Lead Opinion
Aрpellant Ford Motor Company (Ford) appeals from a court of appeals decision affirming a district court's exercise of specific personal jurisdiction over Ford in a products liability case. Central to the litigation is a Ford vehicle that was involved in a car crash in which the passenger was seriously injured and an airbag in the vehicle allegedly failed to deploy. Ford argues that its contacts with Minnesota were not sufficiently connected to the current litigation because the car at issue was designed, manufactured, and sold outside of Minnesota. Because the claims here arise out of or relate to Ford's contacts with Minnesota, we affirm the court of appeals.
In January of 2015, Respondent Adam Bandemer, a Minnesota resident, was a passenger in a 1994 Ford Crown Victoria driven on a Minnesota road by defendant Eric Hanson, a Minnesota resident. Hanson rear-ended a Minnesota county snow рlow, and the car ended up in a ditch. Minnesota county law enforcement responded to the crash, and Bandemer alleges that he suffered a severe brain injury as a result of the passenger-side airbag not deploying. He was treated for his injuries by Minnesota doctors in Minnesota. Bandemer alleges that the airbag failed to deploy because of a defect, and that the accident was caused by Hanson's negligence. He filed a complaint in district court alleging products liability, negligence, and breach of warranty claims against Ford and negligence claims against Hanson and his father, who owned the car.
Ford moved to dismiss Bandemer's claims for lack of personal jurisdiction. See Minn. R. Civ. P. 12.02(b). Ford does not dispute the quantity and quality of its contacts with Minnesota, nor does it dispute the reasonableness of personal jurisdiction under the circumstances. But it argues that, because the Ford car involved in the accident was not designed, mаnufactured, or originally sold in Minnesota, Ford cannot be subject to personal jurisdiction in Minnesota on this claim.
Ford's contacts include sales of more than 2,000 1994 Crown Victoria cars-and, more recently, about 200,000 vehicles of all kinds in 2013, 2014, and 2015-to dealerships in Minnesota. Ford's advertising contacts include direct mail advertisements to Minnesotans and national advertising campaigns that reach the Minnesota market. Ford's marketing contacts include a 2016 "Ford Experience Tour" in Minnesota, a 1966 Ford Mustang built as a model car for the Minnesota Vikings, a "Ford Driving Skills for Life Free National Teen Driver Training Camp" in Minnesota, and sponsorship of multiple athletic events in Minnesota. Ford also collects data from its dealerships in Minnesota for use in redesigns and repairs. Finally, Ford has employees, certified mechanics, franchises, and real property, as well as an agent for accepting service, in Minnesota.
The district court held that the exerсise of jurisdiction over Ford was proper, and Ford appealed. The court of appeals, applying our decision in Rilley v. MoneyMutual, LLC ,
ANALYSIS
"Whether personal jurisdiction exists is a question of law, which we review de novo." Rilley ,
Minnesota's long-arm statute prevents personal jurisdiction over a nonresident defendant if it would "violate fairness and substantial justice."
We analyze five factors to determine whether the exercise of personal jurisdiction is consistent with federal due process: " '(1) the quantity of contacts with the forum state; (2) the nature and quality of those contacts; (3) the connection of the cause of action with these contacts; (4) the interest of the state providing a forum; and (5) the convenience of the parties.' " Rilley ,
I.
We will first address factors one through three, which determine whether minimum contacts are present. A defendant has sufficient "minimum contacts" to support personal jurisdiction if the defendant "purposefully avails itself" of the privileges,
The "minimum contacts" inquiry necessary to support specific
A.
Although Ford does not contest the quality or quantity of its contacts with Minnesota, a description of those contacts is necessary for us to determine "the relationship among the defendant, the forum, and the litigation." Walden ,
Ford's data collection, marketing, and advertising in Minnesota demonstrate that
Therefore, the court of appeals did not err in holding that the quality and quantity of Ford's contacts with Minnesota were sufficient to support personal jurisdiction.
B.
