Source: https://www.scribd.com/document/397965280/mm
Timestamp: 2019-06-17 14:01:08
Document Index: 144924177

Matched Legal Cases: ['§ 9998', '§ 9998', '§ 9998', '§ 14', '§ 1606', '§ 6', '§ 237', '§ 344', '§ 1606']

mm | Service Of Process | Lawsuit
2018.06.20 Doc 1-18 Summons
Practice Court 2 Report
Neff provision as to proof of the publication is satisfied when the affidavit is made by the editor of the
95 U.S. 714 paper.
RULE: 2. A personal judgment is without any validity if it be rendered by a State court in an action upon a
Since the adoption of U.S. Const. amend. XIV, the validity of judgments against persons who have money demand against a nonresident of the State who was served by a publication of summons,
not been personally summoned or had notice of the proceeding may be directly questioned, and but upon whom no personal service of process within the State was made, and who did not appear;
their enforcement in the State resisted, on the ground that proceedings in a court of justice to and no title to property passes by a sale under an execution issued upon such a judgment.
determine the personal rights and obligations of parties over whom that court has no jurisdiction
do not constitute due process of law. 3. The State, having within her territory property of a nonresident, may hold and appropriate it to
FACTS: satisfy the claims of her citizens against him, and her tribunals may inquire into his obligations to
This was an action to recover possession of a tract of land to which both parties asserted title. the extent necessary to control the disposition of that property. If he has no property in the State,
Pennoyer claimed to have acquired the premises under a sheriff's deed made upon a sale of the there is nothing upon which her tribunals can adjudicate.
property resulting from a judgment recovered against Neff by a certain J. H. Mitchell in one of the
circuit courts of the state of Oregon. At the time, Neff was not a resident of Oregon and a default 4. Substituted service by publication, or in any other authorized form, is sufficient to inform a
judgment was obtained by Mitchell after Neff failed to come to court despite service of the process nonresident of the object of proceedings taken where property is once brought under the control
by publication. The case turned upon the validity of that judgment. of the court by seizure or some equivalent act, but where the suit is brought to determine his
ISSUE: personal rights and obligations, that is, where it is merely in personam, such service upon him is
Can a state court exercise personal jurisdiction against a non-resident who was not personally ineffectual for any purpose.
served with process within the state but by publication in a newspaper?
ANSWER: 5. Process from the tribunals of one State cannot run into another State and summon a party there
No. domiciled to respond to proceedings against him, and publication of process or of notice within the
CONCLUSION: State in which the tribunal sits cannot create any greater obligation upon him to appear. Process
The judgment from the underlying action was invalid since the plaintiff was a non-resident of the sent to him out of the State, and process published within it, are equally unavailing in proceedings
to establish his personal liability.
state in which the action was brought and was not personally served. The validity of judgments
against persons who have not been personally summoned or had notice of the proceeding may be
directly questioned, and their enforcement in the State resisted, on the ground that proceedings in 6. Except in cases affecting the personal status of the plaintiff, and in those wherein that mode of
service may be considered to have been assented to in advance, the substituted service of process
a court of justice to determine the personal rights and obligations of parties over whom that court
by publication allowed by the law of Oregon and by similar laws in other States where actions are
has no jurisdiction do not constitute due process of law.
brought against nonresidents is effectual only where, in connection with process against the person
for commencing the action, property in the State is brought under the control of the court and
Syllabus subjected to its disposition by process adapted to that purpose, or where the judgment is sought as
a means of reaching such property or affecting some interest therein; in other words, where the
1. A statute of Oregon, after providing for service of summons upon parties or their representatives, action is in the nature of a proceeding in rem.
personally or at their residence, declares that, when service cannot be thus made, and the
defendant, after due diligence, cannot be found within the State, and 7. Whilst the courts of the United States are not foreign tribunals in their relations to the State
courts, they are tribunals of a different sovereignty, and are bound to give a judgment of a State
"that fact appears, by affidavit, to the satisfaction of the court or judge thereof, and it, in like court only the same faith and credit to which it is entitled in the courts of another State.
manner, appears that a cause of action exists against the defendant, or that he is a proper party to
an action relating to real property in the State, such court or judge may grant an order that the 8. The term "due process of law," when applied to judicial proceedings, means a course of legal
service be made by publication of summons . . . when the defendant is not a resident of the State, proceedings according to those rules and principles which have been established by our
but has property therein, and the court has jurisdiction of the subject of the action," jurisprudence for the protection and enforcement of private rights. To give such proceedings any
validity, there must be a competent tribunal to pass upon their subject matter, and if that involves
-- the order to designate a newspaper of the county where the action is commenced in which the merely a determination of the personal liability of the defendant, he must be brought within its
publication shall be made -- and that proof of such publication shall be "the affidavit of the printer, jurisdiction by service of process within the State, or by his voluntary appearance.
or his foreman, or his principal clerk."
This action was brought by Neff against Pennoyer for the recovery of a tract of land situated in
Held, that defects in the affidavit for the order can only be taken advantage of on appeal, or by some Multnomah County, Oregon. Pennoyer, in his answer, denied Neff's title and right to possession,
other direct proceeding, and cannot be urged to impeach the judgment collaterally, and that the and set up a title in himself.
By consent of parties, and in pursuance of their written stipulation filed in the case, the cause was cannot be found in this State; that plaintiff has a just cause of action against defendant for a money
tried by the court, and a special verdict given, upon which judgment was rendered in favor of Neff; demand on account; that this court has jurisdiction of such action; that the defendant has property
whereupon Pennoyer sued out this writ of error. in this county and State."
The parties respectively claimed title as follows: Neff under a patent issued to him by the United That the complaint in said action was verified and filed on Nov. 3, 1865, and contained facts tending
States, March 19, 1866; and Pennoyer by virtue of a sale made by the sheriff of said county, under to prove that, at that date, said Mitchell had a cause of action against said Neff for services as an
an execution sued out upon a judgment against Neff, rendered Feb. 19, 1866, by the Circuit Court attorney, performed "between Jan. 1, 1862, and May 15, 1863." That the entry of judgment in said
for said county, in an action wherein he was defendant and J. H. Mitchell was plaintiff. Neff was action contained the following averments:
then a nonresident of Oregon.
"And it appearing to the court that the defendant was, at the time of the commencement of this
In Mitchell v. Neff, jurisdiction of Neff was obtained by service of summons by publication. Pennoyer action, and ever since has been, a nonresident of this State; and it further appearing that he has
offered in evidence duly certified copies of the complaint, summons, order for publication of property in this State, and that defendant had notice of the pendency of this action by publication
summons, affidavit of service by publication, and the judgment in that case, to the introduction of of the summons for six successive weeks in the 'Pacific Christian Advocate,' a weekly newspaper of
which papers the plaintiff objected because, 1, said judgment is in personam, and appears to have general circulation published in Multnomah County, State of Oregon, the last issue of which was
been given without the appearance of the defendant in the action or personal service of the more than twenty days before the first day of this term."
