Court Opinion

ID: 9493620
Source: CourtListenerOpinion
Date Created: 2023-08-05 15:13:31.396128+00
Date Added: 2024-06-11T17:55:56.221538
License: Public Domain

BRIGHT, Circuit Judge,
concurring.
I concur in the result only.
I do not agree with the stream of commerce theory of the majority. Initially the Swedish manufacturer, Linden-Alimak AB, shipped the construction hoist F.O.B. Swedish port to the Pacific Northwest in the United States. The hoist apparently came into Missouri via a contractor. The application of the stream of commerce theory would subject a foreign entity to suit in any state of the Union where the product ended up, regardless of the original destination for the article or how the particular product happened to be in a particular place in any state.
I believe, however, that the defendant through its subsidiaries was subject to jurisdiction because those subsidiaries were doing business in Missouri. Its subsidiaries, Linden-Alimak Inc. and Alimak Inc., were incorporated in the State of Connecticut. They both held certificates of authority to conduct business in the State of Missouri. They employed sales representatives to cover multi-state territories. These sales representatives sold their companies’ products in Missouri.
Courts in the Eighth Circuit have held that they can only assert personal jurisdiction over a foreign parent corporation based on the activities of its resident subsidiary when the parent corporation dominates and controls the subsidiary to the point that the two companies no longer maintain corporate formalities. See Lakota Girl Scout Council, Inc. v. Havey Fund-Raising Mgmt., Inc., 519 F.2d 634, 638 (8th Cir.1975). The district court in the instant case found that the Clunes have not produced any evidence to show that Industrivarden controlled, or had any influence over, its distributors’ and subsidiaries’ marketing and sales decisions. The district court also noted that the Clunes *547failed to show that the distributors and subsidiaries were selling in Missouri under the expectations of Industrivarden. Therefore, the district court refused to base jurisdiction over Industrivarden on the activities of its distributors and subsidiaries.
The district court ignored evidence that suggests that Industrivarden exercised control over its subsidiaries’ marketing and sales decisions. Industrivarden produced sales brochures which were distributed to residents and consumers in Missouri by its distributors and subsidiaries. At least three members of the subsidiary’s board of directors were also directors of the foreign manufacturer. Pursuant to Missouri law, Mo.Rev.Stat. § 351.310 (1986), these directors of the subsidiary “controlled and managed” the business of the subsidiary. These directors made no effort to exclude Missouri from its United States sales. At least two of the directors of the subsidiary were also officers of the foreign manufacturer. Courts have found that to be an important factor in determining whether there are sufficient minimum contacts. See Hawes v. Honda Motor Co., Ltd., 738 F.Supp. 1247, 1251 (E.D.Ark. 1990). Under Missouri law, a corporation is charged with the knowledge of its officers and agents. Iota Mgmt. Corp. v. Boulevard Inv. Co., 731 S.W.2d 399, 410 (Mo.App.1987). Consequently, the foreign manufacturer had knowledge, through its officers and directors, of all of its subsidiary’s contacts, sales, and marketing.
Because of the absence of evidence regarding the issue, I do not here hold that the foreign manufacturer and its subsidiaries are so tightly related that the subsidiaries are mere alter-egos of the parent. Rather, I simply refer to the relationship to support our conclusion that without the existence of its subsidiaries, Industrivar-den would not be able to distribute its product in the United States. This connection between the foreign manufacturer and the resident subsidiary represents more than simply placing a product into the stream of commerce,