International Shoe Co. v. Washington
Facts
International Shoe was a Delaware corporation with its principal place of business in Missouri and had no office, inventory, or contract-making authority in Washington. From 1937 to 1940, it employed eleven to thirteen salesmen who resided in Washington, worked chiefly there, displayed samples, solicited orders, and sometimes used rented sample rooms reimbursed by the company. The salesmen could not make contracts or collections; orders were sent to St. Louis for acceptance, and goods were shipped into Washington from outside the state. Washington served notice of assessment personally on one salesman and by registered mail to the company's Missouri office to collect unemployment fund contributions measured by the commissions paid to those salesmen.
Issue
Whether due process permitted Washington to subject International Shoe to proceedings in its courts to recover unemployment compensation contributions arising from the company's activities in Washington, and whether Washington could constitutionally impose those contributions on the company. The case also presented a Commerce Clause challenge, but the Court treated that objection as foreclosed by congressional authorization.
Rule
Due process permits a state to exercise in personam jurisdiction over a defendant not physically present in the forum when the defendant has certain minimum contacts with the state such that maintaining the suit does not offend traditional notions of fair play and substantial justice. The inquiry turns on the quality and nature of the defendant's activities in relation to the fair and orderly administration of the laws, not on a mechanical or merely quantitative measure of activity. When a corporation exercises the privilege of conducting activities within a state and the obligation sued upon arises out of or is connected with those activities, requiring it to defend there will in most instances not be undue.
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