summons upon him, and while he was a nonresident of the State, and is, therefore, void; 2, said
judgment is not in rem, and therefore constitutes no basis of title in the defendant; 3, said copies of That the affidavit showing the publication of the summons in the "Advocate" aforesaid was made
complaint, &c., do not show jurisdiction to give the judgment alleged, either in rem or personam; as stated therein by the "editor" of that paper. That said complaint, summons, affidavit of Mitchell
and, 4, it appears from said papers that no proof of service by publication was ever made, the and of the "editor" of the "Advocate" aforesaid, and entry of judgment, were in the judgment roll,
affidavit thereof being made by the "editor" of the "Pacific Christian Advocate," and not by "the made up by the clerk in the case, but the order for publication of the summons aforesaid was not
printer, or his foreman or principal clerk." The court admitted the evidence subject to the placed in said roll by said clerk, but remains on the files of said court; and that, when said court
objections. made said order for publication, and gave said judgment against Neff, the only evidence it had
before it to prove the facts necessary to give it jurisdiction therefor, and particularly to authorize it
The finding of the court in regard to the facts bearing upon the asserted jurisdiction of the State to find and state that Neff's residence was unknown to Mitchell, and could not, with reasonable
court is as follows: -- diligence, be ascertained by him, and that Neff had notice of the pendency of said action by the
publication of the summons as aforesaid, was, so far as appears by the said roll and the records and
That, on Nov. 13, 1865, Mitchell applied to said Circuit Court, upon his own affidavit of that date, files of the said court, the said complaint and affidavits of Mitchell and the editor of the "Advocate."
for an order allowing the service of the summons in said action to be made upon Neff by publication
thereof, whereupon said court made said order, in the words following: The statute of Oregon at the time of the commencement of the suit against Neff was as follows: --
"Now, at this day, comes the plaintiff in his proper person, and by his attorneys, Mitchell and Dolph, "SECT. 55. When service of the summons cannot be made as prescribed in the last preceding
and files affidavit of plaintiff, and motion for an order of publication of summons, as follows, to wit:" section, and the defendant, after due diligence, cannot be found within the State, and when that
fact appears, by affidavit, to the satisfaction of the court or judge thereof, or justice in an action in
"Now comes the plaintiff, by his attorneys, and upon the affidavit of plaintiff, herewith filed, moves a justice's court, and it also appears that a cause of action exists against the defendant, or that he
the court for an order of publication of summons against defendant, as required by law, he being a is a proper party to an action relating to real property in this State, such court or judge or justice
nonresident;" may grant an order that the service be made by publication of summons in either of the following
cases: . . ."
found in this State, and that he is a nonresident thereof, that his place of residence is unknown to "3. When the defendant is not a resident of the State, but has property therein, and the court has
plaintiff, and cannot, with reasonable diligence, be ascertained by him, and that the plaintiff has a jurisdiction of the subject of the action."
cause of action of action against defendant, and that defendant has property in this county and
State, it is ordered and adjudged by the court that service of the summons in this action be made "SECT. 56. The order shall direct the publication to be made in a newspaper published in the county
by publication for six weeks successively in the 'Pacific Christian Advocate,' a weekly newspaper where the action is commenced, and, if no newspaper be published in the county, then in a
published in Multnomah County, Oregon, and this action is continued for such service." newspaper to be designated as most likely to give notice to the person to be served, and for such
length of time as may be deemed reasonable, not less than once a week for six weeks. In case of
That the affidavit of plaintiff, referred to in said order, is in the words following: publication, the court or judge shall also direct a copy of the summons and complaint to be forthwith
deposited in the post office, directed to the defendant, at his place of residence, unless it shall
appear that such residence is neither known to the party making the application, nor can, with
"I, J. H. Mitchell, being first duly sworn, say that the defendant, Marcus Neff, is a nonresident of this
reasonable diligence, be ascertained by him. When publication is ordered, personal service of a copy
State; that he resides somewhere in the State of California, at what place affiant knows not, and he
of the summons and complaint out of the State shall be equivalent to publication and deposit in the authority beyond those limits would be deemed in every other forum, as has been said by this Court,
post office. In either case, the defendant shall appear and answer by the first day of the term an illegitimate assumption of power, and be resisted as mere abuse. D'Arcy v. Ketchum et al., 11
following the expiration of the time prescribed in the order for publication; and, if he does not, How. 165. In the case against the plaintiff, the property here in controversy sold under the judgment
judgment may be taken against him for want thereof. In case of personal service out of the State, rendered was not attached, nor in any way brought under the jurisdiction of the court. Its first
the summons shall specify the time prescribed in the order for publication." connection with the case was caused by a levy of the execution. It was not, therefore, disposed of
pursuant to any adjudication, but only in enforcement of a personal judgment, having no relation
"SECT. 57. The defendant against whom publication is ordered, or his personal representatives, on to the property, rendered against a nonresident without service of process upon him in the action
application and sufficient cause shown, at any time before judgment, shall be allowed to defend the or his appearance therein. The court below did not consider that an attachment of the property was
action; and the defendant against whom publication is ordered, or his representatives, may in like essential to its jurisdiction or to the validity of the sale, but held that the judgment was invalid from
manner, upon good cause shown, and upon such terms as may be proper, be allowed to defend defects in the affidavit upon which the order of publication was obtained and in the affidavit by
after judgment, and within one year after the entry of such judgment, on such terms as may be just; which the publication was proved.
and, if the defence be successful, and the judgment or any part thereof have been collected or
otherwise enforced, such restitution may thereupon be compelled as the court shall direct. But the There is some difference of opinion among the members of this Court as to the rulings upon these
title to property sold upon execution issued on such judgment to a purchaser in good faith shall not alleged defects. The majority are of opinion that, inasmuch as the statute requires, for an order of
be thereby affected." publication, that certain facts shall appear by affidavit to the satisfaction of the court or judge,
defects in such affidavit can only be taken advantage of on appeal, or by some other direct
"SECT. 60. Proof of the service of summons shall be, in case of publication, the affidavit of the proceeding, and cannot be urged to impeach the judgment collaterally. The majority of the court
printer, or his foreman, or his principal clerk, showing the same." are also of opinion that the provision of the statute requiring proof of the publication in a newspaper
to be made by the "affidavit of the printer, or his foreman, or his principal clerk" is satisfied when
the affidavit is made by the editor of the paper. The term "printer," in their judgment, is there used
not to indicate the person who sets up the type -- he does not usually have a foreman or clerks -- it
is rather used as synonymous with publisher. The Supreme Court of New York so held in one case;
This is an action to recover the possession of a tract of land, of the alleged value of $15,000, situated observing that, for the purpose of making the required proof, publishers were "within the spirit of
in the State of Oregon. The plaintiff asserts title to the premises by a patent of the United States the statute." Bunce v. Reed, 16 Barb. (N. Y.) 350. And, following this ruling, the Supreme Court of
issued to him in 1866, under the act of Congress of Sept. 27, 1850, usually known as the Donation California held that an affidavit made by a "publisher and proprietor" was sufficient. Sharp v.
Law of Oregon. The defendant claims to have acquired the premises under a sheriff's deed, made Daugney, 33 Cal. 512. The term "editor," as used when the statute of New York was passed, from
upon a sale of the property on execution issued upon a judgment recovered against the plaintiff in which the Oregon law is borrowed, usually included not only the person who wrote or selected the
one of the circuit courts of the State. The case turns upon the validity of this judgment. articles for publication, but the person who published the paper and put it into circulation. Webster,
in an early edition of his Dictionary, gives as one of the definitions of an editor, a person "who
It appears from the record that the judgment was rendered in February, 1866, in favor of J. H. superintends the publication of a newspaper." It is principally since that time that the business of
Mitchell, for less than $300, including costs, in an action brought by him upon a demand for services an editor has been separated from that of a publisher and printer, and has become an independent
as an attorney; that, at the time the action was commenced and the judgment rendered, the profession.
defendant therein, the plaintiff here, was a nonresident of the State; that he was not personally
served with process, and did not appear therein; and that the judgment was entered upon his If, therefore, we were confined to the rulings of the court below upon the defects in the affidavits
default in not answering the complaint, upon a constructive service of summons by publication. mentioned, we should be unable to uphold its decision. But it was also contended in that court, and
is insisted upon here, that the judgment in the State court against the plaintiff was void for want of
The Code of Oregon provides for such service when an action is brought against a nonresident and personal service of process on him, or of his appearance in the action in which it was rendered and
absent defendant who has property within the State. It also provides, where the action is for the that the premises in controversy could not be subjected to the payment of the demand of a resident
recovery of money or damages, for the attachment of the property of the nonresident. And it also creditor except by a proceeding in rem, that is, by a direct proceeding against the property for that
declares that no natural person is subject to the jurisdiction of a court of the State purpose. If these positions are sound, the ruling of the Circuit Court as to the invalidity of that
judgment must be sustained notwithstanding our dissent from the reasons upon which it was made.
