Sc Bar Exam - Personal Jurisdiction

Front 1

What is Personal Jurisdiction (PJDX)

Back 1

Personal jdx is the power of a court issue a judgment over the person or the property, based on the defendant's contacts with the court

same rules apply for federal court as state court

Federal Rules of Civil Procedure and SC Code of Civil Procedure govern

Front 2

3 Major Consequences to a court having personal jdx

Back 2

Judgement may be satisfied by any property owned by the defendant

Res judicata - once the issue has been decided it will be precluded from arising agin

Judgment will be entitled to full faith and credit in other states

Front 3

Assertion must be proper

Back 3

The SC long-arm provision must apply

Federal requirements - assertion of personal jdx by a state must satisfy Federal Due Process requirements

Front 4

Two Types of Personal JDX

Back 4

General - defendant has an enduring relationship with SC - in personam jdx exists regardless of whether the claim arose in SC or relates to defendant's conduct in SC

Specific - LONG-ARM statute - cause of action arises from Defendant's contacts with or actions affecting the state of SC

Front 5

General Personal JDX - State law side

Back 5

General personal JDX - Defendant has an enduring relationship with SC (domiciled, organized, doing business, or principal place of business)

If there is an enduring relationship, the Defendant may be sued in SC regardless of where the cause arose

If cause arose out of Defendant's conduct in or related to SC > specific jurisdiction

Front 6

General Personal JDX - Fed law side

Back 6

Due Process consideration - Substantiall systematic and continuous test

Defendant's connections to state are so substantial that defendant would expect to be subject to suit there on any claim and would suffer no inconvenience defending there

Front 7

Specific Personal JDX - State law side

Back 7

SC Long-arm statute - has been interpreted to 'reach the limits of due process'
(*note if in Federal court - the analysis collapses into one Due Process inquiry)

Long-Arm statute - court may exercise personal jurisdiction over a person who acts directly or by an agent as to a cause of action arising from (8 things in SC):
- transacting business
- contracting to supply services or things
- Tortious act within state
- causing tortious injury or death by act outside if regularly conducting or soliciting business, persistent course of conduct, or deriving revenue
- having interest in, using, or possessing real property
- insuring a risk
- entering into a contract to be performed
- production, manufacture, or distribution of goods with reasonable expectation that goods will be used or consumed in sc

Front 8

Specific Personal JDX - fed law side

Back 8

Due Process = Minimum contacts + Fair play and substantial justice

Front 9

Minimum Contacts

Back 9

Part 1 of the federal due process analysis for specific personal jurisdiction

"Whether nonresident Defendant has sufficient minimum contacts with state"

MEET ONE >

Did Defendant purposefully direct activities at, or establish contact with SC?

Were the activities/contacts sufficient to invoke protections and benefits of SC law?

Were the activities/contacts sufficient to reasonably anticipate litigation in SC?

If any of these are met, Minimum Contacts will be established and proper jdx presumed

Front 10

Fair Play and Substantial Justice

Back 10

Prong 2 of Fed Due Process specific personal jdx analysis

Is asserting specific personal jurisdiction fair?

Consider
- burden on nonresident Defendant
- adjudicative interest of SC
- plaintiff interest in convenient and effective relief
- systemic interest in national judicial system in resolving controversy
- systemic interest of states in furthering substantive social policies

only a strong showing of unfairness will defeat Minimum Contacts

Front 11

Stream of commerce minimum contacts

Back 11

placement of a product into the stream of commerce without more does NOT show that defendant 'purposefully' directed his activities at forum state.

Front 12

Effect Test

Back 12

aiming intentional conduct at a state when it is reasonably foreseeable that the target will suffer harm there means Defendant should reasonably anticipate litigation there

Front 13

Forum Selection Clauses

Back 13

Valid under federal and SC law

Personal jdx can be based solely on a nonresident's consent to jdx in this state in a forum selection clause (particularly with sophisticated parties)

clauses do not apply when action is not solely for normal breach of contract, but rather for fraud in the inducement, misrepresentation, and violation of unfair trade practices

Front 14

Full faith and credit

Back 14

personal jdx in forum state is presumed if judgment of record of court of general jdx

Front 15

Cockrell v. Hillerich & Bradsby (SC 2005)

Back 15

Massachusett company had a testing lab to certify baseball bats

6000+ students used these bats in SC

Plaintiff was struck by another player using the bat

S.Ct. held - D did not purposefully avail themselves to SC law > no minimum contacts