Jurisdiction and venue - Personal jurisdiction

Learning Outcomes

After reading this article, you will be able to identify when a court has personal jurisdiction over a defendant in civil cases. You will understand the statutory and constitutional requirements, including traditional bases, long-arm statutes, the minimum contacts test, and the notice requirement. You will be able to apply these principles to MBE-style questions and avoid common pitfalls.

MBE Syllabus

For MBE, you are required to understand the rules governing a court’s authority over parties. This article covers:

  • Distinguishing personal jurisdiction from subject matter jurisdiction and venue.
  • The three types of personal jurisdiction: in personam, in rem, and quasi in rem.
  • Statutory bases for personal jurisdiction, including service, domicile, consent, and long-arm statutes.
  • The constitutional minimum contacts analysis, including purposeful availment, relatedness, and fairness.
  • The requirement for proper notice to defendants.
  • The difference between general and specific jurisdiction.

Test Your Knowledge

Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.

  1. Which of the following is NOT a traditional basis for personal jurisdiction over an individual?
    1. Physical presence in the forum state when served
    2. Domicile in the forum state
    3. Consent to jurisdiction
    4. The defendant’s citizenship in a foreign country
  2. Under the minimum contacts test, which factor is LEAST relevant to whether a state court may exercise specific personal jurisdiction over a non-resident defendant?
    1. Whether the defendant purposefully availed itself of the forum
    2. Whether the claim arises from the defendant’s contacts with the forum
    3. Whether the forum state has an interest in the dispute
    4. Whether the defendant’s lawyer is licensed in the forum state
  3. Which constitutional requirement is satisfied if the method of service is reasonably calculated to inform the defendant of the action?
    1. The Full Faith and Credit Clause
    2. The notice requirement of due process
    3. The minimum contacts requirement
    4. The Equal Protection Clause

Introduction

Personal jurisdiction is the court’s power to make binding decisions over a particular defendant or property. It is distinct from subject matter jurisdiction (the court’s authority over the type of case) and venue (the geographic location for trial). For a judgment to be valid, the court must have both subject matter and personal jurisdiction.

Personal jurisdiction is governed by both statutory and constitutional rules. First, a statute (usually state law, even in federal court) must authorize jurisdiction. Second, the exercise of jurisdiction must comply with the Due Process Clause of the Constitution.

Key Term: Personal Jurisdiction The court’s authority to render a binding judgment against a particular defendant or property.

Types of Personal Jurisdiction

There are three main types:

  1. In Personam Jurisdiction: Power over the defendant personally. This allows the court to issue judgments enforceable against all of the defendant’s assets.
  2. In Rem Jurisdiction: Power over property within the forum state, to determine the rights of all persons in the world regarding that property.
  3. Quasi In Rem Jurisdiction: Power over property within the forum state to resolve disputes between specific parties, often when the property is attached to secure a claim unrelated to the property itself.

Key Term: In Personam Jurisdiction Jurisdiction over the defendant as a person, allowing the court to impose personal liability.

Key Term: In Rem Jurisdiction Jurisdiction over property to determine the rights of all persons regarding that property.

Key Term: Quasi In Rem Jurisdiction Jurisdiction over property to resolve disputes between specific parties, often unrelated to the property itself.

Statutory Bases for Personal Jurisdiction

A court must have statutory authority to exercise personal jurisdiction. The main statutory bases are:

Traditional Bases

  1. Physical Presence: Serving the defendant with process while physically present in the forum state, even if only briefly. Service by fraud or force is invalid.
  2. Domicile: A person is always subject to jurisdiction in their state of domicile, even if served elsewhere.
  3. Consent: A defendant can consent to jurisdiction by contract (e.g., forum selection clause), by appointing an agent for service, or by failing to timely object to jurisdiction in court.

Long-Arm Statutes

Most states have statutes allowing jurisdiction over non-residents based on certain acts, such as:

  • Transacting business in the state
  • Committing a tort in the state
  • Owning or using property in the state

Some long-arm statutes are “unlimited” (allowing jurisdiction to the constitutional limit), while others list specific acts.

Key Term: Long-Arm Statute A state law authorizing jurisdiction over non-residents based on their contacts or activities within the state.

Worked Example 1.1

A resident of State X sues a company incorporated and headquartered in State Y for breach of contract in State X. The company sent sales representatives to State X, negotiated the contract there, and shipped goods to State X. State X’s long-arm statute covers transacting business in the state. Does State X have statutory authority for personal jurisdiction?

Answer: Yes. The company purposefully conducted business in State X by sending representatives, negotiating, and shipping goods there. These acts fall within the long-arm statute’s coverage of transacting business in the state.