"unless he appear in the court, or be found within the State, or be a resident thereof, or have And that they are sound would seem to follow from two well established principles of public law
property therein; and, in the last case, only to the extent of such property at the time the jurisdiction respecting the jurisdiction of an independent State over persons and property. The several States
attached." of the Union are not, it is true, in every respect independent, many of the right and powers which
originally belonged to them being now vested in the government created by the Constitution. But,
except as restrained and limited by that instrument, they possess and exercise the authority of
Construing this latter provision to mean that, in an action for money or damages where a defendant independent States, and the principles of public law to which we have referred are applicable to
does not appear in the court, and is not found within the State, and is not a resident thereof, but them. One of these principles is that every State possesses exclusive jurisdiction and sovereignty
has property therein, the jurisdiction of the court extends only over such property, the declaration over persons and property within its territory. As a consequence, every State has the power to
expresses a principle of general, if not universal, law. The authority of every tribunal is necessarily determine for itself the civil status and capacities of its inhabitants; to prescribe the subjects upon
restricted by the territorial limits of the State in which it is established. Any attempt to exercise which they may contract, the forms and solemnities with which their contracts shall be executed,
the rights and obligations arising from them, and the mode in which their validity shall be upon general principles, be deemed only to bind him to the extent of such property, and cannot
determined and their obligations enforced; and also the regulate the manner and conditions upon have the effect of a conclusive judgment in personam, for the plain reason, that, except so far as
which property situated within such territory, both personal and real, may be acquired, enjoyed, the property is concerned, it is a judgment coram non judice."
and transferred. The other principle of public law referred to follows from the one mentioned; that
is, that no State can exercise direct jurisdiction and authority over persons or property without its And in Boswell's Lessee v. Otis, 9 How. 336, where the title of the plaintiff in ejectment was acquired
territory. Story, Confl. Laws, c. 2; Wheat. Int. Law, pt. 2, c. 2. The several States are of equal dignity on a sheriff's sale under a money decree rendered upon publication of notice against nonresidents,
and authority, and the independence of one implies the exclusion of power from all others. And so in a suit brought to enforce a contract relating to land, Mr. Justice McLean said:--
it is laid down by jurists as an elementary principle that the laws of one State have no operation
outside of its territory except so far as is allowed by comity, and that no tribunal established by it
"Jurisdiction is acquired in one of two modes: first, as against the person of the defendant by the
can extend its process beyond that territory so as to subject either persons or property to its
service of process; or, secondly, by a procedure against the property of the defendant within the
decisions. "Any exertion of authority of this sort beyond this limit," says Story, "is a mere nullity,
jurisdiction of the court. In the latter case, the defendant is not personally bound by the judgment
and incapable of binding such persons or property in any other tribunals." Story, Confl.Laws, sect.
beyond the property in question. And it is immaterial whether the proceeding against the property
be by an attachment or bill in chancery. It must be substantially a proceeding in rem."
But as contracts made in one State may be enforceable only in another State, and property may be
These citations are not made as authoritative expositions of the law, for the language was perhaps
held by nonresidents, the exercise of the jurisdiction which every State is admitted to possess over
not essential to the decision of the cases in which it was used, but as expressions of the opinion of
persons and property within its own territory will often affect persons and property without it. To
eminent jurists. But in Cooper v. Reynolds, reported in the 10th of Wallace, it was essential to the
any influence exerted in this way by a State affecting persons resident or property situated
disposition of the case to declare the effect of a personal action against an absent party, without
elsewhere, no objection can be justly taken; whilst any direct exertion of authority upon them, in
the jurisdiction of the court, not served with process or voluntarily submitting to the tribunal, when
an attempt to give ex-territorial operation to its laws, or to enforce an ex-territorial jurisdiction by
it was sought to subject his property to the payment of a demand of a resident complainant; and,
its tribunals, would be deemed an encroachment upon the independence of the State in which the
in the opinion there delivered, we have a clear statement of the law as to the efficacy of such
persons are domiciled or the property is situated, and be resisted as usurpation.
actions, and the jurisdiction of the court over them. In that case, the action was for damages for
alleged false imprisonment of the plaintiff; and, upon his affidavit that the defendants had fled from
Thus the State, through its tribunals, may compel persons domiciled within its limits to execute, in the State, or had absconded or concealed themselves so that the ordinary process of law could not
pursuance of their contracts respecting property elsewhere situated, instruments in such form and reach them, a writ of attachment was sued out against their property. Publication was ordered by
with such solemnities as to transfer the title, so far as such formalities can be complied with; and the court, giving notice to them to appear and plead, answer or demur, or that the action would be
the exercise of this jurisdiction in no manner interferes with the supreme control over the property taken as confessed and proceeded in ex parte as to them. Publication was had, but they made
by the State within which it is situated. Penn v. Lord Baltimore, 1 Ves. 444; Massie v. Watts, 6 Cranch default, and judgment was entered against them, and the attached property was sold under it. The
148; Watkins v. Holman, 16 Pet. 25; Corbett v. Nutt, 10 Wall. 464. purchaser having been put into possession of the property, the original owner brought ejectment
for its recovery. In considering the character of the proceeding, the Court, speaking through Mr.
So the State, through its tribunals, may subject property situated within its limits owned by Justice Miller, said:--
nonresidents to the payment of the demand of its own citizens against them, and the exercise of
this jurisdiction in no respect infringes upon the sovereignty of the State where the owners are "Its essential purpose or nature is to establish, by the judgment of the court, a demand or claim
domiciled. Every State owes protection to its own citizens, and, when nonresidents deal with them, against the defendant, and subject his property lying within the territorial jurisdiction of the court
it is a legitimate and just exercise of authority to hold and appropriate any property owned by such to the payment of that demand. But the plaintiff is met at the commencement of his proceedings
nonresidents to satisfy the claims of its citizens. It is in virtue of the State's jurisdiction over the by the fact that the defendant is not within the territorial jurisdiction, and cannot be served with
property of the nonresident situated within its limits that its tribunals can inquire into that any process by which he can be brought personally within the power of the court. For this difficulty,
nonresident's obligations to its own citizens, and the inquiry can then be carried only to the extent the statute has provided a remedy. It says that, upon affidavit's being made of that fact, a writ of
necessary to control the disposition of the property. If the nonresident have no property in the attachment may be issued and levied on any of the defendant's property, and a publication may be
State, there is nothing upon which the tribunals can adjudicate. made warning him to appear; and that thereafter the court may proceed in the case, whether he
appears or not. If the defendant appears, the cause becomes mainly a suit in personam, with the
These views are not new. They have been frequently expressed, with more or less distinctness, in added incident that the property attached remains liable, under the control of the court, to answer
opinions of eminent judges, and have been carried into adjudications in numerous cases. Thus, in to any demand which may be established against the defendant by the final judgment of the court.
