 325 304, 314, 65 1137, 1142, 89 L.Ed. 1628 (1945), obvious such denies like privileges engaged reviewed denial discriminatory face condition exercise defense waiver relinquishment rights retain. Dahnke-Walker Milling Bondurant, 257 282, 42 106, 66 239 (1921); Allenberg Cotton Pittman, 419 20, 95 260, 195 (1974). 8 It true serving defendants arduous service, equal purposes rationally make adjustments difference curtailing absent corporations. G.D. Searle & Cohn, 455 404, 102 71 250 (1982). Nevertheless, due withstand scrutiny.3 9 particular case us, fall conceded only themselves greater companies does companies, activities inconsistent regulations. CTS Dynamics America, 481 69, 87-89, 1637, 1648-1649, 67 10 Initially, support option, speculative device satisfied continued period. event, likely subjected over transactions interest. As already concluded, exaction 11 Finally, argues unconstitutional, our ruling case. Chevron Oil Huson, 404 97, 349, 355, 30 296 (1971); Pipeline Construction Marathon Pipe Line Co., 458 50, 88, 2858, 2880, 73 598 refused raised first Bendix's reply brief. F.2d, 189. below, here. Brown Socialist Workers '74 Campaign Committee, 459 87, 104-105, 103 416, 426-427, 74 (1982) (BLACKMUN, part). 12 Affirmed. 13 judgment. 14 I confidently Court's evaluation balancing right wrong. labels effect "a burden" am sure why is. precise terms, defending (rather some other forum) lawsuit having following features: (1) plaintiff desires bring (2) so little made (3) great enough dismissal forum non conveniens grounds. record supplies indication how many suits fit description (even example ante, 894), frankly idea one go about estimating number. well "significant," know "negligible." 15 A firm takes alternative, declining theoretically (as says) "in perpetuity"—at least far concerned. But again, is, unless anything perpetual seems very unlikely anyone intentionally wait sue sooner—not prospective defendant die dissolve, also prejudgment normally awarded, staleness evidence generally harms party proof. likelihood unintentionally delayed brought enormously large. whatever seem terribly plausible real-world deterrent produced incremental cost timely suit. point me can speculate. 16 On side scale, considers benefit interests. These are, presumably, enable preservation placed beyond courts, (by encouraging agent) facilitate difficult locate. 410, 1142-1143, (it reasonable assumption unrepresented corporations, rule, easy serve"). way knowing often these ends fact achieved, says them except call "an consider." Ante, 893. 17 Having evaluated sides roughly this, then proceeds judge important. ordinarily called "balancing," Pike Bruce Church, 397 137, 142, 844, 847, 25 174 (1970), scale analogy really appropriate, incommensurate. judging line longer rock heavy. All persuaded burdens "significant" determinative decision benefits "important." Were brief implication here unjustified interest, see 894, suggest persuasively written coming out opposite way. sometimes similar "balancing" judgments determining needs intrude liberties individual, see, e.g., Boos Barry, 485 312, 324, 1157, ----, 99 333 (1988), essence function nonpolitical branch. Weighing governmental contrast, task squarely responsibility Congress, Const., Art. I, § 8, cl. 3, "ill suited judicial function." 95, 1652, (SCALIA, judgment). 18 therefore abandon approach negative cases, explicitly adopted years ago supra, leave essentially legislative Congress. Issues decided untouched, adopt future analysis appropriate role abilities. damage protected doctrine stare decisis. Since outcome still-undecided issue current methodology my view predictable—except broad range event come same test apply—no expectations possibly upset. contrary, ultimate objective rule decisis furthered. Because apply considerably clear, confident readily able entertained. 19 view, if, accords treatment respect achieve lawful purpose. validating purpose exists, Congress Rev.Code Ann. 2305.15 (Supp.1987), applies That facial justified basis "it advances adequately served nondiscriminatory alternatives," Energy Indiana Limbach, 269, 278, 1803, 302 (1988). operated reach found mail narrowly tailored advance preserving claims; extends even (like Enterprises) fully suable reachable through mails. 20 discriminates applying disadvantageous nonresidents valid requires concur judgment 21 Chief dissenting. 22 arises two peculiar, unique, law. though "longarm"'S nonetheless second installing machinery equipment sold order transact 1703.02 (Supp.1987). dwells heavily peculiarity law, makes mention second. 23 plant sparse fair say sale reason think such. Cases (1974), (1921), relies, deal respecting goods stream commerce." U.S., 30, S.Ct., 266. require licensure seeks engage sort transaction. when engages intrastate Eli Lilly Sav-On-Drugs, 366 276, 81 1316, 288 (1961). And where commodity, aspect business. Union Brokerage Jensen, 322 202, 64 967, 88 1227 (1944). 24 Thus, Midwesco's immunity requirement doing federal statutes. insisted portion treat entity incurred liability, thereafter think, circumstances. here, reverse Appeals. 2305.09 (1981) provides pertinent part: "An shall four after thereof accrued: "(C) For relief ground fraud." 1302.98 (1979) "(A) An commenced accrued. By original agreement reduce limitation less year it. "(B) accrues occurs, regardless aggrieved party's lack knowledge breach." (Supp.1987) provides: "When person, he state, absconded, conceals himself, commencement provided sections 2305.04 2305.14, 1302.98, 1304.29 Revised Code, begin run until comes absconded concealed. departs absconds, his absence concealment computed brought." 2307.38.2 court directly agent, arising person's: "(1) Transacting state; "(2) Contracting supply services "(3) Causing tortious injury act omission based solely section, enumerated section him." 1703.04.1 (1985), Every profit licensed every nonprofit maintain referred 'designated agent,' whom state. . "(H) delivering copy natural address appears secretary "(I) limit affect serve law." comply concerns, exempts registration requirement: "Sections 1703.01 1703.31, inclusive, Code installation, demonstration, repair ." Section not, remove provision. Searle, declined Jersey impermissibly burdened "clouded ambiguity law," remanded 413-414, 1144-1145. "for further consideration issue." Hopkins Kelsey-Hayes, 677 301, (CA3 1982). Before ruled, Supreme declared forced provision, review. Coons American Honda Motor N.J. 307, 463 A.2d 921 (1983), cert. denied, 469 1123, 105 808, 83 800 (1985).

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