Wiles v. Morita Iron Works Co.

530 N.E.2d 1382, 125 Ill. 2d 144, 125 Ill. Dec. 812, 1988 Ill. LEXIS 136
CourtIllinois Supreme Court
DecidedSeptember 29, 1988
Docket65015
StatusPublished
Cited by64 cases

This text of 530 N.E.2d 1382 (Wiles v. Morita Iron Works Co.) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wiles v. Morita Iron Works Co., 530 N.E.2d 1382, 125 Ill. 2d 144, 125 Ill. Dec. 812, 1988 Ill. LEXIS 136 (Ill. 1988).

Opinion

JUSTICE CLARK

delivered the opinion of the court:

This appeal arises out of an action grounded in strict liability and negligence brought in the circuit court of Cook County. The plaintiff, Floyd Wiles, brought the action against the defendant, Morita Iron Works Company, Ltd. (hereinafter MIW), a Japanese corporation not licensed to do business in Illinois. The defendant filed a special and limited appearance and a motion to dismiss, challenging the in personam jurisdiction of the court, pursuant to the Illinois long arm statute (Ill. Rev. Stat. 1985, ch. 110, par. 2—209). The motion was supported by the affidavit of Motoo Morita, the defendant’s president. The trial court quashed the service of process on the defendant and dismissed the defendant from this action. The appellate court reversed the trial court’s order (152 Ill. App. 3d 782), holding that the defendant is properly subject to in personam jurisdiction in Illinois. We granted the defendant’s petition for leave to appeal under Rule 315 (107 Ill. 2d R. 315).

The facts relevant to this appeal are as follows. The plaintiff’s employer, Astro Packaging Company (hereinafter Astro), is a corporation which operates plants in Hawthorne, New Jersey, and Alsip, Illinois. Astro purchased four “air cell former” machines from MIW in Japan. Astro shipped two of the machines to its New Jersey plant and two machines to its Illinois plant. It was one of the two machines sent to the Illinois plant which allegedly caused personal injuries to the plaintiff, for which the plaintiff now seeks damages from the defendant.

In his complaint the plaintiff alleged that the defendant manufactured, designed, and sold the air cell former in question, and that on April 11, 1983, the plaintiff was injured while cleaning the machine pursuant to his employment duties at Astro. In its motion to dismiss, the defendant admitted that it manufactured the machine and that all four of the machines were delivered into the possession of the plaintiff’s employer in Japan, and stated that it was “entirely fortuitous” that two of the four machines were shipped by Astro to Illinois from Japan. The affidavit filed by Motoo Morita, the defendant’s president, in support of its motion to dismiss, revealed that MIW was primarily engaged in the business of manufacturing machinery used to make springs for automobiles. According to Morita, MIW has made a total of only nine air cell formers, four of which were purchased by Astro. None of the five remaining air cell formers were used in the United States. Morita further stated that the four machines purchased by Astro were delivered into the custody of Astro agents in Japan, and that Astro transported the machines from Japan. Morita also alleged that “MIW is informed and believes that two of the air cell formers were transported by Astro Packaging Co. to Alsip, Illinois.”

The affidavit disclosed that the negotiations for the purchase of the four air cell formers between Astro and MIW took place at the following locations and times:

September 22 and 23,1980

September 17 — 19,1980

July 21-23,1981

September 24,1981

January 25 — 27, 1982

April 27 — May 1,1982

October 17-20,1983

Monchengladbach,

West Germany

Hawthorne, New Jersey

MIW plant, Japan

MIW plant, Japan.

Morita stated that the contract was never negotiated in Illinois. All payments were received by MIW in Japan and sent by Astro from New Jersey. The affidavit reveals that gross income from the sale of air cell formers has amounted to less than 7.6% of the gross receipts of MIW from all sources. Morita also stated that MIW “does not own or operate any manufacturing plant or other business in Illinois”; that “MIW has not in the past employed any business or other agents in Illinois nor maintained any office in the State”; and that “[a]ll witnesses to the design process, manufacturing decisions, and assembly process are in Japan.”

The record in this case further reveals that MIW had been served with summons in Japan. Additionally, no counteraffidavits were filed by the plaintiff in response to the defendant’s motion to dismiss and supporting affidavit. The record does not include the contract between the Astro corporation and MIW for the sale of the four air cell formers.

After the motion to dismiss was briefed and argued, the trial judge held that the nonresident defendant did not have sufficient minimum contacts with the State of Illinois to sustain jurisdiction under the long arm statute (Ill. Rev. Stat. 1985, ch. 110, par. 2 — 209). The judge entered a final order dismissing MIW, and as stated previously, the appellate court reversed that order.

The sole issue presented in this appeal is whether the defendant’s contacts with the State of Illinois are sufficient to subject the defendant to the in personam jurisdiction of the Illinois courts.

The plaintiff asserts here that personal jurisdiction of MIW is predicated upon sections 2 — 209(a)(1) and (a)(2) of the Illinois long arm statute, which provide:

“(a) Any person, whether or not a citizen or resident of this State, who in person or through an agent does any of the acts hereinafter enumerated, thereby submits such person, and, if an individual his or her personal representative, to the jurisdiction of the courts of this State as to any cause of action arising from the doing of any of such acts:
(1) The transaction of any business within this State;
(2) The commission of a tortious act within this State.” Ill. Rev. Stat. 1985, ch. 110, pars. 2 — 209(a)(1), (a)(2).

However, for the purpose of this appeal we need not determine whether the defendant’s activities meet the requirements of the long arm statute. Even assuming arguendo that the defendant’s activities did constitute the transaction of business or the commission of a tortious act within this State, the fact that jurisdiction may be predicated under the long arm statute does not necessarily mean that jurisdiction over this defendant is proper. The exercise of jurisdiction over this defendant must comport with the principles of due process, and in this case we find that it does not. See People ex rel. Mangold v. Flieger (1985), 106 Ill. 2d 546, 550.

“The Due Process Clause of the Fourteenth Amendment limits the power of a state court to render a valid personal judgment against a nonresident defendant.” (World-Wide Volkswagen Corp. v. Woodson (1980), 444 U.S. 286, 291, 62 L. Ed. 2d 490, 497, 100 S. Ct. 559, 564.) To subject a defendant to a judgment in personam, due process requires that the defendant have certain minimum contacts with the forum State such that maintenance of the suit there does not offend “traditional notions of fair play and substantial justice.” International Shoe Co. v.

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Cite This Page — Counsel Stack

Bluebook (online)
530 N.E.2d 1382, 125 Ill. 2d 144, 125 Ill. Dec. 812, 1988 Ill. LEXIS 136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wiles-v-morita-iron-works-co-ill-1988.