Picquet v. Swan, 5 Mas. 35, Mr. Justice Story said:-- But if there is no appearance of the defendant, and no service of process on him, the case becomes
in its essential nature a proceeding in rem, the only effect of which is to subject the property
"Where a party is within a territory, he may justly be subjected to its process, and bound personally attached to the payment of the demand which the court may find to be due to the plaintiff. That
by the judgment pronounced on such process against him. Where he is not within such territory, such is the nature of this proceeding in this latter class of cases is clearly evinced by two well
and is not personally subject to its laws, if, on account of his supposed or actual property being established propositions: first, the judgment of the court, though in form a personal judgment
within the territory, process by the local laws may, by attachment, go to compel his appearance, against the defendant, has no effect beyond the property attached in that suit. No general execution
and, for his default to appear, judgment may be pronounced against him, such a judgment must, can be issued for any balance unpaid after the attached property is exhausted. No suit can be
maintained on such a judgment in the same court, or in any other; nor can it be used as evidence in such demands be first established in a personal action, and the property of the nonresident be
any other proceeding not affecting the attached property; nor could the costs in that proceeding be afterwards seized and sold on execution. But the answer to this position has already been given in
collected of defendant out of any other property than that attached in the suit. Second, the court the statement that the jurisdiction of the court to inquire into and determine his obligations at all
in such a suit cannot proceed unless the officer finds some property of defendant on which to levy is only incidental to its jurisdiction over the property. Its jurisdiction in that respect cannot be made
the writ of attachment. A return that none can be found is the end of the case, and deprives the to depend upon facts to be ascertained after it has tried the cause and rendered the judgment. If
court of further jurisdiction, though the publication may have been duly made and proven in court." the judgment be previously void, it will not become valid by the subsequent discovery of property
of the defendant, or by his subsequent acquisition of it. The judgment, if void when rendered, will
The fact that the defendants in that case had fled from the State, or had concealed themselves, so always remain void; it cannot occupy the doubtful position of being valid if property be found, and
as not to be reached by the ordinary process of the court, and were not nonresidents, was not made void if there be none. Even if the position assumed were confined to cases where the nonresident
a point in the decision. The opinion treated them as being without the territorial jurisdiction of the defendant possessed property in the State at the commencement of the action, it would still make
court, and the grounds and extent of its authority over persons and property thus situated were the validity of the proceedings and judgment depend upon the question whether, before the levy
considered when they were not brought within its jurisdiction by personal service or voluntary of the execution, the defendant had or had not disposed of the property. If, before the levy, the
appearance. property should be sold, then, according to this position, the judgment would not be binding. This
doctrine would introduce a new element of uncertainty in judicial proceedings. The contrary is the
law: the validity of every judgment depends upon the jurisdiction of the court before it is rendered,
The writer of the present opinion considered that some of the objections to the preliminary
not upon what may occur subsequently. In Webster v. Reid, reported in 11th of Howard, the plaintiff
proceedings in the attachment suit were well taken, and therefore dissented from the judgment of
claimed title to land sold under judgments recovered in suits brought in a territorial court of Iowa,
the Court, but, to the doctrine declared in the above citation, he agreed, and he may add that it
upon publication of notice under a law of the territory, without service of process; and the court
received the approval of all the judges. It is the only doctrine consistent with proper protection to
citizens of other States. If, without personal service, judgments in personam, obtained ex parte
against nonresidents and absent parties, upon mere publication of process, which, in the great
majority of cases, would never be seen by the parties interested, could be upheld and enforced, "These suits were not a proceeding in rem against the land, but were in personam against the
they would be the constant instruments of fraud and oppression. Judgments for all sorts of claims owners of it. Whether they all resided within the territory or not does not appear, nor is it a matter
upon contracts and for torts, real or pretended, would be thus obtained, under which property of any importance. No person is required to answer in a suit on whom process has not been served,
would be seized, when the evidence of the transactions upon which they were founded, if they ever or whose property has not been attached. In this case, there was no personal notice, nor an
had any existence, had perished. attachment or other proceeding against the land, until after the judgments. The judgments,
therefore, are nullities, and did not authorize the executions on which the land was sold. "
Substituted service by publication, or in any other authorized form, may be sufficient to inform
parties of the object of proceedings taken where property is once brought under the control of the The force and effect of judgments rendered against nonresidents without personal service of
court by seizure or some equivalent act. The law assumes that property is always in the possession process upon them, or their voluntary appearance, have been the subject of frequent consideration
of its owner, in person or by agent, and it proceeds upon the theory that its seizure will inform him in the courts of the United States and of the several States, as attempts have been made to enforce
not only that it is taken into the custody of the court, but that he must look to any proceedings such judgments in States other than those in which they were rendered, under the provision of the
authorized by law upon such seizure for its condemnation and sale. Such service may also be Constitution requiring that "full faith and credit shall be given in each State to the public acts,
sufficient in cases where the object of the action is to reach and dispose of property in the State, or records, and judicial proceedings of every other State;" and the act of Congress providing for the
of some interest therein, by enforcing a contract or a lien respecting the same, or to partition it mode of authenticating such acts, records, and proceedings, and declaring that, when thus
among different owners, or, when the public is a party, to condemn and appropriate it for a public authenticated,
purpose. In other words, such service may answer in all actions which are substantially proceedings
in rem. But where the entire object of the action is to determine the personal rights and obligations "they shall have such faith and credit given to them in every court within the United States as they
of the defendants, that is, where the suit is merely in personam, constructive service in this form have by law or usage in the courts of the State from which they are or shall or taken."
upon a nonresident is ineffectual for any purpose. Process from the tribunals of one State cannot
run into another State, and summon parties there domiciled to leave its territory and respond to In the earlier cases, it was supposed that the act gave to all judgments the same effect in other
proceedings against them. Publication of process or notice within the State where the tribunal sits States which they had by law in the State where rendered. But this view was afterwards qualified
cannot create any greater obligation upon the nonresident to appear. Process sent to him out of so as to make the act applicable only when the court rendering the judgment had jurisdiction of the
the State, and process published within it, are equally unavailing in proceedings to establish his parties and of the subject matter, and not to preclude an inquiry into the jurisdiction of the court in
personal liability. which the judgment was rendered, or the right of the State itself to exercise authority over the
person or the subject matter. M'Elmoyle v. Cohen, 13 Pet. 312. In the case of D'Arcy v. Ketchum,
The want of authority of the tribunals of a State to adjudicate upon the obligations of nonresidents, reported in the 11th of Howard, this view is stated with great clearness. That was an action in the
where they have no property within its limits, is not denied by the court below: but the position is Circuit Court of the United States for Louisiana, brought upon a judgment rendered in New York
assumed, that, where they have property within the State, it is immaterial whether the property is under a State statute, against two joint debtors, only one of whom had been served with process,
in the first instance brought under the control of the court by attachment or some other equivalent the other being a nonresident of the State. The Circuit Court held the judgment conclusive and
act, and afterwards applied by its judgment to the satisfaction of demands against its owner; or binding upon the nonresident not served with process, but this Court reversed its decision,
observing, that it was a familiar rule that countries foreign to our own disregarded a judgment judgment in the State of the debtor against a suit for it, because the court rendering the judgment
merely against the person, where the defendant had not been served with process nor had a day in had jurisdiction to that extent; but that, if the property attached were insufficient to satisfy the
court; that national comity was never thus extended; that the proceeding was deemed an judgment, and the creditor should sue on that judgment in the State of the debtor, he would fail
illegitimate assumption of power, and resisted as mere abuse; that no faith and credit or force and because the defendant was not amenable to the court rendering the judgment. In other words, it
effect had been given to such judgments by any State of the Union, so far as known; and that the was held that over the property within the State the court had jurisdiction by the attachment, but
State courts had uniformly, and in many instances, held them to be void. "The international law," had none over his person, and that any determination of his liability, except so far as was necessary
said the court, for the disposition of the property, was invalid.
