BNSF RAILWAY CO. v. TYRRELL, SPECIAL ADMINISTRATOR FOR THE ESTATE OF TYRRELL, DECEASED, ET AL.
No. 16-405
SUPREME COURT OF THE UNITED STATES
May 30, 2017
581 U.S. ___ (2017)
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.
Syllabus
BNSF RAILWAY CO. v. TYRRELL, SPECIAL ADMINISTRATOR FOR THE ESTATE OF TYRRELL, DECEASED, ET AL.
CERTIORARI TO THE SUPREME COURT OF MONTANA
No. 16-405. Argued April 25, 2017—Decided May 30, 2017
The Federal Employers’ Liability Act (FELA),
Held:
1. Section 56 does not address personal jurisdiction over railroads. Pp. 4-9.
(b) The second relevant sentence of §56—that “[t]he jurisdiction of the courts of the United States under this chapter shall be concurrent with that of the courts of the several States“—refers to concurrent subject-matter jurisdiction of state and federal courts over FELA actions. See Second Employers’ Liability Cases, 223 U. S. 1, 55-56. Congress added this clarification after the Connecticut Supreme Court held that Congress intended to confine FELA litigation to federal courts, and that state courts had no obligation to entertain FELA claims. Pp. 7–8.
(c) None of the cases featured by the Montana Supreme Court in reaching its contrary conclusion resolved a question of personal jurisdiction. Pope v. Atlantic Coast Line R. Co., 345 U. S. 379; Miles v. Illinois Central R. Co., 315 U. S. 698; Kepner, 314 U. S. 44; and Denver & Rio Grande Western R. Co. v. Terte, 284 U. S. 284, distinguished. Moreover, all these cases, save Pope, were decided before this Court‘s transformative decision on personal jurisdiction in International Shoe Co. v. Washington, 326 U. S. 310. Pp. 8-9.
2. The Montana courts’ exercise of personal jurisdiction under Montana law does not comport with the Fourteenth Amendment‘s Due Process Clause. Only the propriety of general personal jurisdiction is at issue here because neither Nelson nor Tyrrell alleges injury from work in or related to Montana.
A state court may exercise general jurisdiction over out-of-state corporations when their “affiliations with the State are so ‘continuous and systematic’ as to render them essentially at home in the forum State.” Daimler, 571 U. S., at ___. The “paradigm” forums in which a corporate defendant is “at home” are the corporation‘s place of incorporation and its principal place of business, e.g., id., at ___, but in an “exceptional case,” a corporate defendant‘s operations in another fo-
Here, BNSF is not incorporated or headquartered in Montana and its activity there is not “so substantial and of such a nature as to render the corporation at home in that State.” Ibid. Pp. 9-12.
383 Mont. 417, 373 P. 3d 1, reversed and remanded.
GINSBURG, J., delivered the opinion of the Court, in which ROBERTS, C. J., and KENNEDY, THOMAS, BREYER, ALITO, KAGAN, and GORSUCH, JJ., joined. SOTOMAYOR, J., filed an opinion concurring in part and dissenting in part.
NOTICE: This opinion is subject to formal revision before publication in the preliminary print of the United States Reports. Readers are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington, D. C. 20543, of any typographical or other formal errors, in order that corrections may be made before the preliminary print goes to press.
SUPREME COURT OF THE UNITED STATES
No. 16-405
BNSF RAILWAY CO., PETITIONER v. KELLI TYRRELL, SPECIAL ADMINISTRATOR FOR THE ESTATE OF BRENT T. TYRRELL, DECEASED, ET AL.
ON WRIT OF CERTIORARI TO THE SUPREME COURT OF MONTANA
[May 30, 2017]
JUSTICE GINSBURG delivered the opinion of the Court.
The two cases we decide today arise under the Federal Employers’ Liability Act (FELA),
“Under this chapter an action may be brought in a district court of the United States, in the district of the residence of the defendant, or in which the cause of action arose, or in which the defendant shall be doing business at the time of commencing such action. The jurisdiction of the courts of the United States un-
der this chapter shall be concurrent with that of the courts of the several States.”
We hold that §56 does not address personal jurisdiction over railroads. Its first relevant sentence is a venue prescription governing proper locations for FELA suits filed in federal court. The provision‘s second relevant sentence, using the term “concurrent” jurisdiction, refers to subject-matter jurisdiction, not personal jurisdiction. It simply clarifies that the federal courts do not have exclusive subject-matter jurisdiction over FELA suits; state courts can hear them, too.
Montana‘s Supreme Court, in the alternative, relied on state law, under which personal jurisdiction could be asserted over “persons found within ... Montana.”