Constitutional Limitations: Due Process

Even if a statute authorizes jurisdiction, the exercise must satisfy due process. This requires both minimum contacts and proper notice.

Minimum Contacts Test

The Supreme Court’s test (from International Shoe v. Washington) asks whether the defendant has “minimum contacts” with the forum state such that the suit does not offend “traditional notions of fair play and substantial justice.” The analysis has three main parts:

1. Purposeful Availment and Foreseeability

The defendant must have purposefully availed itself of the forum state’s laws and benefits. The contact must result from the defendant’s own actions, not the unilateral acts of others.

  • Stream of Commerce: Merely placing a product in the stream of commerce is not enough unless the defendant specifically targets the forum state.
  • Internet: Interactive websites may support jurisdiction if used to conduct business with forum residents; passive websites usually do not.

Key Term: Minimum Contacts The requirement that a defendant have sufficient connections with the forum state before the state’s courts can exercise personal jurisdiction.

2. Relatedness: Specific vs. General Jurisdiction

  • Specific Jurisdiction: The claim arises out of or relates to the defendant’s contacts with the forum state.
  • General Jurisdiction: The defendant’s contacts are so continuous and systematic that the defendant is “at home” in the forum state (for individuals, domicile; for corporations, state of incorporation and principal place of business).

Key Term: Specific Jurisdiction Jurisdiction based on the defendant’s forum contacts that are directly related to the cause of action.

Key Term: General Jurisdiction Jurisdiction allowing a court to hear any claim against a defendant based on the defendant being “at home” in the forum state.

3. Fairness

Jurisdiction must also be fair. Courts consider:

  • The burden on the defendant
  • The forum state’s interest
  • The plaintiff’s interest in convenient relief
  • The judicial system’s interest in efficient resolution

Worked Example 1.2

A tire manufacturer incorporated and headquartered in State A sells tires nationwide. A tire sold in State B causes an accident in State B. The injured party sues the manufacturer in State B. The manufacturer has no offices or agents in State B, but its tires are sold there through distributors. Does State B have specific jurisdiction? Does it have general jurisdiction?

Answer: State B likely has specific jurisdiction because the claim arises from the manufacturer’s product being sold and causing harm in State B. The manufacturer purposefully availed itself of the State B market. However, State B does not have general jurisdiction because the manufacturer is not “at home” there.

Notice Requirement

Due process also requires that the defendant receive notice of the action that is “reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections.”

  • Personal service, mail, or service on an authorized agent is usually sufficient.
  • Publication alone is generally inadequate if the defendant’s address is known or can be found.

Key Term: Notice The constitutional requirement that a defendant be informed of a lawsuit in a manner reasonably likely to provide actual notice.

Worked Example 1.3

A plaintiff sues a defendant who lives in another state. The plaintiff knows the defendant’s address but serves notice by publication in a newspaper. The defendant does not appear. Is this notice constitutionally sufficient?

Answer: No. If the plaintiff knows the defendant’s address, due process requires a method of notice (such as mail or personal service) that is more likely to inform the defendant than publication alone.

In Rem and Quasi In Rem Jurisdiction

  • In Rem: The court adjudicates rights of all persons in specific property located in the forum state. Notice must meet due process standards.
  • Quasi In Rem: The court adjudicates rights between specific parties regarding property in the forum state. If the claim is unrelated to the property, the defendant must still have minimum contacts with the forum state.

Exam Warning

Courts will not exercise personal jurisdiction unless both statutory and constitutional requirements are satisfied. Do not confuse personal jurisdiction with subject matter jurisdiction or venue.

Key Point Checklist

This article has covered the following key knowledge points:

  • Personal jurisdiction is the court’s power over parties or property, distinct from subject matter jurisdiction and venue.
  • Statutory authority (e.g., long-arm statutes) and constitutional due process (minimum contacts and notice) are both required.
  • Three types: in personam, in rem, quasi in rem.
  • Traditional bases: presence, domicile, consent.
  • Long-arm statutes allow jurisdiction over non-residents based on specific acts.
  • Minimum contacts test: purposeful availment, relatedness, fairness.
  • Specific jurisdiction (claim arises from contacts) vs. general jurisdiction (defendant “at home”).
  • Notice must be reasonably calculated to inform the defendant.
  • In rem and quasi in rem jurisdiction require due process and, for quasi in rem, minimum contacts if the claim is unrelated to the property.

Key Terms and Concepts

  • Personal Jurisdiction
  • In Personam Jurisdiction
  • In Rem Jurisdiction
  • Quasi In Rem Jurisdiction
  • Long-Arm Statute
  • Minimum Contacts
  • Specific Jurisdiction
  • General Jurisdiction
  • Notice
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