Court Opinion

ID: 9756787
Source: CourtListenerOpinion
Date Created: 2023-08-28 21:56:14.85124+00
Date Added: 2024-06-11T07:28:30.617337
License: Public Domain

Dissenting Opinion by
MURPHY, J.,
which BELL, C. J., and RAKER, J., join.
I do not agree with the majority’s holding “that the Court of Special Appeals erred in concluding that [Petitioner] had sufficient minimum contacts with the State of Maryland to support the Circuit Court’s exercise of personal jurisdiction.” In Taylor v. CSR, 181 Md.App. 363, 956 A.2d 754 (2008), the Court of Special Appeals stated:
Taylor presented evidence that the cause of action arose from CSR’s direct shipment of asbestos to the Port of Baltimore, where Smith and Anzulis were stevedores, and expert testimony that CSR would reasonably expect that its cargo of asbestos would be unloaded by stevedores at the port, who could be exposed to the asbestos if the burlap bags were ripped. Taylor also presented evidence that CSR had other contacts with Maryland unrelated to Smith’s or Anzulis’ injuries, when they advertised regularly in a United States asbestos industry magazine. CSR also mar*495keted and arranged all Australian exports of sugar and, from 1964 to 1966, $ 66.5 million dollars worth of sugar (in 2005 dollars) arrived at the Port of Baltimore from Australia.
Id. at 383-84, 956 A.2d at 766.
Unlike Camelback ski resort, CSR’s asbestos shipments are examples of purposeful directing of product to Maryland. In shipping the asbestos to the Port of Baltimore, to be first unloaded before being sent on for sale elsewhere, CSR did not just knowingly accept the benefit that would be brought through an interstate distribution of goods. CSR, instead, purposefully sent asbestos into Maryland with an expectation that it would be handled by Maryland stevedores. By doing so, CSR might reasonably have expected to be haled into court in Maryland if its asbestos shipments proved to be dangerously packaged, causing injury to the stevedores in Maryland. This does not mean, necessarily, that Maryland would have jurisdiction over a suit brought by a person who happened to be near the place where the stevedores were unloading the asbestos. Nor does it mean that Maryland would have jurisdiction in suits brought by other Maryland residents claiming injury from asbestos. The case for jurisdiction when the stevedores or their representatives are plaintiffs has the additional and significant factor that CSR knew when it shipped the asbestos that stevedores would unload the bags.
Id. at 387-88, 956 A.2d at 768. (Emphasis supplied). I agree with those statements.
In my opinion, it is of no consequence that — because of the “payment in advance” requirement in the “C. & F./C.I.F.” shipping contracts — Petitioner did not need access to Maryland courts to sue a buyer who rejected the cargo. What is of consequence, however, is that Petitioner would certainly have expected to be haled into a Maryland court by a dissatisfied buyer who rejected the goods delivered to the Port of Baltimore and sued Petitioner for breach of contract.
*496The holding of the Court of Special Appeals is actually more limited than the holdings in State ex rel. CSR Ltd. v. Mac-Queen, et al., 190 W.Va. 695, 441 S.E.2d 658 (1994) and W.R. Grace & Co. v. Ensey, 279 Ill.App.3d 1043, 216 Ill.Dec. 840, 666 N.E.2d 8 (1996), in which the Supreme Court of Appeals of West Virginia and the Appellate Court of Illinois, Third District, affirmed trial court rulings requiring CSR to defend lawsuits filed against it in those states. In each of those cases, (1) the lawsuits at issue sought to hold CSR liable for injuries resulting from “job site” exposure to braiding materials manufactured by Johns-Manville that contained asbestos purchased by Johns-Manville from CSR, (2) CSR moved to dismiss the lawsuits on the ground that it had no control over the distribution of products that Johns-Manville manufactured and thereafter shipped into the forum state, and (3) the trial court denied CSR’s motion.