The first two factors establish that Ford has purposely availed itself of the privileges, benefits, and protections of the stаte of Minnesota. We turn to the third factor in our personal jurisdiction inquiry: the connection of the cause of action to Ford's contacts with the state. A corporation's "single or isolated items of activity in a state ... are not enough to subject it to suit on causes of action unconnected with the activities there." Int'l Shoe Co. ,
The court of appeals relied in part on our decision in Rilley to determine that there was an adequate connection between Ford's contacts with Minnesota and the cause of action, so as to support personal jurisdiction over Ford. Bandemer ,
Ford urges us to change course and instead adopt a "causal" standard for this prong, under which "the defendant's contacts
First, Ford argues that our "related to" conclusion in Rilley is dicta. It argues that we held that the email contacts that MoneyMutual made with Minnesota residents were sufficient by themselves to satisfy the minimum contacts question. See Rilley ,
The Supreme Court most recently addressed the minimum contacts test in its Bristol-Myers Squibb decision, which concerned whether California could exercise personal jurisdiction over a pharmaceutical company in a suit for injuries from medications sold by the defendant. --- U.S. ----,
Ford argues that Bristol-Myers Squibb shows that the Supreme Court applies a "giving rise to" standard in place of the "arising out of or related to" standard. Ford's reading of Bristol-Myers Squibb is unpersuasive for two reasons. First, the Court in Bristol-Myers Squibb stated that "[o]ur settled principles regarding specific jurisdiction control this case," --- U.S. ----,
Ford's next argument, that before Bristol-Myers Squibb the Court consistently applied a causal standard, is also unpersuasive. In the seminal case of International Shoe , for example, the Court described
More recently, in World-Wide Volkswagen , as in the current case, the plaintiffs alleged that a defect in an automobile led to severe injuries following an accident.
Petitioners carry on no activity whatsoever in Oklahoma. They close no sales and perform no services there. They avail themselves of none of the privileges and benefits of Oklahoma law. They solicit no business there either through salespersons or through advertising reasonably calculated to reach the State. Nor does the record show that they regularly sell cars at wholesale or retail to Oklahoma customers or residents or that they indirectly, through others, serve or seek to serve the Oklahoma market.
The Court in Bristol-Myers Squibb stated it was not departing from settled principles of specific personal jurisdiction. We believe it. Therefore, we decline to adopt Ford's causal standard.
C.
Ford also argues that its contacts with Minnesota do not meet the "relating to" standard. It argues that "[n]o part of Ford's allegedly tortious conduct-designing, manufacturing, warrantying, or warning about the 1994 Crown Victoria-occurred in Minnesota." Those contacts are only those that cause the claim, though. As we explained above, the requirements of due process are met so long as Ford's contacts relate to the claim. Rilley ,
This is not a case where a 1994 Ford Grand Victoria fortuitously ended up in Minnesota. Ford has sold thousands of such Crown Victoria cars and hundreds of thousands of other types of cars to dealerships in Minnesota.
Beyond Ford's sales, marketing, and research contacts with Minnesota, there is an " 'affiliation between the forum and the underlying controversy, principally, [an] activity or an occurrence thаt takes place in the forum State.' " Bristol-Myers Squibb , --- U.S. ----,
For these reasons, this case meets the requirement from Bristol-Myers Squibb that an "activity or an occurrence ... take[ ] place in" Minnesota. The dissent disputes the relevance of a plaintiff's contacts with the forum. In fact, our analysis tracks the Court's analysis in Bristol-Myers Squibb. --- U.S. ----,
II.
If sufficient "minimum contacts" are established, we must consider the "reasonableness" of personal jurisdiction according to traditional notions of "fair play and substantial justice," weighing factors such as the convenience of the parties and the interests of the forum state in adjudicating the dispute. Burger King Corp. ,
Ford concedes that these factors are established, and therefore support an exercise of jurisdiction. We agree. Minnesota has a strong interest in adjudicating this dispute regarding an accident involving a Minnesota county vehicle that occurred on a Minnesota road, between a Minnesota resident as plaintiff and both Ford-a corporation that does business regularly in Minnesota-and two Minnesota residents as defendants. Minnesota has a vital interest in protecting the safety and rights of its residents, in regulating the safety of its roadways, and in safeguarding Ford's co-defendants' rights. Minnesota's interest is expressed in its state constitution, which provides: "Evеry person is entitled to a certain remedy in the laws for all injuries or wrongs which he may receive to his person, property or character, and to obtain justice freely and without purchase, completely and without denial, promptly and without delay, conformable to the laws." Minn. Const. art. I, § 8. If complete, prompt, and economical justice are the goals, Minnesota is also the most convenient forum, as the site of the accident and treatment for the injury. Plainly, Minnesota has an interest in adjudicating this dispute and is the most convenient place to do it.