"as it existed among the States in 1790, was that a judgment rendered in one State, assuming to In Kilbourn v. Woodworth, 5 Johns. (N.Y.) 37, an action of debt was brought in New York upon a
bind the person of a citizen of another, was void within the foreign State, when the defendant had personal judgment recovered in Massachusetts. The defendant in that judgment was not served
not been served with process or voluntarily made defence, because neither the legislative with process, and the suit was commenced by the attachment of a bedstead belonging to the
jurisdiction nor that of courts of justice had binding force." defendant, accompanied with a summons to appear, served on his wife after she had left her place
in Massachusetts. The court held that the attachment bound only the property attached as a
And the Court held that the act of Congress did not intend to declare a new rule, or to embrace proceeding in rem, and that it could not bind the defendant, observing, that to bind a defendant
judicial records of this description. As was stated in a subsequent case, the doctrine of this Court is personally when he was never personally summoned or had notice of the proceeding would be
that the act contrary to the first principles of justice, repeating the language in that respect of Chief Justice
DeGrey, used in the case of Fisher v. Lane, 3 Wils. 297, in 1772. See also Borden v. Fitch, 15 Johns.
(N. Y.) 121, and the cases there cited, and Harris v. Hardeman et al., 14 How. 334. To the same
"was not designed to displace that principle of natural justice which requires a person to have notice
purport, decisions are found in all the State courts. In several of the cases, the decision has been
of a suit before he can be conclusively bound by its result, nor those rules of public law which protect
accompanied with the observation that a personal judgment thus recovered has no binding force
persons and property within one State from the exercise of jurisdiction over them by another."
without the State in which it is rendered, implying that, in such State, it may be valid and binding.
But if the court has no jurisdiction over the person of the defendant by reason of his nonresidence,
The Lafayette Insurance Co. v. French et al., 18 How. 404. and consequently no authority to pass upon his personal rights and obligations; if the whole
proceeding, without service upon him or his appearance, is coram non judice and void; if to hold a
This whole subject has been very fully and learnedly considered in the recent case of Thompson v. defendant bound by such a judgment is contrary to the first principles of justice -- it is difficult to
Whitman, 18 Wall. 457, where all the authorities are carefully reviewed and distinguished, and the see how the judgment can legitimately have any force within the State. The language used can be
conclusion above stated is not only reaffirmed, but the doctrine is asserted that the record of a justified only on the ground that there was no mode of directly reviewing such judgment or
judgment rendered in another State may be contradicted as to the facts necessary to give the court impeaching its validity within the State where rendered, and that therefore it could be called in
jurisdiction against its recital of their existence. In all the cases brought in the State and Federal question only when its enforcement was elsewhere attempted. In later cases, this language is
courts, where attempts have been made under the act of Congress to give effect in one State to repeated with less frequency than formerly, it beginning to be considered, as it always ought to
personal judgments rendered in another State against nonresidents, without service upon them, or have been, that a judgment which can be treated in any State of this Union as contrary to the first
upon substituted service by publication, or in some other form, it has been held, without an principles of justice, and as an absolute nullity, because rendered without any jurisdiction of the
exception, so far as we are aware, that such judgments were without any binding force except as to tribunal over the party, is not entitled to any respect in the State where rendered. Smith v.
property, or interests in property, within the State, to reach and affect which was the object of the McCutchen, 38 Mo. 415; Darrance v. Preston, 18 Iowa, 396; Hakes v. Shupe, 27 id. 465; Mitchell's
action in which the judgment was rendered, and which property was brought under control of the Administrator v. Gray, 18 Ind. 123.
court in connection with the process against the person. The proceeding in such cases, though in
the form of a personal action, has been uniformly treated, where service was not obtained, and the Be that as it may, the courts of the United States are not required to give effect to judgments of this
party did not voluntarily appear, as effectual and binding merely as a proceeding in rem, and as character when any right is claimed under them. Whilst they are not foreign tribunals in their
having no operation beyond the disposition of the property, or some interest therein. And the relations to the State courts, they are tribunals of a different sovereignty, exercising a distinct and
reason assigned for this conclusion has been that which we have already stated -- that the tribunals independent jurisdiction, and are bound to give to the judgments of the State courts only the same
of one State have no jurisdiction over persons beyond its limits, and can inquire only into their faith and credit which the courts of another State are bound to give to them.
obligations to its citizens when exercising its conceded jurisdiction over their property within its
limits. In Bissell v. Briggs, decided by the Supreme Court of Massachusetts as early as 1813, the law
Since the adoption of the Fourteenth Amendment to the Federal Constitution, the validity of such
is stated substantially in conformity with these views. In that case, the court considered at length
judgments may be directly questioned, and their enforcement in the State resisted, on the ground
the effect of the constitutional provision, and the act of Congress mentioned, and after stating that,
that proceedings in a court of justice to determine the personal rights and obligations of parties
in order to entitle the judgment rendered in any court of the United States to the full faith and credit
over whom that court has no jurisdiction do not constitute due process of law. Whatever difficulty
mentioned in the Constitution, the court must have had jurisdiction not only of the cause, but of
may be experienced in giving to those terms a definition which will embrace every permissible
the parties, it proceeded to illustrate its position by observing, that, where a debtor living in one
exertion of power affecting private rights, and exclude such as is forbidden, there can be no doubt
State has goods, effects, and credits in another, his creditor living in the other State may have the
of their meaning when applied to judicial proceedings. They then mean a course of legal
property attached pursuant to its laws, and, on recovering judgment, have the property applied to
proceedings according to those rules and principles which have been established in our systems of
its satisfaction, and that the party in whose hands the property was would be protected by the
jurisprudence for the protection and enforcement of private rights. To give such proceedings any notice to the offending party, the injured citizen would be without redress. Bish. Marr. and Div.,
validity, there must be a tribunal competent by its constitution -- that is, by the law of its creation - sect. 156.
- to pass upon the subject matter of the suit; and if that involves merely a determination of the
personal liability of the defendant, he must be brought within its jurisdiction by service of process Neither do we mean to assert that a State may not require a nonresident entering into a partnership
within the State, or his voluntary appearance. or association within its limits, or making contracts enforceable there, to appoint an agent or
representative in the State to receive service of process and notice in legal proceedings instituted
Except in cases affecting the personal status of the plaintiff and cases in which that mode of service with respect to such partnership, association, or contracts, or to designate a place where such
may be considered to have been assented to in advance, as hereinafter mentioned, the substituted service may be made and notice given, and provide, upon their failure, to make such appointment
service of process by publication, allowed by the law of Oregon and by similar laws in other States, or to designate such place that service may be made upon a public officer designated for that
where actions are brought against nonresidents, is effectual only where, in connection with process purpose, or in some other prescribed way, and that judgments rendered upon such service may not
against the person for commencing the action, property in the State is brought under the control of be binding upon the nonresidents both within and without the State. As was said by the Court of
the court, and subjected to its disposition by process adapted to that purpose, or where the Exchequer in Vallee v. Dumergue, 4 Exch. 290,
judgment is sought as a means of reaching such property or affecting some interest therein; in other
words, where the action is in the nature of a proceeding in rem. As stated by Cooley in his Treatise "It is not contrary to natural justice that a man who has agreed to receive a particular mode of
on Constitutional Limitations 405, for any other purpose than to subject the property of a notification of legal proceedings should be bound by a judgment in which that particular mode of
nonresident to valid claims against him in the State, "due process of law would require appearance notification has been followed, even though he may not have actual notice of them."
or personal service before the defendant could be personally bound by any judgment rendered."