In MacQueen, supra, while affirming the decision of the Circuit Court of Kanawha County (by denying CSR’s petition for writ of prohibition in which it challenged Judge Mac-Queen’s ruling on jurisdiction), the Supreme Court of Appeals of West Virginia stated:
Specifically, the plaintiffs-respondents contend that CSR sought to exploit the American market for raw asbestos by systematically and continuously selling substantial quantities (37,000 tons) of crocidolite asbestos to Johns Manville between 1948 and 1966. CSR’s own sales records, plaintiffs-respondents argue, show that CSR shipped fiber to ports in various states. Notably, CSR does not contest jurisdiction in the states to which the fiber then was routed — specifically, Johns Manville plants located in Louisiana, New Jersey, Illinois, Texas and California.1
At oral argument, it became apparent that CSR has confused jurisdictional issues with questions of CSR’s innocence of wrongdoing. In a nutshell, CSR argues that as simply a manufacturer of raw materials, it is not liable to *497the plaintiffs in this mass tort case. Unlike a manufacturer of a defective component part that caused some end product to fail, CSR contends its role was more comparable to a manufacturer of raw steel, with no control over the end product into which its raw material was incorporated.
This Court, however, is satisfied that CSR introduced a product into the stream of American commerce that it knew would be used in West Virginia.
Obviously, as the Supreme Court of the United States held in World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 294, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980), jurisdiction cannot be asserted over a defendant with which a state has no contacts, no ties and no relations. However, in the case before us, the evidence is virtually incontrovertible that CSR introduced its asbestos fibers into the stream of American commerce; CSR knew the products containing their fibers would be distributed throughout the United States; CSR had an ongoing commercial relationship with Johns Manville, the largest American manufacturer of asbestos products; and, CSR was actively engaged in the development and introduction of products that contained their raw materials. These circumstances are sufficient at this time to give our courts jurisdiction.
Id. at 660-61.
In W.R. Grace & Co., supra, while affirming the Circuit Court of Rock Island County (after the Supreme Court of Illinois entered a supervisory order that CSR be granted the right to file an interlocutory appeal), the Appellate Court of Illinois stated:
Between 1948 and 1966, CSR acted as the sales agent for its partially-owned subsidiary which mined raw asbestos fibers. CSR sold the asbestos to Manville, F.O.B. various ports in Australia. Manville then used the asbestos, along with asbestos from various other suppliers from around the world, to manufacture asbestos-containing products at its plants throughout the United States. Manville was one of *498the world’s largest manufacturers of asbestos products. The record before us establishes that CSR sold Manville 37,000 tons of crocidolite asbestos (blue fiber) from 1948 until 1966.
CSR maintains there is no evidence to support Ensey’s claim that CSR was aware that its blue fiber was coming to Illinois. In oral argument before this court, CSR claimed that if its asbestos made its way to Illinois, Manville is to blame, not CSR----We note initially that CSR has con-
fused jurisdictional issues with causation and proof issues. The jurisdictional issue before us is preliminary to, and independent of, any determination of the merits of Ensey’s claims.
The record before us supports a finding of minimum contacts. This result is obtained under any of the three Supreme Court views [in Asahi Metal Industry Co. v. Superior Court, 480 U.S. 102, 107 S.Ct. 1026, 94 L.Ed.2d 92 (1987),] discussed above. Under Justice Brennan’s analysis, it is clear that CSR introduced tons of asbestos into the stream of commerce with knowledge that it was being incorporated into products manufactured by Manville for use in Illinois and every other state. Moreover, under Brennan’s analysis, because CSR was aware that its asbestos was being sold in Illinois, it cannot claim it is an unfair surprise that it is required to defend a lawsuit in this state. Asahi, 480 U.S. at 117, 107 S.Ct. at 1034-35, 94 L.Ed.2d at 107.
