¶1 This case requires us to examine the stream of commerce doctrine and to determine the prerequisites for a state to exercise specific personal jurisdiction over a non-resident
I. Facts and Procedural History
¶2 In 2012, Respondent Allister Mark Boustred, a Colorado resident, purchased a replacement main rotor holder for his radio-controlled helicopter from a retailer in Fort Collins, Colorado. The main rotor holder was allegedly manufactured by Petitioner Align Corporation Limited ("Align"), a Taiwanese corporation, and distributed by Respondent Horizon Hobby, Inc. ("Horizon"), a Delaware-based corporation. Align has no physical presence in the United States, but it contracts with U.S.-based distributors to sell its products to retailers who, in turn, sell them to consumers. At the time of the incident at issue here, Align sold its products throughout the United States through four U.S.-based distributors, including Horizon.
¶3 Boustred installed the main rotor holder to his helicopter and was injured in Colorado when the blades held by the main rotor holder released and struck him in the eye. He filed claims of strict liability and negligence against both Align and Horizon in Colorado.
¶4 Align filed a motion to dismiss Boustred's claims on the ground that Colorado lacked personal jurisdiction over it. The district court denied the motion, concluding that Boustred had made a prima facie showing of personal jurisdiction under Colorado's long-arm statute and the U.S. Constitution. In support of this determination, and resolving any controverted facts in favor of Boustred, the district court found that Boustred's "allegations and supporting documents show that Align injected a substantial number of products into the stream of commerce knowing that those products would reach Colorado" and that Align "took steps to market its products in the U.S. and Colorado." The district court also noted that Boustred's allegations were "supported by documents that purportedly show that Align provided marketing materials to its distributors, attended trade shows in the U.S. where Align actively marketed its products, and established channels through which consumers could receive assistance with their Align products." The district court further determined that jurisdiction over Align was reasonable both because Align would suffer no greater burden in defending this suit in Colorado than it would in any other U.S. forum and because Colorado has a substantial interest in protecting its residents from faulty products.
¶5 Align then asked the district court to certify the personal jurisdiction question for interlocutory appeal under C.A.R. 4.2, and the district court granted the motion. A division of the court of appeals accepted jurisdiction and affirmed the district court's ruling. Boustred v. Align Corp. Ltd.,
¶6 Align appealed, and we granted certiorari.
II. Analysis
¶7 This case presents the first opportunity for this court to address the impact of two U.S. Supreme Court plurality opinions- Asahi and J. McIntyre-on Colorado's stream of commerce jurisprudence. We begin by reviewing the law of personal jurisdiction generally and its application in stream of commerce cases specifically. We consider the three primary U.S. Supreme Court cases exploring the stream of commerce doctrine- World-Wide Volkswagen, Asahi, and J. McIntyre-and conclude that World-Wide Volkswagen remains the controlling precedent. Next, we apply the stream of commerce doctrine to the case before us and conclude that Boustred made a sufficient showing under this doctrine to withstand a motion to dismiss.
A. Standard of Review
¶8 "Whether a court may exercise personal jurisdiction over a defendant is a question of law, which we review de novo." Griffith v. SSC Pueblo Belmont Operating Co. LLC,
B. Personal Jurisdiction
¶9 For a Colorado court to exercise jurisdiction over a non-resident defendant, the court must comply with Colorado's long-arm statute and constitutional due process.
¶10 The due process clauses of the United States and Colorado constitutions operate to limit a state's exercise of personal jurisdiction over non-resident defendants. See Helicopteros Nacionales de Colombia, S.A. v. Hall,
¶11 "Specific jurisdiction is properly exercised where the injuries triggering litigation arise out of and are related to 'activities that are significant and purposefully directed by the defendant at residents of the forum.' "
¶12 The "purposeful availment" requirement precludes personal jurisdiction
¶13 Once it is established that a defendant has the requisite minimum contacts, "these contacts may be considered in light of other factors to determine whether the assertion of personal jurisdiction would comport with 'fair play and substantial justice.' " Keefe,
C. Personal Jurisdiction in Stream of Commerce Cases
¶14 The U.S. Supreme Court first addressed the minimum contacts analysis in the context of non-resident manufacturers in World-Wide Volkswagen. There, the Court held that a "forum State does not exceed its powers under the Due Process Clause if it asserts personal jurisdiction over a corporation that delivers its products into the stream of commerce with the expectation that they will be purchased by consumers in the forum State."
[A]rises from the efforts of the manufacturer to serve directly or indirectly, the market for its product in other States, it is not unreasonable to subject [the manufacturer] to suit in one of those States if its allegedly defective merchandise has there been the source of injury to its owner or to others.
¶15 But the mere possibility that a product might end up in a given state cannot constitute the purposeful availment necessary to support personal jurisdiction because " 'foreseeability' alone has never been a sufficient benchmark for personal jurisdiction under the Due Process Clause."
[T]he foreseeability that is critical to due process analysis is not the mere likelihood that a product will find its way into the forum State. Rather, it is that the defendant's conduct and connection with the forum State are such that he should reasonably anticipate being haled into court there.
¶16 Since World-Wide Volkswagen, two decisions of the Court- Asahi and J. McIntyre-have addressed the stream of commerce doctrine. However, both were split decisions, and each provided internally competing analytical frameworks for determining the scope of the minimum contacts analysis in stream of commerce cases.
¶17 In Asahi, a Japanese parts manufacturer, Asahi Metal Industry Co., Ltd. ("Asahi"), sold a tire valve to a Japanese motorcycle manufacturer.
¶18 The Asahi four-justice plurality, in an opinion penned by Justice O'Connor, noted
¶19 The plurality endorsed the stream of commerce plus test: "The '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."