See also The Lafayette Insurance Co. v. French et al., 18 How. 404, and Gillespie v. Commercial
It is true that, in a strict sense, a proceeding in rem is one taken directly against property, and has Mutual Marine Insurance Co., 12 Gray (Mass.), 201. Nor do we doubt that a State, on creating
for its object the disposition of the property, without reference to the title of individual claimants; corporations or other institutions for pecuniary or charitable purposes, may provide a mode in
but, in a larger and more general sense, the terms are applied to actions between parties where the which their conduct may be investigated, their obligations enforced, or their charters revoked,
direct object is to reach and dispose of property owned by them, or of some interest therein. Such which shall require other than personal service upon their officers or members. Parties becoming
are cases commenced by attachment against the property of debtors, or instituted to partition real members of such corporations or institutions would hold their interest subject to the conditions
estate, foreclose a mortgage, or enforce a lien. So far as they affect property in the State, they are prescribed by law. Copin v. Adamson, Law Rep. 9 Ex. 345.
substantially proceedings in rem in the broader sense which we have mentioned.
In the present case, there is no feature of this kind, and consequently no consideration of what
It is hardly necessary to observe that, in all we have said, we have had reference to proceedings in would be the effect of such legislation in enforcing the contract of a nonresident can arise. The
courts of first instance, and to their jurisdiction, and not to proceedings in an appellate tribunal to question here respects only the validity of a money judgment rendered in one State in an action
review the action of such courts. The latter may be taken upon such notice, personal or constructive, upon a simple contract against the resident of another without service of process upon him or his
as the State creating the tribunal may provide. They are considered as rather a continuation of the appearance therein.
original litigation than the commencement of a new action. Nations et al. v. Johnson et al., 24 How.
It follows from the views expressed that the personal judgment recovered in the State court of
Oregon against the plaintiff herein, then a nonresident of the State, was without any validity, and
did not authorize a sale of the property in controversy.
To prevent any misapplication of the views expressed in this opinion, it is proper to observe that we
do not mean to assert by anything we have said that a State may not authorize proceedings to
determine the status of one of its citizens towards a nonresident which would be binding within the
State, though made without service of process or personal notice to the nonresident. The
jurisdiction which every State possesses to determine the civil status and capacities of all its
inhabitants involves authority to prescribe the conditions on which proceedings affecting them may
be commenced and carried on within its territory. The State, for example, has absolute right to
prescribe the conditions upon which the marriage relation between its own citizens shall be created,
and the causes for which it may be dissolved. One of the parties guilty of acts for which, by the law
of the State, a dissolution may be granted may have removed to a State where no dissolution is
permitted. The complaining party would, therefore, fail if a divorce were sought in the State of the
defendant; and if application could not be made to the tribunals of the complainant's domicile in
such case, and proceedings be there instituted without personal service of process or personal
U.S. Supreme Court The questions for decision are (1) whether, within the limitations of the due process clause of the
International Shoe v. State of Washington, 326 U.S. 310 (1945) Fourteenth Amendment, appellant, a Delaware corporation, has, by its activities in the State of
International Shoe v. State of Washington Washington, rendered itself amenable to proceedings in the courts of that state to recover unpaid
No. 107 contributions to the state unemployment compensation fund exacted by state statutes,
Argued November 14, 1945 Washington Unemployment Compensation Act, Washington Revised Statutes, § 9998-103a through
Decided December 3, 1945 § 9998-123a, 1941 Supp., and (2) whether the state can exact those contributions consistently with
326 U.S. 310 the due process clause of the Fourteenth Amendment.
The statutes in question set up a comprehensive scheme of unemployment compensation, the costs
Syllabus of which are defrayed by contributions required to be made by employers to a state unemployment
Activities within a State of salesmen in the employ of a foreign corporation, exhibiting samples of
merchandise and soliciting orders from prospective buyers to be accepted or rejected by the The contributions are a specified percentage of the wages payable annually by each employer for
corporation at a point outside the State, were systematic and continuous, and resulted in a large his employees' services in the state. The assessment and collection of the contributions and the
volume of interstate business. A statute of the State requires employers to pay into the state fund are administered by appellees. Section 14(c) of the Act (Wash.Rev.Stat., 1941 Supp., § 9998-
unemployment compensation fund a specified percentage of the wages paid for the services of 114c) authorizes appellee Commissioner to issue an order and notice of assessment of delinquent
employees within the State. contributions upon prescribed personal service of the notice upon the employer if found within the
state, or, if not so found, by mailing the notice to the employer by registered mail at his last known
Held: address. That section also authorizes the Commissioner to collect the assessment by distraint if it is
not paid within ten days after service of the notice. By §§ 14e and 6b, the order of assessment may
be administratively reviewed by an appeal tribunal within the office of unemployment upon petition
1. In view of 26 U.S.C. § 1606(a) , providing that no person shall be relieved from compliance with a
of the employer, and this determination is, by § 6i, made subject to judicial review on questions of
state law requiring payments to an unemployment fund on the ground that he is engaged in
law by the state Superior Court, with further right of appeal in the state Supreme Court, as in other
interstate commerce, the fact that the corporation is engaged in interstate commerce does not
relieve it from liability for payments to the state unemployment compensation fund. P. 326 U. S.
In this case, notice of assessment for the years in question was personally served upon a sales
solicitor employed by appellant in the State of Washington, and a copy of the notice was mailed by
2. The activities in behalf of the corporation render it amenable to suit in courts of the State to
registered mail to appellant at its address in St. Louis, Missouri. Appellant appeared specially before
recover payments due to the state unemployment compensation fund. P. 326 U. S. 320.
the office of unemployment, and moved to set aside the order and notice of assessment on the
ground that the service upon appellant's salesman was not proper service upon appellant; that
(a) The activities in question established between the State and the corporation sufficient contacts appellant was not a corporation of the State of Washington, and was not doing business within the
or ties to make it reasonable and just, and in conformity to the due process requirements of the state; that it had no agent within the state upon whom service could be made; and that appellant
Fourteenth Amendment, for the State to enforce against the corporation an obligation arising out is not an employer, and does not furnish employment within the meaning of the statute.
of such activities. P. 326 U. S. 320.
The motion was heard on evidence and a stipulation of facts by the appeal tribunal, which denied
(b) In such a suit to recover payments due to the unemployment compensation fund, service of the motion and ruled that appellee Commissioner was entitled to recover the unpaid contributions.
process upon one of the corporation's salesmen within the State, and notice sent by registered mail That action was affirmed by the Commissioner; both the Superior Court and the Supreme Court
to the corporation at its home office, satisfies the requirements of due process. P. 326 U. S. 320. affirmed. 22 Wash.2d 146, 154 P.2d 801. Appellant in each of these courts assailed the statute as
applied, as a violation of the due process clause of the Fourteenth Amendment, and as imposing a
3. The tax imposed by the state unemployment compensation statute -- construed by the state constitutionally prohibited burden on interstate commerce. The cause comes here on appeal under
court, in its application to the corporation, as a tax on the privilege of employing salesmen within § 237(a) of the Judicial Code, 28 U.S.C. § 344(a), appellant assigning as error that the challenged
the State -- does not violate the due process clause of the Fourteenth Amendment. P. 326 U. S. 321. statutes, as applied, infringe the due process clause of the Fourteenth Amendment and the
The facts, as found by the appeal tribunal and accepted by the state Superior Court and Supreme
APPEAL from a judgment upholding the constitutionality of a state unemployment compensation Court, are not in dispute. Appellant is a Delaware corporation, having its principal place of business
statute as applied to the appellant corporation. in St. Louis, Missouri, and is engaged in the manufacture and sale of shoes and other footwear. It
maintains places of business in several states other than Washington, at which its manufacturing is
carried on and from which its merchandise is distributed interstate through several sales units or
MR. CHIEF JUSTICE STONE delivered the opinion of the Court. branches located outside the State of Washington.