Jurisdiction is also proper under Justice O’Connor’s analysis. The record before us supports the assertion that CSR did more than just place its asbestos into the stream of commerce. CSR had an on-going commercial relationship with Manville. CSR officials visited the United States to promote the use of their blue fiber, suggest new uses, and assure competitive pricing and quality. In October 1956, a CSR official attended a Manville sales conference in the United States and met with senior officers from all Manville plants. At the time, Manville had a factory in Waukegan, *499Illinois. A CSR official interviewed a number of Manville officials and received no complaints regarding the quality of CSR’s blue fiber. CSR advertised in a national trade magazine. As a result, we find ample evidence of “additional conduct” by CSR in reaching out to Illinois and promoting the sale and use of its product here.
We further conclude that the contacts mentioned above also satisfy the requirements of World-Wide. Through its ongoing and continuous relationship with Manville, nationwide advertising, and the promotion of expanded use of its asbestos, CSR sought to serve the market for its product in Illinois. As a consequence, CSR could certainly anticipate being haled into court in this forum.
After establishing that CSR has the required minimum contacts with Illinois, we must examine other relevant factors to determine whether it is reasonable and fair for our courts to exercise personal jurisdiction over CSR. Such factors may include (1) the burden on the defendant; (2) the interest of the forum state; (3) the interest of the plaintiff in obtaining relief; (4) the interest of the interstate judicial system in obtaining the most efficient relief; and (5) the interests of our sister states in furthering their own policies. Asahi, 480 U.S. at 113, 107 S.Ct. at 1032-33, 94 L.Ed.2d at 105. An analysis of the relevant factors clearly reveals that the exercise of personal jurisdiction in Illinois is reasonable and fair.
While we are mindful that CSR is a foreign corporation, the record indicates only a slight burden for CSR to defend this action in Illinois. CSR has been a party to litigation in several states and has retained local counsel. As a result, CSR is no stranger to the United States legal system. In addition, some discovery has already occurred, and documentation is available in Illinois. In contrast, Ensey’s interest in obtaining relief in Illinois is great. As CSR’s counsel conceded in oral argument before this court, Ensey would be forced to seek relief in Australia if she is not afforded the opportunity to maintain her lawsuit in Illinois. *500Clearly, such a burden on Ensey would be prohibitive. Similarly, Illinois has a great interest in providing a forum by which its citizens may seek relief from wrongs they have suffered.
Id. at 9-12.
The holding of the Court of Special Appeals is not inconsistent with the case of CSR Ltd. v. Link, 925 S.W.2d 591 (Tex.1996), in which the Supreme Court of Texas (by “conditionally” granting CSR’s petition for writ of mandamus) held that the District Court of Harris County erroneously asserted personal jurisdiction over CSR on the basis of the following facts:
On August 28, 1957, CSR sold 363 tons of raw Australian blue asbestos to Johns-Manville. CSR sold the asbestos to Johns-Manville F.O.B. Fremantle, Australia, so that title to the fiber passed to Johns-Manville when Johns-Manville loaded the fiber onto the ship in Australia. Johns-Mans-ville shipped the asbestos to Houston; the fiber was eventually used for the manufacture of transite pipe. The plaintiffs in the underlying suit allege that they were injured by exposure to CSR asbestos used to manufacture pipe.
Id. at 594. While I agree with the Supreme Court of Texas that those facts did not permit the Harris County District Court to assert either “general” or “specific” jurisdiction over CSR, the case at bar does not involve either (1) a single shipment of asbestos to the Port of Baltimore, or (2) plaintiffs who allege that they were injured by exposure to a manufactured product that contained asbestos sold by CSR. I am persuaded that the Supreme Court of Texas would not have issued a writ of mandamus if the record showed that (1) CSR had shipped to Houston the amount of asbestos and sugar that it had shipped to the Port of Baltimore, and (2) the plaintiffs were stevedores who alleged that they had been injured when unloading “CSR-labeled burlap bags containing asbestos, [under circumstances when] dust would be ‘all over the place.’ ”
While forcing Respondents to assert their claims in Australia is (in the words of the W.R. Grace & Co. Court) “prohibí*501tive,” CSR’s litigation history includes a lawsuit that it filed in the United States District Court for the District of New Jersey against various insurance companies — including Australian companies from whom CSR purchased insurance in Australia. The second amended complaint that CSR filed in that case (Civil Action No. 95-2947(HAA)) includes the following assertions:
10. Plaintiff CSR is an Australian public company with its principal place of business at Level 24, 1 O’Connell Street, Sydney 2000 Australia. CSR is a diversified company engaged in, among other things, the sugar and building materials businesses. From approximately 1948 through 1966, CSR acting as sale agent for one of its subsidiaries, sold raw asbestos fiber to certain companies (primarily Johns-Manville) located in the United States. The first delivery of such fiber to the United States took place in 1949.
