J. McIntyre Machinery, Ltd. v. Nicastro

Procedural entryThis page is a short order in J. McIntyre Machinery, Ltd. v. Nicastro. Read the opinion of the Court — 131 S. Ct. 2780
Supreme Court of the United States·Decided June 27, 2011·No. 09-1343·Published

Opinion

(Slip Opinion) OCTOBER TERM, 2010 1

Syllabus

NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.

SUPREME COURT OF THE UNITED STATES

J. MCINTYRE MACHINERY, LTD. v. NICASTRO,

INDIVIDUALLY AND AS ADMINISTRATOR OF

THE ESTATE OF NICASTRO

CERTIORARI TO THE SUPREME COURT OF NEW JERSEY

No. 09–1343. Argued January 11, 2011—Decided June 27, 2011 Respondent Nicastro injured his hand while using a metal-shearing machine that petitioner J. McIntyre Machinery, Ltd. (J. McIntyre), manufactured in England, where the company is incorporated and operates. Nicastro filed this products-liability suit in a state court in New Jersey, where the accident occurred, but J. McIntyre sought to dismiss the suit for want of personal jurisdiction. Nicastro’s jurisdic tional claim was based on three primary facts: A U. S. distributor agreed to sell J. McIntyre’s machines in this country; J. McIntyre of ficials attended trade shows in several States, albeit not in New Jer sey; and no more than four J. McIntyre machines (the record suggests only one), including the one at issue, ended up in New Jersey. The State Supreme Court held that New Jersey’s courts can exercise ju risdiction over a foreign manufacturer without contravening the Fourteenth Amendment’s Due Process Clause so long as the manu facturer knew or reasonably should have known that its products are distributed through a nationwide distribution system that might lead to sales in any of the States. Invoking this “stream-of-commerce” doctrine of jurisdiction, the court relied in part on Asahi Metal Indus try Co. v. Superior Court of Cal., Solano Cty., 480 U. S. 102. Apply ing its test, the court concluded that J. McIntyre was subject to juris diction in New Jersey, even though at no time had it advertised in, sent goods to, or in any relevant sense targeted the State. Held: The judgment is reversed. 201 N. J. 48, 987 A. 2d 575, reversed. JUSTICE KENNEDY, joined by THE CHIEF JUSTICE, JUSTICE SCALIA, and JUSTICE THOMAS, concluded that because J. McIntyre never en 2 J. MCINTYRE MACHINERY, LTD. v. NICASTRO

gaged in any activities in New Jersey that revealed an intent to in voke or benefit from the protection of the State’s laws, New Jersey is without power to adjudge the company’s rights and liabilities, and its exercise of jurisdiction would violate due process. Pp. 4–12. (a) Due process protects the defendant’s right not to be coerced ex cept by lawful judicial power. A court may subject a defendant to judgment only when the defendant has sufficient contacts with the sovereign “such that the maintenance of the suit does not offend ‘tra ditional notions of fair play and substantial justice.’ ” International Shoe Co. v. Washington, 326 U. S. 310, 316. Freeform fundamental fairness notions divorced from traditional practice cannot transform a judgment rendered without authority into law. As a general rule, the sovereign’s exercise of power requires some act by which the defen dant “purposefully avails itself of the privilege of conducting activi ties within the forum State, thus invoking the benefits and protec tions of its laws.” Hanson v. Denckla, 357 U. S. 235, 253. In cases like this one, it is the defendant’s purposeful availment that makes jurisdiction consistent with “fair play and substantial justice” no tions. No “stream-of-commerce” doctrine can displace that general rule for products-liability cases. The rules and standards for determining state jurisdiction over an absent party have been unclear because of decades-old questions left open in Asahi. The imprecision arising from Asahi, for the most part, results from its statement of the relation between jurisdiction and the “stream of commerce.” That concept, like other metaphors, has its deficiencies as well as its utilities. It refers to the movement of goods from manufacturers through distributors to consumers, yet be yond that descriptive purpose its meaning is far from exact. A defen dant’s placement of goods into commerce “with the expectation that they will be purchased by consumers within the forum State” may indicate purposeful availment. World-Wide Volkswagen Corp. v. Woodson, 444 U. S. 286, 298. But that does not amend the general rule of personal jurisdiction. The principal inquiry in cases of this sort is whether the defendant’s activities manifest an intention to submit to the power of a sovereign. See, e.g., Hanson, supra, at 253. In Asahi, Justice Brennan’s concurrence (joined by three other Jus tices) discarded the central concept of sovereign authority in favor of fairness and foreseeability considerations on the theory that the de fendant’s ability to anticipate suit is the touchstone of jurisdiction. 480 U. S., at 117. However, Justice O’Connor’s lead opinion (also for four Justices) stated that “[t]he ‘substantial connection’ between the defendant and the forum State necessary for a finding of minimum contacts must come about by an action of the defendant purposefully directed toward the forum State.” Id., at 112. Since Asahi, the courts Cite as: 564 U. S. ____ (2011) 3

have sought to reconcile the competing opinions. But Justice Bren nan’s rule based on general notions of fairness and foreseeability is inconsistent with the premises of lawful judicial power under this Court’s precedents. Today’s conclusion that the authority to subject a defendant to judgment depends on purposeful availment is consistent with Justice O’Connor’s Asahi opinion. Pp. 4–10. (b) Nicastro has not established that J. McIntyre engaged in con duct purposefully directed at New Jersey. The company had no office in New Jersey; it neither paid taxes nor owned property there; and it neither advertised in, nor sent any employees to, the State. Indeed, the trial court found that petitioner did not have a single contact with the State apart from the fact that the machine in question ended up there. Neither these facts, nor the three on which Nicastro centered his jurisdictional claim, show that J. McIntyre purposefully availed itself of the New Jersey market. Pp. 10–12. JUSTICE BREYER, joined by JUSTICE ALITO, agreed that the New Jer sey Supreme Court’s judgment must be reversed, but concluded that because this case does not present issues arising from recent changes in commerce and communication, it is unwise to announce a rule of broad applicability without fully considering modern-day conse quences. Rather, the outcome of the case is determined by the Court’s precedents. Pp. 2–7. (a) Based on the record, respondent Nicastro failed to meet his burden to demonstrate that it was constitutionally proper to exercise jurisdiction over petitioner J. McIntyre Machinery, Ltd. (British Manufacturer). The three primary facts the state high court relied on do not satisfy due process. None of the Court’s precedents finds that a single isolated sale, even if accompanied by the kind of sales effort indicated here, is sufficient. See World-Wide Volkswagen Corp. v. Woodson, 444 U. S. 286; Asahi Metal Industry Co. v.

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