Appellant has no office in Washington, and makes no contracts either for sale or purchase of Appellant also insists that its activities within the state were not sufficient to manifest its "presence"
merchandise there. It maintains no stock of merchandise in that state, and makes there no deliveries there, and that, in its absence, the state courts were without jurisdiction, that, consequently, it was
of goods in intrastate commerce. During the years from 1937 to 1940, now in question, appellant a denial of due process for the state to subject appellant to suit. It refers to those cases in which it
employed eleven to thirteen salesmen under direct supervision and control of sales managers was said that the mere solicitation of orders for the purchase of goods within a state, to be accepted
located in St. Louis. These salesmen resided in Washington; their principal activities were confined without the state and filled by shipment of the purchased goods interstate, does not render the
to that state, and they were compensated by commissions based upon the amount of their sales. corporation seller amenable to suit within the state. See Green v. Chicago, B. & Q. R. Co., 205 U. S.
The commissions for each year totaled more than $31,000. Appellant supplies its salesmen with a 530, 205 U. S. 533; International Harvester Co. v. Kentucky, supra, 234 U. S. 586-587; Philadelphia &
line of samples, each consisting of one shoe of a pair, which they display to prospective purchasers. Reading R. Co. v. McKibbin, 243 U. S. 264, 243 U. S. 268; People's Tobacco Co. v. American Tobacco
On occasion, they rent permanent sample rooms, for exhibiting samples, in business buildings, or Co., supra, 246 U. S. 87. And appellant further argues that, since it was not present within the state,
rent rooms in hotels or business buildings temporarily for that purpose. The cost of such rentals is it is a denial of due process to subject it to taxation or other money exaction. It thus denies the
reimbursed by appellant. power of the state to lay the tax or to subject appellant to a suit for its collection.
The authority of the salesmen is limited to exhibiting their samples and soliciting orders from Historically, the jurisdiction of courts to render judgment in personam is grounded on their de facto
prospective buyers, at prices and on terms fixed by appellant. The salesmen transmit the orders to power over the defendant's person. Hence, his presence within the territorial jurisdiction of a court
appellant's office in St. Louis for acceptance or rejection, and, when accepted, the merchandise for was prerequisite to its rendition of a judgment personally binding him. Pennoyer v. Neff, 95 U. S.
filling the orders is shipped f.o.b. from points outside Washington to the purchasers within the state. 714, 95 U. S. 733. But now that the capias ad respondendum has given way to personal service of
All the merchandise shipped into Washington is invoiced at the place of shipment, from which summons or other form of notice, due process requires only that, in order to subject a defendant
collections are made. No salesman has authority to enter into contracts or to make collections. to a judgment in personam, if he be not present within the territory of the forum, he have certain
minimum contacts with it such that the maintenance of the suit does not offend "traditional notions
The Supreme Court of Washington was of opinion that the regular and systematic solicitation of of fair play and substantial justice." Milliken v. Meyer, 311 U. S. 457, 311 U. S. 463. See Holmes, J.,
orders in the state by appellant's salesmen, resulting in a continuous flow of appellant's product in McDonald v. Mabee, 243 U. S. 90, 243 U. S. 91. Compare Hoopeston Canning Co. v. Cullen, 318 U.
into the state, was sufficient to constitute doing business in the state so as to make appellant S. 313, 318 U. S. 316, 318 U. S. 319. See Blackmer v. United States, 284 U. S. 421; Hess v. Pawloski,
amenable to suit in its courts. But it was also of opinion that there were sufficient additional 274 U. S. 352; Young v. Masci, 289 U. S. 253. ,
activities shown to bring the case within the rule, frequently stated, that solicitation within a state
by the agents of a foreign corporation plus some additional activities there are sufficient to render Since the corporate personality is a fiction, although a fiction intended to be acted upon as though
the corporation amenable to suit brought in the courts of the state to enforce an obligation arising it were a fact, Klein v. Board of Supervisors, 282 U. S. 19, 282 U. S. 24, it is clear that, unlike an
out of its activities there. International Harvester Co. v. Kentucky, 234 U. S. 579, 234 U. S. 587; individual, its "presence" without, as well as within, the state of its origin can be manifested only by
People's Tobacco Co. v. American Tobacco Co., 246 U. S. 79, 246 U. S. 87; Frene v. Louisville Cement activities carried on in its behalf by those who are authorized to act for it. To say that the corporation
Co., 77 U.S.App.D.C. 129, 134 F.2d 511, 516. The court found such additional activities in the is so far "present" there as to satisfy due process requirements, for purposes of taxation or the
salesmen's display of samples sometimes in permanent display rooms, and the salesmen's maintenance of suits against it in the courts of the state, is to beg the question to be decided. For
residence within the state, continued over a period of years, all resulting in a substantial volume of the terms "present" or "presence" are used merely to symbolize those activities of the corporation's
merchandise regularly shipped by appellant to purchasers within the state. The court also held that agent within the state which courts will deem to be sufficient to satisfy the demands of due process.
the statute, as applied, did not invade the constitutional power of Congress to regulate interstate L. Hand, J., in Hutchinson v. Chase & Gilbert, 45 F.2d 139, 141. Those demands may be met by such
commerce, and did not impose a prohibited burden on such commerce. contacts of the corporation with the state of the forum as make it reasonable, in the context of our
federal system of government, to require the corporation to defend the particular suit which is
Appellant's argument, renewed here, that the statute imposes an unconstitutional burden on brought there. An "estimate of the inconveniences" which would result to the corporation from a
interstate commerce need not detain us. For 53 Stat. 1391, 26 U.S.C. § 1606(a) provides that trial away from its "home" or principal place of business is relevant in this connection. Hutchinson
v. Chase & Gilbert, supra, 141.
"No person required under a State law to make payments to an unemployment fund shall be
relieved from compliance therewith on the ground that he is engaged in interstate or foreign "Presence" in the state in this sense has never been doubted when the activities of the corporation
commerce, or that the State law does not distinguish between employees engaged in interstate or there have not only been continuous and systematic, but also give rise to the liabilities sued on,
foreign commerce and those engaged in intrastate commerce." even though no consent to be sued or authorization to an agent to accept service of process has
been given. St. Clair v. Cox, 106 U. S. 350, 106 U. S. 355; Connecticut Mutual Co. v. Spratley, 172 U.
S. 602, 172 U. S. 610-611; Pennsylvania Lumbermen's Ins. Co. v. Meyer, 197 U. S. 407, 197 U. S. 414-
It is no longer debatable that Congress, in the exercise of the commerce power, may authorize the
415; Commercial Mutual Co. v. Davis, 213 U. S. 245, 213 U. S. 255-256; International Harvester Co.
states, in specified ways, to regulate interstate commerce or impose burdens upon it. Kentucky
v. Kentucky, supra; cf. St. Louis S.W. R. Co. v. Alexander, 227 U. S. 218. Conversely, it has been
Whip & Collar Co. v. Illinois Central R. Co., 299 U. S. 334; Perkins v. Pennsylvania, 314 U.S. 586;
generally recognized that the casual presence of the corporate agent, or even his conduct of single
Standard Dredging Corp. v. Murphy, 319 U. S. 306, 319 U. S. 308; Hooven & Allison Co. v. Evatt, 324
or isolated items of activities in a state in the corporation's behalf, are not enough to subject it to
U. S. 652, 324 U. S. 679; Southern Pacific Co. v. Arizona, 325 U. S. 761, 325 U. S. 769.
suit on causes of action unconnected with the activities there. St. Clair v. Cox, supra, 106 U. S. 359,
106 U. S. 360; Old Wayne Life Assn. v. McDonough, 204 U. S. 8, 204 U. S. 21; Frene v. Louisville
Cement Co., supra, 515, and cases cited. To require the corporation in such circumstances to defend Applying these standards, the activities carried on in behalf of appellant in the State of Washington
the suit away from its home or other jurisdiction where it carries on more substantial activities has were neither irregular nor casual. They were systematic and continuous throughout the years in
been thought to lay too great and unreasonable a burden on the corporation to comport with due question. They resulted in a large volume of interstate business, in the course of which appellant
process. received the benefits and protection of the laws of the state, including the right to resort to the
courts for the enforcement of its rights. The obligation which is here sued upon arose out of those
While it has been held, in cases on which appellant relies, that continuous activity of some sorts very activities. It is evident that these operations establish sufficient contacts or ties with the state
within a state is not enough to support the demand that the corporation be amenable to suits of the forum to make it reasonable and just, according to our traditional conception of fair play and
unrelated to that activity, Old Wayne Life Assn. v. McDonough, supra; Green v. Chicago, B. & Q. R. substantial justice, to permit the state to enforce the obligations which appellant has incurred there.
