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Personal Jurisdiction

Assume that Andy’s Auctions, Inc. is a corporation with its principal place of business in Illinois. Mike is a proprietor of a small shop in Georgia that sells used motorcycles. Andy’s calls Mike and offers to sell Mike 25 used motorcycles he has on his auction lot. Mike signs a contract with Andy’s Auctions, Inc. to purchase the motorcycles. Mike has never been to Illinois; all of his business with Andy’s Actions, Inc. was done either online or via telephone. Mike, of course, knows that Andy’s Auctions, Inc. has its principle place of business in Illinois. When Mike receives the motorcycles, he examines them and discovers that five of the bikes are damaged and do not conform to the contract, that states the bikes will be delivered in excellent condition. Mike pays Andy for 20 bikes and refuses to pay for the five damaged bikes. Andy disagrees with Mike and files a lawsuit in the circuit court in Illinois claiming that the bikes do conform to the contract and that Mike owes him the purchase price for all 25 bikes. Mike claims

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Added on  2022-11-26

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This document discusses the issue of personal jurisdiction and explores the factors and tests used to determine whether the state of Illinois has personal jurisdiction over Mike. It covers the tests of territoriality and contacts, as well as the concepts of general and specific jurisdiction. The document also discusses the overall reasonableness jurisdiction factor and the stream of commerce factor. Based on these factors and tests, it argues that the court of Illinois does not have jurisdiction over Mike.

Personal Jurisdiction

Assume that Andy’s Auctions, Inc. is a corporation with its principal place of business in Illinois. Mike is a proprietor of a small shop in Georgia that sells used motorcycles. Andy’s calls Mike and offers to sell Mike 25 used motorcycles he has on his auction lot. Mike signs a contract with Andy’s Auctions, Inc. to purchase the motorcycles. Mike has never been to Illinois; all of his business with Andy’s Actions, Inc. was done either online or via telephone. Mike, of course, knows that Andy’s Auctions, Inc. has its principle place of business in Illinois. When Mike receives the motorcycles, he examines them and discovers that five of the bikes are damaged and do not conform to the contract, that states the bikes will be delivered in excellent condition. Mike pays Andy for 20 bikes and refuses to pay for the five damaged bikes. Andy disagrees with Mike and files a lawsuit in the circuit court in Illinois claiming that the bikes do conform to the contract and that Mike owes him the purchase price for all 25 bikes. Mike claims

   Added on 2022-11-26

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Running head: PERSONAL JURISDICTION
Personal Jurisdiction
Name of the Student
Name of the University
Author Note
Personal Jurisdiction_1
2PERSONAL JURISDICTION
Issue
The issue is to determine whether the state of Illinois is likely to have a personal
jurisdiction over Mike.
Rule
Various factors and test are required for determining the personal jurisdiction of a court.
In the USA personal jurisdiction can be of three types: In Personam jurisdiction, In Rem
jurisdiction and Quasi In Rem jurisdiction. Personal jurisdiction refers to the power of the court
for bringing people into its adjudicative ambit for enforcing a judgement upon such person. For
determining personal jurisdiction, the courts make use of different factors and tests, differing
from state to state. The tests and the factors include:
a) Territoriality:
The test of territoriality states that personal jurisdiction can only be exercised if the defendant
it is situated in the place where the suit has been filed. Therefore the defendant is to be served as
per the legal procedure of the state where he has been seized.
b) Contacts test
The Supreme Court of the United State has refined this test and has held that it is unfair for a
court to assess a party who has negligible contact with the state which holds the jurisdiction
office case. The case of International Shoe company v Washington 326 U.S. 310 (U.S. 1945) in
1945 stated that the provisions of jurisdiction do not wish to affect the traditional notions of
sustainable justice and fair play.
c) General and Specific jurisdiction
Personal Jurisdiction_2
3PERSONAL JURISDICTION
General jurisdiction test follows the principle that anyone can be sued by any Court
irrespective of the fact that whether the defendant has any contact with the prosecuting state.
Specific jurisdiction refers to the contacts of the defendant with the forum state being limited.
It is stated that the defendant avails the privilege of his conduct in the forum state on purpose,
thereby enjoying the benefits and the protection of the laws of such forum state.
d) Overall jurisdiction factor
The overall reasonableness jurisdiction factor claims that a traditional notion of fair play and
restoration of Justice should be a considering factors along with su other aspects like burden of
the defendant for defending the specific forum, the specific forum’s interest on the case and the
interest of the plaintiff pertaining to the relief.
e) Stream of commerce
The stream of commerce factor is mainly used in case of product liability where personal
jurisdiction is asserted on the basis of a company’s delivery of products into the stream of
commerce, expecting that consumers will purchase such products streamed in a different forum
and in such case the action of the defendant must be voluntary towards such forum. In
Worldwide Volkswagen corporation v Woodson 444 U.S. 286 (1980) the Supreme Court of the
United States held that when products have been brought from one jurisdiction to another by way
of the implied contract between the consumer and plaintiff, then such contact of the
consumer/defendant with the forum in question cannot be considered as voluntary or directed on
purpose.
Personal Jurisdiction_3

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