Here, we hold that Ford's contacts alone are sufficient to support specific personal jurisdiction and the reasonableness factors, which heavily favor jurisdiction, do not detract from the reasonableness of asserting jurisdiction over Ford here. After examining "the relationship among the defendant, the forum, and the litigation," we hold that Minnesota's exercise of specific personal jurisdiction over Ford in this case does not violate due process. Walden ,
CONCLUSION
For the foregoing reasons, we affirm the decision of the court of appeals.
Affirmed.
Dissenting, Anderson, J., Gildea, C.J.
DISSENT
Notes
Bandemer also argued below that Ford consented to personal jurisdiction by consenting to receive service of process through an agent in Minnesota. See
The parties agree that Minnesota may not exercise general personal jurisdiction over Ford. Specific personal jurisdiction exists if the litigation "arise[s] out of or relate[s]" to the defendant's contacts with the forum. Burger King Corp. ,
The dissent disputes this characterization of Ford's data collection. Ford describes its data collection as: "Ford's design center collects some performance data from dealers nationally and Ford sometimes considers vehicle performance in the field to inform its overall design decisions." Ford further admitted "that it receives information regarding vehicle performance across the United States, including in Minnesota, and that information may be used by Ford as it considers future designs." But, cruciаlly, Ford's use of the word "may" is not a denial that it collects safety-related data in Minnesota, or that its safety-related data is relevant to Bandemer's causes of action. At the motion-to-dismiss stage, we are required to accept Bandemer's allegations as true unless Ford's discovery responses directly contradict Bandemer's claims. See Rilley ,
The dissent treats the thousands of cars that Ford has sold into Minnesota as irrelevant, because "[e]ven regularly occurring sales of a product in a State do not justify the exercise of jurisdiction over a claim unrelated to those sales." (quoting Goodyear Dunlop Tires Operations, S.A. v. Brown ,
Dissenting Opinion
I join in the dissent of Justice Anderson.
Dissenting Opinion
The Supreme Court of the United States has been emphatic: "In order for a state court to exercise specific jurisdiction, 'the suit ' must 'aris[e] out of or relat[e] to the defendant's contacts with the forum. ' " Bristol-Myers Squibb Co. v. Super. Ct. of Cal. , --- U.S. ----,
I.
Personal jurisdiction refers to "the court's power to exercise control over the parties" to litigation. Leroy v. Great W. United Corp. ,
Minnesota's long-arm statute,
We must begin with International Shoe Co. v. Washington ,
Under International Shoe , a state court may constitutionally exercise personal jurisdiction over a defendant, even if the defendant is "not present within the territory of the forum," so long as the defendant has "minimum contacts with it such that the maintenance of the suit does not offend 'traditional notions of fair play and substantial justice.' "
First, if a defendant's contacts with the state in which suit is brought "are so constant and pervasive 'as to render [it] essentially at home in the forum State,' " then that forum may exercise "general" personal jurisdiction over the defendant. Daimler AG v. Bauman ,
The second type of permissible personal jurisdiction is "specific" or "conduct-linked." Daimler ,
II.
With this overview of the controlling legal principles in mind, I now turn to the specific allegations of Bandemer's complaint and the facts available in the record from the parties' jurisdiction discovery.
Bandemer's complaint against Ford asserts product liability, negligence, and breach-of-warranty claims based on a 2015 incident. Bandemer was a passenger in a 1994 Ford Crown Victoria driven by his friend, apparently on their way to go ice fishing, when the driver collided with a snow plow. The airbags of the vehicle did not deploy and, as a result, Bandemer suffered a severe brain injury.
The Crown Victoria was designed in Michigan; assembled in 1993 in Ontario, Canada; and sold in Bismarck, North Dakota
Bandemer's strict liability claim alleges that Ford "designed, manufactured, advertised, marketed, tested, inspected, furnished, sold and distributed" the 1994 Crown Victoria and placed it into the stream of commerce in a "defective and unreasonably dangerous" condition. He also asserts that the airbag system in the 1994 Crown Victoria was defective and unreasonably dangerous in 2015 because that system was "defectively and/or inadequately designed, tested, manufactured, assembled and installed," and had "inadequate or absent warnings" or notices to users. He alleges that the 1994 Crown Victoria was in "substantially the same condition" in 2015 as when it was "designed manufactured, furnished, sold and/or distributed" and that defective nature was the proximate cause of his injuries. He concludes that Ford knew or should have known of the risks assoсiated with the 1994 Crown Victoria prior to producing and marketing the car, yet "willfully, wantonly, and recklessly manufactured and sold" the 1994 Crown Victoria.