I
In March 2011, respondent Robert Nelson, a North Dakota resident, brought a FELA suit against BNSF in a Montana state court to recover damages for knee injuries Nelson allegedly sustained while working for BNSF as a fuel-truck driver. 383 Mont. 417, 419, 373 P. 3d 1, 3 (2016). In May 2014, respondent Kelli Tyrrell, appointed in South Dakota as the administrator of her husband Brent Tyrrell‘s estate, similarly sued BNSF under FELA in a Montana state court. Id., at 419–420, 373 P. 3d, at 3.
BNSF is incorporated in Delaware and has its principal place of business in Texas. Id., at 419, 373 P. 3d, at 3. It operates railroad lines in 28 States. No. DV 14–699 (13th Jud. Dist., Yellowstone Cty., Mont., Oct. 7, 2014), App. to Pet. for Cert. 63a. BNSF has 2,061 miles of railroad track in Montana (about 6% of its total track mileage of 32,500), employs some 2,100 workers there (less than 5% of its total work force of 43,000), generates less than 10% of its total revenue in the State, and maintains only one of its 24 automotive facilities in Montana (4%). Ibid. Contending that it is not “at home” in Montana, as required for the exercise of general personal jurisdiction under Daimler, 571 U. S., at ___ (slip op., at 8) (internal quotation marks omitted), BNSF moved to dismiss both suits for lack of personal jurisdiction. Its motion was granted in Nelson‘s case and denied in Tyrrell‘s. 383 Mont., at 419, 373 P. 3d, at 2.
After consolidating the two cases, the Montana Supreme Court held that Montana courts could exercise general personal jurisdiction over BNSF. Id., at 429, 373 P. 3d, at 9. Section 56, the court determined, authorizes state courts to exercise personal jurisdiction over railroads “doing business” in the State. Id., at 426, 373 P. 3d, at 7 (internal quotation marks omitted). In addition, the court observed, Montana law provides for the exercise of general jurisdiction over “[a]ll persons found within” the State. Id., at 427, 373 P. 3d, at 8 (quoting
Justice McKinnon dissented. Section 56, she wrote, is a federal-court venue prescription, and also confers subject-matter jurisdiction on state courts in FELA cases, concurrent with federal courts. Id., at 435–437, 373 P. 3d, at 13. But §56, she maintained, does not touch or concern personal jurisdiction. Ibid. Furthermore, she concluded, Daimler controls, rendering the Montana courts’ exercise of personal jurisdiction impermissible because BNSF is not “at home” in Montana. 383 Mont., at 433-434, 373 P. 3d, at 11-12.
We granted certiorari, 580 U. S. ___ (2017), to resolve whether §56 authorizes state courts to exercise personal jurisdiction over railroads doing business in their States but not incorporated or headquartered there, and whether the Montana courts’ exercise of personal jurisdiction in these cases comports with due process.
II
Nelson and Tyrrell contend that §56‘s first relevant sentence confers personal jurisdiction on federal courts, and that the section‘s second relevant sentence extends that grant of jurisdiction to state courts. Neither contention is tenable. Section 56‘s first relevant sentence concerns venue; its next sentence speaks to subject-matter jurisdiction.1
A
The first sentence of §56 states that “an action may be brought in a district court of the United States,” in, among other places, the district “in which the defendant shall be doing business at the time of commencing such action.” In Baltimore & Ohio R. Co. v. Kepner, 314 U. S. 44 (1941), we comprehended this clause as “establish[ing] venue” for a federal-court action. Id., at 52. Congress, we explained, designed §56 to expand venue beyond the limits of the 1888 Judiciary Act‘s general venue provision, which allowed suit only “in districts of which the defendant was an inhabitant.” Id., at 49; see
Congress generally uses the expression, where suit “may be brought,” to indicate the federal districts in which venue is proper. See, e.g.,
In contrast, Congress’ typical mode of providing for the exercise of personal jurisdiction has been to authorize service of process. See, e.g.,
Nelson and Tyrrell, however, argue that §56 relates to personal jurisdiction. In their view, the 1888 Judiciary Act provision that prompted §56‘s enactment,
Legislative history “throws little light” here. Kepner, 314 U. S., at 50.2 Driving today‘s decision, we have long read the 1888 Judiciary Act provision to concern venue only. See Green v. Chicago, B. & Q. R. Co., 205 U. S. 530, 532-533 (1907) (analyzing personal jurisdiction separately,
B
The second §56 sentence in point provides that “[t]he jurisdiction of the courts of the United States under this chapter shall be concurrent with that of the courts of the several States.” Nelson and Tyrrell argue that this sentence extends to state courts the first sentence‘s alleged conferral of personal jurisdiction on federal courts. But, as just discussed, the first sentence concerns federal-court venue and confers no personal jurisdiction on any court.