¶20 Justice Brennan, joined by three other justices, concurred in the judgment but disagreed with adopting the stream of commerce plus test.
¶21 The Court again addressed this issue in a split decision in J. McIntyre. There, the plaintiff was injured in New Jersey while using a metal-shearing machine that was manufactured in England by J. McIntyre Machinery Ltd. ("J. McIntyre").
¶22 In a four-justice plurality, Justice Kennedy endorsed the stream of commerce plus test for products-liability cases and sought to clarify the "imprecision arising from Asahi."
¶23 Justice Breyer, joined by Justice Alito, concurred in the judgment but declined to adopt the plurality's stream of commerce plus test.
¶24 This court has not yet examined the impact of Asahi and J. McIntyre on Colorado's stream of commerce jurisprudence for the purposes of establishing specific jurisdiction. Both cases were plurality opinions providing no clear holding. When the U.S. Supreme Court issues such an opinion, the holding "may be viewed as that position taken by those Members who concurred in the judgments on the narrowest grounds." Marks v. United States,
¶25 Turning first to Asahi, Justice O'Connor's plurality opinion altered World-Wide Volkswagen's stream of commerce test when it embraced the stream of commerce plus test, which added the requirement that a plaintiff must prove additional conduct of a defendant beyond placing a product into the stream of commerce in order to establish sufficient minimum contacts with the forum state. See Asahi,
¶27 Thus, in determining the contours of Colorado's stream of commerce jurisprudence for the purposes of establishing specific jurisdiction, we are bound by the Court's majority opinion in World-Wide Volkswagen, the reasoning in Justice Brennan's concurrence in Asahi, and the reasoning in Justice Breyer's concurrence in J. McIntyre. As noted above, World-Wide Volkswagen clarifies that the requisite minimum contacts may be established by showing that the defendant placed goods into the stream of commerce with the expectation that the goods will be purchased in the forum state.
¶28 Having determined the proper test for specific personal jurisdiction over a non-resident defendant in stream of commerce cases, we now turn to this case and consider whether the district court properly denied Align's motion to dismiss.
D. Personal Jurisdiction over Align
¶29 Align is appealing the district court's denial of its motion to dismiss for lack of jurisdiction. Because the district court considered only documentary evidence when ruling on the motion to dismiss, Boustred only had to make a prima facie showing of personal jurisdiction to defeat the motion. Goettman v. N. Fork Valley Rest.,
¶30 A plaintiff makes a prima facie showing when he or she raises a reasonable inference, whether in the complaint or in other documentary evidence, that the court has jurisdiction over the defendant. Goettman,
¶31 To make a prima facie showing under World-Wide Volkswagen, a plaintiff
¶32 In his complaint and supporting documentary evidence (obtained through limited discovery), Boustred alleged the following:
• Boustred is a resident of Colorado;
• He was injured in Colorado when the blades of his helicopter held by the main rotor holder released and struck him in the eye;
• Align manufactured the subject radio-controlled helicopter and subject allegedly defective main rotor holder in Taiwan where the company is based;
• Align sells its products via an international distributorship network that includes four distributors in the United States, one of which is Horizon;
• The rotor holder at issue here was distributed by Horizon and purchased in Colorado;
• Horizon has sold over $350,000 worth of Align products in Colorado;
• Align placed no limitations on where Horizon could distribute products in the United States;
• Align's products are sold throughout the United States, including Colorado;
• All four distributors have distributed Align's products in Colorado;
• All four distributors are promoted and advertised by Align, and in particular on Align's website;
• Align provided marketing materials to all of its U.S. distributors;
• Align attended trade shows in the United States where it actively marketed its products; and
• Align established channels through which consumers could receive assistance with their Align products.4
¶33 This documentary evidence reasonably supports an inference that the presence of the allegedly defective main rotor holder in Colorado did not result from "random, fortuitous, or attenuated" contacts with Colorado and instead was placed into the stream of commerce with the expectation that the products will be purchased in Colorado. See World-Wide Volkswagen,
¶34 We reject Align's argument that selling its products through a distributor somehow turns the distribution and sale of its products into the unilateral activity of a third party that cannot properly be considered in the minimum contacts analysis. Adopting such a position would render foreign manufacturers immune from suit in the United
¶35 Moreover, we conclude that the assertion of personal jurisdiction over Align would be reasonable such that it would not violate "traditional notions of fair play and substantial justice." Int'l Shoe,
III. Conclusion
¶36 For the foregoing reasons, we affirm the judgment of the division of the court of appeals.
Notes
We granted certiorari to review the following issue:
Whether the court of appeals erred in finding that petitioner's national marketing, distribution, and other activities are sufficient "minimum contacts" to exercise specific jurisdiction in Colorado under World-Wide Volkswagen Corp. v. Woodson,, 444 U.S. 286 , 100 S.Ct. 559 (1980) and J. McIntyre Mach., Ltd. v. Nicastro, 62 L.Ed.2d 490 , 564 U.S. 873 , 131 S.Ct. 2780 (2011). 180 L.Ed.2d 765
Ultimately, Justice Brennan concluded that while there were sufficient minimum contacts to support jurisdiction, an exercise of personal jurisdiction in the case before him "would not comport with 'fair play and substantial justice.' " Asahi,
The U.S. Supreme Court's recent decision in Bristol-Myers Squibb Co. v. Superior Court, --- U.S. ----,
Align submitted affidavits and other materials to counter Boustred's allegations, but we resolve controverted facts in favor of the plaintiff for the purposes of a motion to dismiss. Archangel,
We note, however, that this showing only allows Boustred to survive Align's motion to dismiss. As the case proceeds, Boustred may have to meet a higher burden to definitively establish that Colorado may exercise jurisdiction over Align. See Goettman,