Bandemer's negligence claim asserts that Ford negligently "designed, developed, manufactured, engineered, tested, marketed, inspected, distributed and/or sold" the 1994 Crown Victoria. His claim for breach of warranty alleges that Ford sold a "defective airbag system" into the stream of commerce, and because of the defects in the design and manufacture and Ford's alleged negligence, the airbag system failed, thus breaching warranties of merchantability, fitness for a particular purpose, and express warranties.
It is undisputed that Ford dealerships in Minnesota are independently owned and operated. Ford asserted, and Bandemer does not dispute, that no warranty repair work was conducted on the Crown Victoria in Minnesota; indeed, we accept as true Bandemer's allegation that the car was in "substantially the same condition" in 2015 as when Ford sold it in 1994.
In discovery, Ford admitted that it engages in "nationally-based" advertising for Ford vehicles, some of "which may reach the Minnesota market," and that it sends direct mail to consumers about various Ford products and services, "which may reach the Minnesota market." Ford also admitted that it provides "some creative content for" use in the regional advertising directed and run by independently owned and operated Ford dealerships. Finally, Ford admitted that dealerships, including Minnesota dealerships, "may access" Ford systems that provide dealers with vehicle, technical service, or service and repair information regarding Ford vehicles, and Ford receives information regarding vehicle performance from "across the United States, including in Minnesota," that may be used when considering future designs.
The record is entirely insufficient to permit Minnesota to exercise specific personal jurisdiction over Ford in this litigation. Even taking the allegations of Bandemer's claims as true, all of the wrongful and negligent conduct alleged by Bandemer against Ford, including negligently designing and warning about the Crown Victoria and placing the vehicle into commerce, took place outside of Minnesota. In fact, all of the relevant conduct that frames the basis for Bandemer's claims took place well before the 1994 Crown Victoria was first registered in Minnesota in 2011 by someone other than the parties to this lawsuit. The 1994 Crown Victoria's airbag system was designed in Michigan (not Minnesota). The vehicle was assembled in Canada (not Minnesota), sold in North Dakota (not Minnesota), brought into Minnesota by someone other than Ford, and crashed by a third party into a snow plow operated by another third party. Indeed, all of Ford's conduct that, according to Bandemer, relates to his claims took place more than 20 years before the accidеnt, in states other than Minnesota. There is simply no relationship between Ford's activities in Minnesota and Bandemer's claims.
The court presents a broad and generalized view of Ford's nationwide activities, some of which naturally occurred in or reached Minnesota, to conclude that Ford's Minnesota contacts relate to Bandemer's litigation. But this is a question of specific jurisdiction that we are deciding, and "general connections with the forum are not enough." Bristol-Myers Squibb , --- U.S. ----,
Although Ford collected data from its independent dealerships across the nation, including, possibly, dealerships in Minnesota, and used that data to inform future design work, this generality is legally and factually irrelevant. See Bristol-Myers Squibb , --- U.S. ----,
The record fails to establish the relevance of Ford's data collection to Bandemer's claims. Specifically, a Ford design engineer testified, and his testimony was uncontradicted, that the 1994 Crown Victoria's front passenger restraint system was designed in Michigan . The engineer in no way indicated that Minnesota data influenced the design, and Bandemer offered no allegations, discovery responses, or other evidence to establish a link between any of Ford's generally national activities and the conduct related to the design, manufacturing, advertising, and sales of the Crown Victoria that is the focus of his strict liability, negligence, and tort claims.
At best, possibilities can be stated. Ford's data collection efforts may have captured information in Minnesota that was incorporated into the design of the 1994 Crown Victoria and its component
Nor do Ford's current advertising activities relate to Bandemer's claims, which plainly focus on the design, manufacturing, and sale of the 1994 Crown Victoria and its restraint system. Bandemer did not allege, nor is there reason to think, that his friend's father would have seen Crown Victoria advertising at or around the time he purchased that vehicle from a third party almost 20 years after Ford first sold it. The court's focus on Ford's national advertisements fails to address Ford's fact-specific reply that no Minnesota advertisements mentioned the Crown Victoria. Cf. Rilley ,
In this regard, Ford's advertising is categorically different from the internet advertising that ultimately supported the exercise of personal jurisdiction in Rilley . In that case, a payday lender used nationwide television advertising, email communications with Minnesota residents, and internet advertisements to solicit applications from Minnesota residents for allegedly illegal loans.