We have understood §56‘s second sentence to provide for the concurrent subject-matter jurisdiction of state and federal courts over actions under FELA. See Second Employers’ Liability Cases, 223 U. S. 1, 55–56 (1912). As Nelson and Tyrrell acknowledge, Congress added the provision to confirm concurrent subject-matter jurisdiction after the Connecticut Supreme Court held that Congress intended to confine FELA litigation to federal courts, and that state courts had no obligation to entertain FELA claims. See Brief for Respondents 23 (citing Hoxie v. New York, N. H. & H. R. Co., 82 Conn. 352, 73 A. 754 (1909)).
C
Pointing to a quartet of cases, the Montana Supreme Court observed that this Court “consistently has interpreted [§]56 to allow state courts to hear cases brought under FELA even where the only basis for jurisdiction is the railroad doing business in the forum [S]tate.” 383 Mont., at 421-423, 425-426, 373 P. 3d, at 4-7 (citing Pope v. Atlantic Coast Line R. Co., 345 U. S. 379 (1953); Miles v. Illinois Central R. Co., 315 U. S. 698 (1942); Kepner, 314 U. S. 44; Denver & Rio Grande Western R. Co. v. Terte, 284 U. S. 284 (1932)).
None of the decisions featured by the Montana Supreme Court resolved a question of personal jurisdiction. Terte held that a FELA plaintiff, injured in Colorado, could bring suit in Missouri state court against a railroad incorporated elsewhere. 284 U. S., at 286-287. The dispute, however, was over the Dormant Commerce Clause, not personal jurisdiction; the railroad defendants argued that the suit would unduly burden interstate commerce, and the decision rested on two Commerce Clause decisions, Michigan Central R. Co. v. Mix, 278 U. S. 492 (1929), and
Moreover, all these cases, save Pope, were decided before this Court‘s transformative decision on personal jurisdiction in International Shoe Co. v. Washington, 326 U. S. 310 (1945). See Daimler, 571 U. S., at ___, n. 18 (slip op., at 20, n. 18) (cautioning against reliance on cases “decided in the era dominated by” the “territorial thinking” of Pennoyer v. Neff, 95 U. S. 714 (1878)).
III
Because FELA does not authorize state courts to exercise personal jurisdiction over a railroad solely on the ground that the railroad does some business in their States, the Montana courts’ assertion of personal jurisdiction over BNSF here must rest on
In International Shoe, this Court explained that a state court may exercise personal jurisdiction over an out-of-state defendant who has “certain minimum contacts with
Goodyear and Daimler clarified that “[a] court may assert general jurisdiction over foreign (sister-state or foreign-country) corporations to hear any and all claims against them when their affiliations with the State are so ‘continuous and systematic’ as to render them essentially at home in the forum State.” Daimler, 571 U. S., at ___ (slip op., at 8) (quoting Goodyear, 564 U. S., at 919). The “paradigm” forums in which a corporate defendant is “at home,” we explained, are the corporation‘s place of incorporation and its principal place of business. Daimler, 571 U. S., at ___ (slip op., at 18-19); Goodyear, 564 U. S., at 924. The exercise of general jurisdiction is not limited to these forums; in an “exceptional case,” a corporate defendant‘s operations in another forum “may be so substantial and of such a nature as to render the corporation at home in that State.” Daimler, 571 U. S., at ___, n. 19 (slip op., at 20, n. 19). We suggested that Perkins v. Benguet Consol. Mining Co., 342 U. S. 437 (1952), exemplified such a case. Daimler, 571 U. S., at ___, n. 19 (slip op., at 20, n. 19). In Perkins, war had forced the defendant corporation‘s owner to temporarily relocate the enterprise from the Philippines to Ohio. 342 U. S., at 447-448. Because Ohio then became “the center of the corporation‘s wartime activities,” Daimler, 571 U. S., at ___, n. 8 (slip op., at 12, n. 8), suit
The Montana Supreme Court distinguished Daimler on the ground that we did not there confront “a FELA claim or a railroad defendant.” 383 Mont., at 424, 373 P. 3d, at 6. The Fourteenth Amendment due process constraint described in Daimler, however, applies to all state-court assertions of general jurisdiction over nonresident defendants; the constraint does not vary with the type of claim asserted or business enterprise sued.3
BNSF, we repeat, is not incorporated in Montana and does not maintain its principal place of business there. Nor is BNSF so heavily engaged in activity in Montana “as to render [it] essentially at home” in that State. See Daimler, 571 U. S., at ___ (slip op., at 8) (internal quotation marks omitted). As earlier noted, BNSF has over 2,000 miles of railroad track and more than 2,000 employees in Montana. But, as we observed in Daimler, “the general jurisdiction inquiry does not focus solely on the magnitude of the defendant‘s in-state contacts.” Id., at ___, n. 20 (slip op., at 21, n. 20) (internal quotation marks and alterations omitted). Rather, the inquiry “calls for an appraisal of a corporation‘s activities in their entirety“; “[a] corporation that operates in many places can scarcely be deemed at home in all of them.” Ibid. In short, the business BNSF does in Montana is sufficient to subject the railroad to specific personal jurisdiction in that State on claims related to the business it does in Montana. But in-state business, we clarified in Daimler and Goodyear, does not suffice to permit the assertion of general jurisdiction over claims like Nelson‘s and Tyrrell‘s that are unrelated
IV
Nelson and Tyrrell present a further argument—that BNSF has consented to personal jurisdiction in Montana. See Brief for Respondents 50–51. The Montana Supreme Court did not address this contention, see 383 Mont., at 429, n. 3, 373 P. 3d, at 9, n. 3, so we do not reach it. See Cutter v. Wilkinson, 544 U. S. 709, 718, n. 7 (2005) (“[W]e are a court of review, not of first view.“).