* * *
27. To date, more than 116,000 Asbestos Claims have been asserted against CSR and/or CSR America in the United States as a result of alleged exposure to the fiber CSR sold to Manville or exposure to finished products allegedly manufactured by Manville with CSR’s asbestos fiber as an ingredient. CSR and/or CSR America have spent approximately $62 million to settle approximately 114,000 of those Asbestos Claims, including more than $22 million to settle more than 2,400 New Jersey Asbestos Claims principally brought against CSR by former employees at the Manville plant in Manville, Middlesex County, New Jersey. In addition, CSR and/or CSR America have spent about $22 million in attorneys’ fees and other legal expenses to defend against the Asbestos Claims. CSR and CSR America expect to spent millions more in settlement and defense costs in the future.
34. The Policies issued to CSR provide standard from “occurrence” based coverage for asbestos-related claims *502against CSR and additional insureds (including Midalco and CSR America) “anywhere in the world,” including the United States. Such coverage exists so long as one or more of the Policies was in place at any time from an underlying asbestos plaintiffs first exposure to asbestos through at least the time that plaintiff manifested an asbestos-related disease. In at least one of the Policies, to which many of the Defendant Insurers subscribed, the insurers expressly agreed to submit to the jurisdiction of any Court of competent jurisdiction in the United States, to comply with all requirements necessary to give such Court jurisdiction, and to have all matters arising under their coverage determined in accordance with the law and practice of such Court.
71. One month after the original complaint was filed in the instant litigation (the “U.S. Action”), CIGNA Australia and a number of other Defendants filed a parallel suit in Australia (the “Australian Action”), seeking a declaratory judgment that Defendants here have no liability to CSR or CSR America, as well as injunctive relief preventing Plaintiffs from pursuing the U.S. Action.
72. Although the Defendants were initially successful in enjoining prosecution of the instant litigation, the High Court of Australia, on August 5, 1997, ultimately terminated the injunction. The High Court found that the Australian Action was “vexatious and oppressive,” and had been instituted for the purpose of terminating the U.S. Action. Finding this U.S. Action to be a more appropriate forum for the claims, particularly given the U.S. antitrust issues which cannot be adjudicated in Australia, the High court stayed the Australian Action pending the outcome of this U.S. Action.
WHEREFORE, Plaintiffs request judgment against Defendants as follows:
*5032. On Count II, for declaratory and injunctive relief requiring that Defendants defend and indemnify CSR and CSR America with respect to the asbestos-related claims that have been and will continue to be filed against them in New Jersey and elsewhere in the United States[.]
In CSR Ltd. v. CIGNA Corp., 405 F.Supp.2d 526 (D.N.J. 2005), the Honorable Harold A. Ackerman ruled on motions for summary judgment on Counts III and IV of the Second Amended Complaint, but did not address Count II.
I decline to hypothesize that the Supreme Court of Appeals of West Virginia was erroneous in stating that, at oral argument in the MacQueen case, CSR’s counsel represented that “CSR does not contest jurisdiction in the states to which the fiber ... was routed” after CSR “shipped [that] fiber to ports in various states[.]” In light of that representation, and (in the words of the Court of Special Appeals) “the additional and significant factor that CSR knew when it shipped the asbestos that stevedores would unload the bags,” the conclusion that Respondents have to assert their claims in Australia strikes me as the antithesis of “fair play and substantial justice.”
Chief Judge BELL and Judge RAKER have authorized me to state that they join this dissenting opinion.

 We note that CSR made these representations at oral argument.