Document: 444 U.S. 320 100 S.Ct. 571 62 L.Ed.2d 516 Randal RUSH et al., Appellants,v.Jeffrey D. SAVCHUK. No. 78-952. Argued Oct. 3, 1979. Decided Jan. 21, 1980. Syllabus While a resident of Indiana, appellee was injured in an accident Indiana while riding as passenger car driven by appellant Rush, also resident. After moving to Minnesota, commenced this action against Rush Minnesota state court, alleging negligence and seeking damages. As had no contacts with that would support personam jurisdiction, attempted obtain quasi rem jurisdiction garnishing the contractual obligation State Farm Mutual Automobile Insurance Co. (State Farm) defend indemnify connection such suit. Farm, which does business insured car, owned Rush's father, under liability insurance policy issued Indiana. personally served after Farm's response garnishment summons asserted it owed defendant nothing, moved trial court for permission file supplemental complaint making garnishee, party action. dismiss lack over defendant. The denied motion granted leave complaint. Supreme Court affirmed, ultimately holding assertion statute complied due process standards enunciated Shaffer v. Heitner, 433 186, 97 2569, 53 683. Held: A may not constitutionally exercise who has forum attaching insurer licensed do him Pp. 327-333. (a) absent only if certain minimum maintenance suit offend traditional notions fair play substantial justice. International Shoe Washington, 326 310, 66 154, 90 L.Ed. 95. In determining whether particular state-court is consistent process, inquiry must focus on "the relationship among defendant, forum, litigation." supra, at 204, 2579. P. 327. (b) Here, affiliating circumstance offered show lawsuit company State. However, fictional presence Rush—derived from combining legal fiction assigns situs debt, purposes, wherever debtor found corporation "present," jurisdictional cannot be deemed give power determine out-of-state accident. mere property establish sufficient between owner unrelated cause action, said engaged any purposeful activity related make fair, just, or reasonable merely because his there. Nor provide significant litigation obligations pertain conduct, substance, litigation. 327-330. (c) Moreover, requisite established alternative approach attributing insurer's treating attachment procedure functional equivalent direct insurer, considering "nominal defendant" order insurer. State's ability exert its analytically prerequisite entry into case Constitution forbids based policy, then there conceptual basis bringing "garnishee" attribute "defending parties" together aggregating their jurisdiction. parties' relationships each other evaluating ties but requirements met whom exercises 330-332. Minn., 272 N.W.2d 888, reversed. Oscar C. Adamson, II, Minneapolis, appellants. Edward H. Borkon, appellee. Mr. Justice MARSHALL delivered opinion Court. 1 This appeal presents question 2 * On January 13, 1972, two residents were involved single-car Elkhart, Ind. Appellee Savchuk, injured. Indiana's guest have barred claim Savchuk. Ind.Code § 9-3-3-1 (1976). 3 Savchuk parents June 1973.1 May 28, 1974, he courts.2 suit.3 Minnesota.4 alleged sought $125,000 damages.5 4 provided statute, nothing.6 defendant.7 5 appeal, affirmed court's decision. 311 Minn. 480, 245 624 (1976) (Savchuk I ). It held, first, nonresident automobile garnishable res purpose obtaining when incident giving rise occurs outside plaintiff filed. Second, held constitutional notice opportunity defend, limited amount used residents. expressly recognized voluntary justify found, however, considerations fairness supported controls defense case, regulated State, interest protecting providing them litigate claims. 6 appealed We vacated judgment remanded further consideration light 683 (1977). 902, 2964, 1086 7 remand, through Shaffer. 888 (1978) II differed Delaware stock sequestration unconstitutional garnished intimately paralleled "facilitating recoveries plaintiffs." N.W.2d, 891.8 followed. 8 embodies rule stated Seider Roth, 17 N.Y.2d 111, 269 N.Y.S.2d 99, 216 N.E.2d 312 (1966), debt subject law State.9 upheld challenge Simpson Loehmann, 21 305, 287 633, 234 669 (1967), reargument denied, 990, 290 914, 238 319 (1968). New York relied Harris Balk, 198 215, 25 625, 49 1023 (1905), permitquasi concluded permissible Due Process Clause because, "[v]iewed realistically, present full control litigation" "where it, continuing relation controversy." N.Y.S.2d, 311, 637, N.E.2d, 672. 9 United States Appeals Second Circuit gave approval Minichiello Rosenberg, 410 F.2d 106, adhered en banc, 117 (1968), cert. 396 844, 69, 24 94 (1969), although slightly different rationale. Judge Friendly construed "in effect judicially created statute. doing considered real viewed simply conduit, named getting insurer." F.2d, 109, see Donawitz Danek, 42 138, 142, 397 592, 594, 366 253, 255 could enact restriction coverage made policyholder's personal stake so slight did process. 10 continued adhere Seider.10 Hampshire followed resides jurisdiction,11 cases.12 adopted -type jurisdiction.13 recently reaffirmed conclusion violate reconsidering doctrine Heitner. O'Connor Lee-Hy Paving Corp., 579 194, 439 1034, 99 638, 58 696 (1978). III 11 Heitner we "all assertions evaluated according set forth progeny." U.S., 212, S.Ct., 2584. That is, "certain [the forum] 'traditional justice.' " 316, 158, 95 (1945). 2580. 