We held that the advertisements were "sufficiently 'related to' the [plaintiffs'] cause of action because they were a means by which [the lender] solicited Minnesotans to apply for the allegedly illegal loans."
The fact that Ford sold the Crown Victoria and thousands of other cars to dealerships in Minnesota cannot sustain the exercise of specific personal jurisdiction. "[E]ven regularly occurring sales of a product in a State do not justify the exercise of jurisdiction over a claim unrelated to those sales."
The number of other vehicles that Ford sold in Minnesota is irrelevant for another reason: the Supreme Court squarely rejected a similar quantity-over-quality argument in Bristol-Myers Squibb , --- U.S. ----,
Because all of Ford's Minnesota contacts are unrelated to Bandemer's claims, the court here upholds a form of general jurisdiction over Ford no less "loose and spurious." The court essentially performs a "dispute-blind" analysis of Ford's contacts with Minnesota, Tyrrell , --- U.S. ----,
The court focuses on a different statement from Bristol-Myers Squibb , that "there must be 'an affiliation between the forum and the underlying controversy, principally, [an] activity or an occurrence that takes place in the forum State ....' " --- U.S. ----,
Whatever other requirement these facts meet, they do not establish that Ford's Minnesota contacts relate to Bandemer's litigation. Ford cannot be haled into a Minnesota court simply because an accident involving a vehicle manufactured by Ford (in another location) occurred here. See Walden ,
The court's reliance on the activities of persons other than Ford-the injured plaintiff, the co-defendant who was driving, and the third party who brought the car into Minnesota-is fundamentally flawed. The court ignores the principle that "[t]he personal jurisdiction requirement recognizes and protects an individual liberty interest" and that "[i]t represents a restriction on judicial power ... as a matter of individual liberty." Ins. Corp. of Ir. ,
In sum, because the due process right belongs to the defendant, it is the defendant's forum contacts that matter-not the plaintiff's contacts, not a co-defendant's contacts, not a third party's contacts. And when specific personal jurisdiction is asserted, the contacts that the defendant makes with the forum must relаte to the plaintiff's claims. Here, even accepting the allegations and supporting evidence as true, the court's analysis does not establish that Ford's Minnesota contacts relate to Bandemer's claims. The reasoning of the court is therefore, at a minimum, inconsistent with controlling Supreme Court jurisprudence and will likely lead other litigants and courts astray. For these reasons, I would reverse the court of appeals and remand this case to the district court with directions to dismiss Bandemer's claims against Ford for lack of specific personal jurisdiction.
At oral argument, Bandemer asserted that in-state, cause-of-action-related activity by Ford is not required. This argument lacks merit. Bandemer's two authorities for this proposition, the dissent in Bristol-Myers Squibb , --- U.S. ----,
As the court states, at this stage of the proceeding, we must accept Bandemer's allegations as true. Juelich v. Yamazaki Mazak Optonics Corp. ,
The court's explanation of Ford's discovery answers omits this nationwide context, thus transforming answers regarding future possibilities that have nothing to do with any Crown Victoria, let alone the 1994 model, into Minnesota-specific admissions. Nothing in Ford's discovery answers admitted that Ford "collects safety-related data in Minnesota" or that it used data collected "through Ford dealerships in Minnesota ... to inform improvements to its designs and to train mechanics." In fact, Ford "denied" Bandemer's Request for Admission that asked Ford to admit that it "gathers from dealerships, including Ford's dealerships in Minnesota," data that is used to "redesign its products sold into Minnesota and elsewhere." Ford admitted that it "receives information regarding vehicle performance [from] across the United States, including in Minnesota" and that information "may be used by Ford as it considers future designs." (Emphasis added.) Taking the allegations of his complaint as true, Bandemer's claims focus on Ford's conduct with respect to the 1994 Crown Victoria, not possible considerations regarding future designs.
I agree with the court that Goodyear is a general jurisdiction case. I disagree that my reliance on Goodyear is therefore unwarranted. The court fails to explain why "elid[ing] the essential difference" between general jurisdiction and specific jurisdiction is somehow less erroneous in a case that raises a claim of specific jurisdiction than in a case that raises a claim of general jurisdiction.
Nor is note six of Goodyear the only place where the Court has rejected the approach that our court doubles-down on today: that a defendant's extensive, though suit-irrelevant, forum contacts are sufficient to sustain specific jurisdiction. See Bristol-Myers Squibb , --- U.S. ----,
