Document: 480 U.S. 102 107 S.Ct. 1026 94 L.Ed.2d 92 ASAHI METAL INDUSTRY CO., LTD., Petitionerv.SUPERIOR COURT OF CALIFORNIA, SOLANO COUNTY (Cheng Shin Rubber Industrial Co., Ltd., Real Party in Interest). No. 85-693. Argued Nov. 5, 1986. Decided Feb. 24, 1987. Syllabus Petitioner manufactures tire valve assemblies Japan and sells them to several manufacturers, including Cheng Co. Shin). The sales Shin, which amounted at least 100,000 annually from 1978 1982, took place Taiwan, the were shipped Japan. incorporates into its finished tires, it throughout world, United States, where 20 percent of take California. Affidavits indicated that petitioner was aware tires incorporating would end up California, but, on other hand, never contemplated Taiwan subject lawsuits Nevertheless, 1979, a product liability suit brought California Superior Court arising motorcycle accident allegedly caused by defects manufactured turn filed cross-complaint seeking indemnification petitioner. Although main eventually settled dismissed, denied petitioner's motion quash summons issued against it. State Appeal then ordered be quashed, but Supreme reversed, finding intentional act placing stream commerce delivering coupled with awareness some reach sufficient support state court jurisdiction under Due Process Clause. Held: judgment is case remanded. 39 Cal.3d 35, 216 Cal.Rptr. 385, 702 P.2d 543, reversed 1 Justice O'CONNOR, delivered opinion as Parts I II-B, concluding court's exercise personal over unreasonable unfair violation Pp. 113-116. 2 (a) burden imposed severe, since required not only traverse distance between also submit dispute foreign judicial system. Such unique burdens should have significant weight assessing reasonableness extending national borders. 113-114. 3 (b) interests forum slight, insufficient justify heavy placed surviving question whether Japanese corporation indemnify Taiwanese bases sale made shipment goods Taiwan. facts do demonstrate more convenient for litigate claim rather than or Japan, while California's are diminished Shin's lack residence fact primarily about indemnity safety consumers. While possibility being sued might create an additional deterrent manufacture unsafe assemblies, same effect result pressures whose tort law. 114-115 4 (c) procedural substantive policies nations affected State's assertion alien defendant must taken account, great care exercised when considering international context. nations' will differ case, those interests, well Federal Government's interest relations policies, always best served careful inquiry particular jurisdiction, unwillingness find defendant's serious outweighed where, here, plaintiff minimal. P. 115. 5 joined THE CHIEF JUSTICE, POWELL, SCALIA, concluded II-A III that, even assuming, arguendo, sold incorporated establish minimum contacts render consistent fair play substantial justice Since does business, office, agents, employees, property, advertise solicit business did create, control, employ distribution system to, design anticipation in, engage any action purposely avail itself market. "substantial connection" necessary derive directed toward State, mere placement such act, if done sweep absent conduct indicating intent serve 108-113, 116. 6 BRENNAN, WHITE, MARSHALL, BLACKMUN, agreed Court's conclusion Part II-B comport "fair justice," disagreed II-A's interpretation stream-of-commerce theory, As long final marketed premised Clause, no showing required. Here, though control carried regular extensive manufacturer knew making 116-121. 7 STEVENS, WHITE reasons stated opinion, join II-A, (1) holding "unreasonable unfair" alone requires reversal, renders examination unnecessary; (2) assuming "purposeful availment" test formulated misapplies this since, dealings has arguably engaged higher quantum commerce. 121-122 8 J., announced unanimous respect I, REHNQUIST, C.J., JJ., joined, III, POWELL joined. concurring part judgment, post, p. ---. 9 Graydon Shaw Staring, San Francisco, Cal., 10 Ronald R. Haven, Sacramento, respondent. 11 O'CONNOR STEVENS join, SCALIA join. 12 This presents components manufactured, sold, outside States constitutes "minimum contacts" "does offend 'traditional notions justice.' " International Shoe v. Washington, 326 310, 316, 66 154, 158, 90 L.Ed. 95 (1945), quoting Milliken Meyer, 311 457, 463, 61 339, 342, 85 278 (1940). 13 * On September 23, 1978, Interstate Highway 80 Solano County, Gary Zurcher lost his Honda collided tractor. severely injured, passenger wife, Ruth Ann Moreno, killed. In County Solano. alleged sudden loss air explosion rear motorcycle, tire, tube, sealant defective. Zurcher's complaint named, inter alia, Ltd. Shin), tube. codefendants petitioner, Asahi Metal Industry (Asahi), tube's assembly. claims defendants leaving Asahi. 14 long-arm statute authorizes "on basis inconsistent Constitution States." Cal.Civ.Proc.Code Ann. § 410.10 (West 1973). moved service summons, arguing could exert Clause Fourteenth Amendment. 