12 conceded never auto occurred Minnesota. constructed ingenious theory permit command appear courts factor alone. claims treated Rush. combined yield located purposes accident.14 13 ownership contact suggest ties. 209, 2582. Jurisdiction lacking, unless are satisfy standard Shoe. 14 fact defendant's suggests record supplies evidence any. decision completely adventitious far concerned. He decision, unlikely expected buying subjected himself potential future might decide move. short, reasonable, Kulko California Superior Court, 436 84, 93-94, 98 1690, 1697-98, 56 132 (1978); Hanson Denckla, 357 235, 78 1228, 1239, 1283 (1958), 15 forum. view important process.15 matter nor operative facts arrangements substance litigation, accordingly affect they demonstrate 16 fact, fictitious not, without more, concluding sense insured. To say "a follows debtor" intangible actual situs, sued debtor. "found," business, all 50 District Columbia. Under appellee's theory, "debt" "present" those jurisdictions simultaneously. apparent "contact" can significance. An finding cases, referred Court,16 views both whose even defendant." Because amount, incurs liability,17 satisfied proceeds available than paying claims, practical unfair company. 18 actions actions, however.18 garnishee. If reached party, ignored.19 assumption self-evident.20 19 jurisdiction.21 result solely activities Farm. Such plainly unconstitutional. Naturally, Shoe, 20 justifications share common characteristic: shift plaintiff, attributed taken out anticipation interests regulating companies substituted subtle most evident decisions limiting ground permitting nonresidents avail themselves unconstitutional.22 words, plaintiff's decisive rights violated. forbidden progeny. cognizable variety factors relating relevant determination comport "traditional justice." See McGee Life Ins. Co., 355 220, 199, 223 (1957); cf. 98-101, 1700-1701. "does contemplate binding . individual corporate contacts, ties, relations." 319, 160. therefore, 22 Reversed. 23 STEVENS, dissenting. notes, Ante, 322. 683, precludes attached follow, appellant's since carrier specifically contracted very instituted kind authorizing correctly characterized "functional equivalent" so-called direct-action impact insurer.* believe valid applied brought resident, Watson Employers Liability Assurance 348 66, 72, 75 166, 169, 74, occur 106 (CA2 1968), 94, long understood whatsoever understood, makes difference own name or, provides, guise 26 testify generally cooperate lawsuit, my understanding compel contempt otherwise. formally entered executed policy. opinion, use individual—for example, collateral-estoppel later arising same Accord, 112; Note, Constitutionality Roth Colum.L.Rev. 409, 418-419 But now faced problem concerning personally. am therefore led Federal require Pennsylvania filed 2-year limitations run. 891, n. Stat. 571.41, subd. (1978), provides part: "Notwithstanding anything contrary herein contained, recovery money issue garnishee before therein following instances only: "(b) shall issuance summons, appropriate either sheriff service more 30 days signed, if, upon application that: "(2) individual, foreign corporation, partnership association. "(3) parties contract suretyship, guarantee, insurance, respond person main cited version enacted 1976, time original I), differ respect. Illinois States, Columbia, several Canadian Provinces. Almanac 431-432 prayer reduced voluntarily $50,000, face 571.495 requires disclose Section 571.51 "[I]n cases where denies liability, creditor move discharged, latter setting charge him; and, probable shown, granted. ." Minn.Stat. party-garnishee subject-matter insufficiency apply comparative law, rather contributory rule. Schwartz Consolidated Freightways 300 487, 221 665 (1974). Appellants assert decline tried Juris. Statement 10, 2; 891-892. constitutionality choice-of-law these circumstances us. Cf. Home Dick, 281 397, 338, 74 926 (1930). 891. Baden Staples, 45 889, 808, 383 110 declined, plaintiffs. 253 Forbes Boynton, 113 N.H. 617, 313 A.2d 129 (1973). Rocca Kenney, 1057, 381 330 Camire Scieszka, 116 281, 358 practice been rejected, grounds, Belcher Government Employees 282 Md. 718, 387 770 Javorek Cal.3d 629, 131 Cal.Rptr. 768, 552 P.2d 728 (1976); Hart Cote, 145 N.J.Super. 420, 367 1219 (Law Div.1976); Grinnell Garrett, 295 So.2d 496 (La.App.1974); Johnson Farmers Alliance 499 1387 (Okl.1972); ex rel. Lasky, 454 S.W.2d 942 (Mo.App.1970); Howard Allen, 254 S.C. 455, 176 S.E.2d 127 (1970); De Rentiis Lewis, R.I. 240, 258 464 (1969); Housley Anaconda Utah 2d 124, 427 390 (1967); Jardine Donnelly, 413 Pa. 474, 513 (1964). Tessier 458 1299 (CA1 1972); Kirchman Mikula, 443 816 (CA5 1971); Robinson O. F. Shearer & Sons, 429 83 (CA3 1970); Sykes Beal, 392 F.Supp. 1089 (Conn.1975); Ricker Lajoie, 314 401 (Vt.1970). Assuming property, what significance explained: "In instant indemnify, theoretically separable tort independent value apart inevitably focus, [sic ] insured, practically speaking, victim." 892 (emphasis original). "practical nominal defendant," ibid., limitation plaintiffs, defending parties, state," id., 893, sustain Id., 892-893; I, 488, 629. 892; 991, 916, rejected argument amounted observing: "The sued. There nothing should 6, supra. Compare (1954), applicable injury domiciled permitted sue alone, naming 68, 4, 168, 4. extinguish dispute insuring having pay eventual pocket. whole economic costs lawsuit; noneconomic Professional malpractice integrity competence professional standing. (1977) (medical premised dismissed nonresident). Further, one easily conceive litigation—if, multiple plaintiffs aggregate excess limits, successful insurability. For reasons, adjudication reasonably de minimis. stated: "We state. lacks minimally-requisite 'contacts, relations' process." 893 added). See, e. g., Farrell Piedmont Aviation, Inc., 411 812 1969); Rintala Shoemaker, 362 1044 (Minn.1973); supra ; I. seems me possible default reputation ante, 331, 20, whatever too remote analysis case.

Category: 3