*
*
*
For the reasons stated, the judgment of the Montana Supreme Court is reversed, and the cases are remanded
It is so ordered.
SUPREME COURT OF THE UNITED STATES
No. 16-405
BNSF RAILWAY CO., PETITIONER v. KELLI TYRRELL, SPECIAL ADMINISTRATOR FOR THE ESTATE OF BRENT T. TYRRELL, DECEASED, ET AL.
ON WRIT OF CERTIORARI TO THE SUPREME COURT OF MONTANA
[May 30, 2017]
JUSTICE SOTOMAYOR, concurring in part and dissenting in part.
I concur in the Court‘s conclusion that the Federal Employers’ Liability Act (FELA),
The Court would do well to adhere more faithfully to the direction from International Shoe Co. v. Washington, 326
The majority‘s approach grants a jurisdictional windfall to large multistate or multinational corporations that operate across many jurisdictions. Under its reasoning, it is virtually inconceivable that such corporations will ever be subject to general jurisdiction in any location other than their principal places of business or of incorporation. Foreign businesses with principal places of business outside the United States may never be subject to general jurisdiction in this country even though they have continuous and systematic contacts within the United States. See id., at ___ (slip op., at 17-18). What was once a holistic, nuanced contacts analysis backed by considerations of fairness and reasonableness has now effectively been replaced by the rote identification of a corporation‘s
Moreover, the comparative contacts analysis invented in Daimler resurfaces here and proves all but dispositive. The majority makes much of the fact that BNSF‘s contacts in Montana are only a percentage of its contacts with other jurisdictions. Ante, at 3, 11. But International Shoe, which the majority agrees is the springboard for our modern personal jurisdiction jurisprudence, ante, at 9, applied no comparative contacts test. There the Court analyzed whether the Delaware corporation had “by its activities in the State of Washington rendered itself amenable to proceedings” in the State. 326 U. S., at 311. The Court evaluated whether the corporation had offices in the forum State, made contracts there, delivered goods there, or employed salesmen there. See id., at 313. Despite acknowledging that the corporation maintained places of business in several States, ibid., the Court did not engage in a comparison between International Shoe‘s contacts within the State of Washington and the other States in which it operated.2 The Court noted that the corporation
The majority does even Daimler itself a disservice, paying only lipservice to the question the Court purported to reserve there—the possibility of an “exceptional case” in which general jurisdiction would be proper in a forum State that is neither a corporate defendant‘s place of incorporation nor its principal place of business. See 571 U. S., at ___, n. 19 (slip op., at 20, n. 19). Its opinion here could be understood to limit that exception to the exact facts of Perkins v. Benguet Consol. Mining Co., 342 U. S. 437 (1952). See ante, at 10–11. That reading is so narrow as to read the exception out of existence entirely; certainly a defendant with significant contacts with more than one State falls outside its ambit. And so it is inevitable under its own reasoning that the majority would conclude that BNSF‘s contacts with Montana are insufficient to justify the exercise of personal jurisdiction here. This result is perverse. Despite having reserved the possibility of an “exceptional case” in Daimler, the majority here has re-
Worse, the majority reaches its conclusion only by departing from the Court‘s normal practice.4 Had it remanded to the Montana Supreme Court to reevaluate the due process question under the correct legal standard, that court could have examined whether this is such an “exceptional case.” Instead, with its ruling today, the court unnecessarily sends a signal to the lower courts that the exceptional-circumstances inquiry is all form, no substance.
I respectfully concur in part and dissent in part.
It is so ordered.
Notes
This Court‘s opinion is not limited to §56 because the Montana Supreme Court went on to address and decide the question: Do “Montana courts have personal jurisdiction over BNSF under Montana law?” 383 Mont., at 426, 373 P. 3d, at 7. See also id., at 429, 373 P. 3d, at 9 (“Under Montana law, Montana courts have general personal jurisdiction over BNSF.“).
The Montana Supreme Court reached this question only by wrongly assuming that