15 relation motion, following information submitted Shin. corporation. It use tubes. Asahi's shipments sent bought tubes 150,000 1978; 500,000 1979; 1980; 1981; 1982. Sales accounted 1.24 income 1981 0.44 approximately purchases suppliers well, world. 16 1983 attorney conducted informal stems one cycle store County. declared 115 store, 97 purportedly 97, 21 marked circled letter "A", apparently trademark. Of stems, contained 41 manufacturers. Declaration Kenneth B. Shepard Opposition Motion Quash Subpoena, App. Brief Respondent 5-6. An affidavit manager duties included purchasing component parts stated: 'In discussions regarding purchase stem my Company world specifically been discussed. am informed believe fully others California.' 48, n. 4, 392, 549-550, (1985). president Asahi, 'has limited valves Ibid. record include contract Tr. Oral Arg. 24. 17 Primarily above information, stating: "Asahi obviously scale. they defend defect their scale." Order Denying Summons, Dunlop Tire & 76180 (Super.Ct., Apr. 20, 1983). 18 peremptory writ mandate commanding summons. "it require respond solely ultimately realized foreseeability embodied all California." Pet. Cert. B5-B6. 19 discharged Appeal. 543 observed: offices, property agents solicits direct [in California]." Id., Cal.Rptr., P.2d, 549. Moreover, 49, found benefited indirectly products components. considered commerce—that is, Taiwan—coupled way form We granted certiorari, 475 1044, 106 1258, 89 569 (1986), now reverse. II A. Amendment limits power nonresident defendant. "[T]he constitutional touchstone" determination comports due process "remains purposefully established 'minimum contacts' State." Burger King Corp. Rudzewicz, 471 462, 474, 105 2174, 2183, 528 (1985), U.S., S.Ct., 158. Most recently we reaffirmed oft-quoted reasoning Hanson Denckla, 357 235, 253, 78 1228, 1239, 1283 (1958), "some avails privilege conducting activities within thus invoking benefits protections laws." King, 475, 2183. "Jurisdiction proper . proximately actions himself 'substantial connection' Ibid., McGee Life Insurance 355 220, 223, 199, 201, 223 (1957) (emphasis original). 22 Applying principle based defendant, World-Wide Volkswagen Woodson, 444 286, 100 559, 62 490 (1980), rejected consumer's unilateral bringing had argued because automobile retailer wholesale distributor mobile purpose, foresee haled distant customers drive. concept 295-296, 566. disclaimed, however, idea "foreseeability wholly irrelevant" "[t]he exceed powers asserts delivers expectation purchased consumers 297-298, 567 (citation omitted). reasoned: "When 'purposefully State,' [235,] 253 [78 (1958) ], clear notice there, can alleviate risk burdensome litigation procuring insurance, passing expected costs customers, or, risks too great, severing connection State. Hence simply isolated occurrence, arises efforts serve, directly indirectly, market defective merchandise there source injury owners others." 297, 567. 23 itself, sought base foreseeable consumer. Volkswagen, lower courts confronted cases acted commerce, swept nothing else Some understood interpreted allow Other above-quoted language 24 present illustrates former Volkswagen. held permit requirements position constitutionally still See Bean Dredging Dredge Technology Corp., 744 F.2d 1081 (CA5 1984); Hedrick Daiko Shoji 715 1355 (CA9 25 courts, something product's entry through order example, read "mere enter [to] enough retailer." B5. Humble Toyota Motor 727 709 (CA8 1984), injured car Arakawa Auto Body Company, seats Toyota. States; affiliate, subsidiary, agent Appeals, adopting District noted although doubt foreseen States," "manifestly unjust" States. 710-711, 578 F.Supp. 530, 533 (ND Iowa 1982). Hutson Fehr Bros., Inc., 584 833 1978); see generally Max Daetwyler 762 290, 299 (CA3 1985) (collecting "stream commerce" "manufacturers involved deliberate decisions state"). 26 latter consonant process. connection," 2184; McGee, come supra, 476, Keeton Hustler Magazine, 465 770, 774, 104 1473, 1478, 79 790 (1984). without more, Additional may indicate purpose designing advertising establishing channels providing advice marketing who But convert 27 Assuming, respondents demonstrated otherwise Cf. Hicks Kawasaki Heavy Indus tries, 452 130 (MD Pa.1978). There evidence designed Rockwell Costruzioni Aeronautiche Giovanni Agusta, 553 328 (ED Pa.1982). these facts, exertion California* exceeds B 28 strictures forbid circumstances 158; 342. 29 previously explained each depend evaluation factors. A consider plaintiff's obtaining relief. weigh "the interstate system's most efficient resolution controversies; shared furthering fundamental social policies." 