Co., supra; Simon v. Southern R. Co., 236 U. S. 115; People's Tobacco Co. v. American Tobacco Co., Hence, we cannot say that the maintenance of the present suit in the State of Washington involves
supra; cf. Davis v. Farmers Co-operative Co., 262 U. S. 312, 262 U. S. 317, there have been instances an unreasonable or undue procedure.
in which the continuous corporate operations within a state were thought so substantial and of such
We are likewise unable to conclude that the service of the process within the state upon an agent
a nature as to justify suit against it on causes of action arising from dealings entirely distinct from
whose activities establish appellant's "presence" there was not sufficient notice of the suit, or that
those activities. See Missouri, K. & T. R. Co. v. Reynolds, 255 U.S. 565; Tauza v. Susquehanna Coal
the suit was so unrelated to those activities as to make the agent an inappropriate vehicle for
Co., 220 N.Y. 259, 115 N.E. 915; cf. St. Louis S.W. R. Co. v. Alexander, supra.
communicating the notice. It is enough that appellant has established such contacts with the state
Finally, although the commission of some single or occasional acts of the corporate agent in a state that the particular form of substituted service adopted there gives reasonable assurance that the
sufficient to impose an obligation or liability on the corporation has not been thought to confer notice will be actual. Connecticut Mutual Co. v. Spratley, supra, 172 U. S. 618, 172 U. S. 619; Board
upon the state authority to enforce it, Rosenberg Bros. & Co. v. Curtis Brown Co., 260 U. S. 516, of Trade v. Hammond Elevator Co., 198 U. S. 424, 198 U. S. 437-438; Commercial Mutual Co. v. Davis,
other such acts, because of their nature and quality and the circumstances of their commission, may supra, 213 U. S. 254-255. Cf. Riverside Mills v. Menefee, 237 U. S. 189, 237 U. S. 194, 237 U. S. 195;
be deemed sufficient to render the corporation liable to suit. Cf. Kane v. New Jersey, 242 U. S. 160; See Knowles v. Gaslight & Coke Co., 19 Wall. 58, 86 U. S. 61; McDonald v. Mabee, supra; Milliken v.
Hess v. Pawloski, supra; Young v. Masci, supra. True, some of the decisions holding the corporation Meyer, supra. Nor can we say that the mailing of the notice of suit to appellant by registered mail
amenable to suit have been supported by resort to the legal fiction that it has given its consent to at its home office was not reasonably calculated to apprise appellant of the suit. Compare Hess v.
service and suit, consent being implied from its presence in the state through the acts of its Pawloski, supra, with McDonald v. Mabee, supra, 243 U. S. 92, and Wuchter v. Pizzutti, 276 U. S. 13,
authorized agents. Lafayette Insurance Co. v. French, 18 How. 404, 59 U. S. 407; St. Clair v. Cox, 276 U. S. 19, 276 U. S. 24; cf. Becquet v. MacCarthy, 2 B. & Ad. 951; Maubourquet v. Wyse, 1
supra, 106 U. S. 356; Commercial Mutual Co. v. Davis, supra, 213 U. S. 254; Washington v. Superior Ir.Rep.C.L. 471. See Washington v. Superior Court, supra, 289 U. S. 365.
Court, 289 U. S. 361, 289 U. S. 364-365. But, more realistically, it may be said that those authorized
Only a word need be said of appellant's liability for the demanded contributions to the state
acts were of such a nature as to justify the fiction. Smolik v. Philadelphia & Reading Co., 222 F. 148,
unemployment fund. The Supreme Court of Washington, construing and applying the statute, has
151. Henderson, The Position of Foreign Corporations in American Constitutional Law, 94-95.
held that it imposes a tax on the privilege of employing appellant's salesmen within the state
It is evident that the criteria by which we mark the boundary line between those activities which measured by a percentage of the wages, here, the commissions payable to the salesmen. This
justify the subjection of a corporation to suit and those which do not cannot be simply mechanical construction we accept for purposes of determining the constitutional validity of the statute. The
or quantitative. The test is not merely, as has sometimes been suggested, whether the activity, right to employ labor has been deemed an appropriate subject of taxation in this country and
which the corporation has seen fit to procure through its agents in another state, is a little more or England, both before and since the adoption of the Constitution. Steward Machine Co. v. Davis, 301
a little less. St. Louis S.W. R. Co. v. Alexander, supra, 227 U. S. 228; International Harvester Co. v. U. S. 548, 301 U. S. 579, et seq. And such a tax imposed upon the employer for unemployment
Kentucky, supra, 234 U. S. 587. Whether due process is satisfied must depend, rather, upon the benefits is within the constitutional power of the states. Carmichael v. Southern Coal Co., 301 U. S.
quality and nature of the activity in relation to the fair and orderly administration of the laws which 495, 301 U. S. 508, et seq.
it was the purpose of the due process clause to insure. That clause does not contemplate that a Appellant having rendered itself amenable to suit upon obligations arising out of the activities of its
state may make binding a judgment in personam against an individual or corporate defendant with salesmen in Washington, the state may maintain the present suit in personam to collect the tax laid
which the state has no contacts, ties, or relations. Cf. Pennoyer v. Neff, supra; Minnesota upon the exercise of the privilege of employing appellant's salesmen within the state. For
Commercial Assn. v. Benn, 261 U. S. 140. Washington has made one of those activities which, taken together, establish appellant's
"presence" there for purposes of suit the taxable event by which the state brings appellant within
But, to the extent that a corporation exercises the privilege of conducting activities within a state,
the reach of its taxing power. The state thus has constitutional power to lay the tax and to subject
it enjoys the benefits and protection of the laws of that state. The exercise of that privilege may give
appellant to a suit to recover it. The activities which establish its "presence" subject it alike to
rise to obligations, and, so far as those obligations arise out of or are connected with the activities
taxation by the state and to suit to recover the tax. Equitable Life Society v. Pennsylvania, 238 U. S.
within the state, a procedure which requires the corporation to respond to a suit brought to enforce
143, 238 U. S. 146; cf. International Harvester Co. v. Department of Taxation, 322 U. S. 435, 322 U.
them can, in most instances, hardly be said to be undue. Compare International Harvester Co. v.
S. 442, et seq.; Hoopeston Canning Co. v. Cullen, supra, 318 U. S. 316-319; see General Trading Co.
Kentucky, supra, with Green v. Chicago, B. & Q. R. Co., supra, and People's Tobacco Co. v. American
v. Tax Comm'n, 322 U. S. 335.
Tobacco Co., supra. Compare Connecticut Mutual Co. v. Spratley, supra, 172 U. S. 619, 172 U. S. 620,
and Commercial Mutual Co. v. Davis, supra, with Old Wayne Life Assn. v. McDonough, supra. See 29 Affirmed.
Columbia Law Review, 187-195.
Resident Marine Mammals of the Protected Seascape Tañon Strait vs. Reyes