439 U.S. 1034 | SCOTUS | 1978
Dissenting Opinion
dissenting.
This case presents the question whether the Due Process Clause permits a tort plaintiff to obtain jurisdiction in New York over a defendant whose sole contact with the State arises from the defendant’s contract for indemnity. with a company that does business in New York.
The Second Circuit affirmed. 579 F. 2d 194 (1978). The court based its ruling on the theory of quad in rem jurisdiction adopted by the New York Court of Appeals in Seider v. Roth, 17 N. Y. 2d 111, 216 N. E. 2d 312 (1966). In Seider, personal jurisdiction was predicated on the fiction that the insurance company’s obligation to indemnify the policyholder was a “debt” that the plaintiff in a negligence suit could attach as a “re8.” In Minichiello v. Rosenberg, 410 F. 2d 106 (1968), the Second Circuit affirmed the constitutionality of Seider jurisdiction, reasoning that the New York Court of Appeals had created judicially a direct-action law similar to the Louisiana statute held constitutional in Watson v. Employers Liability Assurance Corp., 348 U. S. 66 (1954). The Minichiello court recognized that the Seider doctrine differed in one important respect from the Louisiana direct-action statute of Watson: Under Seider, there was no requirement that the tort for
In the case at bar, the petitioners unsuccessfully urged reconsideration of Minichiello on the ground that the Beider doctrine had been undermined by Shaffer v. Heitner, supra. The Court of Appeals viewed the “overriding teaching of Shaffer” as requiring courts to look to the “realities” of the asserted grounds for jurisdiction. As far as the insurance companies were concerned, the court found no unfairness in their being subject to the jurisdiction of New York courts, as they do business in New York. The court thought that this was true even though often it is more expensive (and therefore more costly to insurers) to defend a lawsuit brought several hundred miles from the site of the accident, the residence of the defendants, and the location of the witnesses. The court reached a similar conclusion concerning the fairness of a suit brought in New York against “the nominal defendants” (the petitioners here). The court thought it ironical that they should complain even though they “will not pay the judgment, nor manage the defense.” 579 F. 2d, at 201.
Moreover, the Court of Appeals’ reference to the petitioners as “nominal defendants” disregards many of the “realities” that bear upon whether an alleged tortfeasor, sued in a jurisdiction remote from his home and the location of the accident, is denied the fairness required by the Due Process Clause. It is novel doctrine, at least for me, to refer to the interest of defendants in negligence actions as “nominal” merely because they have insurance. In this case, for example, petitioners will be summoned to appear in a court in New York, and will be required to participate in the defense of the suit in essentially the same manner as if it had been brought in Virginia. They are required to do this 300 miles from their residences and place of business, confronted with all of the uncertainties caused by delays that often stretch a trial over several days or even weeks.
In sum, the judicially created Seider doctrine raises serious questions of due process. To me it does not appear consonant with the standards of fairness enunciated in International Shoe Co. v. Washington, and strongly reiterated in Shaffer v. Heitner. The issues presented are of concern to insurers and insureds in every State, as well as to state legislators responsible for the fairness of long-arm statutes. The case merits plenary consideration by this Court.
Along with this 'case, the Court of'Appeals decided two other cases with respect to which certiorari is sought: Gillespie v. Schwartz, No. 78-268, and Boston Hospital for Women v. Schwartz, No. 78-361. In each of these cases, residents of other States were sued in New York for torts occurring outside of New York. The sole basis for jurisdiction in each is the insurance policy of the defendant, issued by a company doing business in New York. Although I write only with respect to this case, the reasons stated in my opinion here would support the granting of certiorari in all three cases.
In. his persuasive dissent in Minichiello, Judge Anderson argued that Watson was based primarily on a State’s strong interest in having jurisdiction with respect to tortious activity within the State’s borders. See Minichiello, 410 F. 2d, at 113-117. Thus, Judge Anderson concluded that “statutes asserting jurisdiction of the state where the accident occurred qualify as due process, whereas the assertion of jurisdiction by the state of the plaintiff’s residence does not.” Id., at 116 (footnote omitted).
The court did note that no “other state could constitutionally give collateral estoppel effect to a Seider judgment.” Although I agree that no such effect should be allowed, the court’s opinion in this regard is dictum that may or may not be followed in other jurisdictions.
See E. Cleary, McCormick on Evidence § 216 (2d ed. 1972).
See Gulf Oil Corp. v. Gilbert, 330 U. S. 501, 507-509 (1947).
Lead Opinion
C. A. 2d Cir. Certiorari denied.