292, 564 (citations 30 consideration factors clearly reveals unreasonableness apart 31 Certainly severe. commanded headquarters Solano, nation's upon oneself legal stretching arm 32 When established, often slight. All remains asserted corporation, transaction Taiwan; 33 Because resident, legitimate considerably diminished. "protecting ensuring manufacturers comply state's standards." Cal.3d, 550. definition interest, overly broad. standards. point law govern Phillips Petroleum Shutts, 472 797, 821-822, 2965, 2979-2980, 86 628 (1985); Allstate Hague, 449 302, 312-313, 101 633, 639-640, 521 (1981). involving undoubtedly creates components; similar purchasers products, sell application 34 admonished "several addition advancement policies. calls court. case. every minimal "Great reserve our field." First National City Bank, 379 378, 404, 528, 542, 365 (1965) (Harlan, dissenting). Born, Reflections Judicial Jurisdiction Cases, published Ga.J. Int'l Comp. L. (1987). 35 Considering context, slight instance unfair. 36 justice, remanded further proceedings opinion. 37 so ordered. 38 whom BLACKMUN judgment. agree nor "purposely market." Ante, 112. agree, 320, 160, (1945). rare inherent 'fair justice' defeat [though] activities." 477-478, 2184-2185, therefore write separately explain disagreement II-A. 40 states "a Under view, show "[a]dditional conduct" before need showing, however. refers unpredictable currents eddies, anticipated flow retail sale. participant lawsuit cannot surprise. Nor corresponding benefit. economically laws regulate facilitate commercial activity. These accrue regardless conducts engages Accordingly, commentators conduct.1 endorsement what appears minority view among Courts Appeals2 represents retreat analysis (1980). "respondents [sought] one, occurrence whatever inferences drawn therefrom: fortuitous circumstance single Audi automobile, New York residents, happened suffer Oklahoma." 295, Oklahoma, extent light mobility distributor. carefully explained: 42 "[T]his say, course, irrelevant. critical likelihood Rather, he reasonably anticipate there." 43 reasoned forum, unjust unfair, "can consumers, 44 To illustrate point, contrasted consumer fortuitously transports (insufficient contacts) regularly (sufficient contacts). 45 "Hence owner others. added). 46 illustration referring Gray American Radiator Standard Sanitary Ill.2d 432, 176 N.E.2d 761 (1961), well-known Illinois applied theory assert component-parts Illinois, Illinois. 47 distinguish "between chain 306-307, (BRENNAN, dissenting).3 note distinction, correctly preserved theory. C-9, 3, C-13—C-15; cf. Comment, Federalism, Process, Minimum Contacts: Colum.L.Rev. 1341, 1359-1361, nn. 140-146 48 contacts. "[a]lthough operation, benefit components." C-11.4 49 50 two reasons. First, decision. determine constitutional. 476-478, establishes, after set forth 564, unfair." reversal; fits rule 2184-2185 (quoting (1945)). reason plurality articulate direction" nexus 51 Second, ought seems assume unwavering line awareness" forum's Over course more. ." Whether rises level purposeful availment volume, value, hazardous character inclined conclude dealing results deliveries units period years constitute item standard occasion here Congress could, Fifth Amendment, authorize federal aggregate contacts, sits. 293-295 1985); DeJames Magnificence Carriers, 654 280, 283 1981); Comp.L. (1987); Lilly, Domestic Alien Defendants, 69 Va.L.Rev. 85, 127-145 (1983). See, e.g., 1983); Nelson Park Industries, 717 1120, 1126 (CA7 1983), cert. denied, 1024, 1277, 682 (1984); Stabilisierungsfonds fur Wein Kaiser Stuhl Wine Distributors Pty. 207 U.S.App.D.C. 375, 647 200, 203 (1981); Poyner Erma Werke GmbH, 618 1186, 1190-1191 (CA6), 841, 121, (1980); Fidelity Casualty Philadelphia Resins 766 440 (CA10 (endorsing inapplicable instant case), 474 1082, 853, 88 893 (1986); Montalbano Easco Hand Tools, 737 (CA2 (noting potential applicability remanding factual findings). Currie, Growth Long-Arm: Eight Years Extended 1963 U. Ill. Law Forum 533, 546-560 (approving tracing development theory); C. Wright Miller, Practice Procedure 1069, pp. 259-261 (1969) (recommending approach); Von Mehren Trautman, Adjudicate: Suggested Analysis, Harv.L.Rev. 1121, 1168-1172 (1966) (same). Appeals Eighth Circuit expressly adopted narrow construction analogous articulated today, Eleventh implicitly Banton Inc. Dimatic Die Tool 801 (CA11 1986). Two occurred appear committed adopts today. E.g., Chung NANA Development 783 1124 (CA4), 479 948, 431, 93 381 Dalmau Rodriguez Hughes Aircraft 781 (CA1 Similarly, Third O'CONNOR's arguments relationship dispute" "evidence [defendant] either [the State] totally lacking," 298, 300, 13, 980, S.Ct.383, 336 "did advantage indirect scheme," 285, 454 1085, 642, 70 620 dissent, distinction significance, customer jurisdiction. 11, 12, 584-585, 12. id., 315, (MARSHALL, dissenting) ("I necessarily lacking enters intended consumer"); 318-319, 570-571 (BLACKMUN, ("[F]oreseeable another me little different resale State"). decision per se arise given "one, [of use, amounting to] circumstance. F.2d, 1358-1359. "at supply shop assemblies," C-11, ongoing average annual hundreds thousands C-2.

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