delivered the judgment of the court, with opinion.
Justices Cahill and McBride concurred in the judgment and opinion.
OPINION
Plaintiff’s brother died during a helicopter crash in Illinois. Defendant SNFA, a French company, made a part for that helicopter, which plaintiff claims was defective and the cause of the crash. Defendant moved to dismiss on the ground that Illinois had no jurisdiction over it, and the trial court dismissed for lack of personal jurisdiction. For the reasons discussed below, we reverse and remand for further proceedings consistent with this opinion.
BACKGROUND
I. The Parties
On January 28, 2003, Michael Russell (Russell) died during a helicopter crash in Illinois. Russell, who was the pilot and sole occupant, was working for Air Angels, a medical air service that did business primarily in Illinois and, in particular, Cook County. Russell died leaving a wife and two sons. Plaintiff John Russell (plaintiff) is Michael Russell’s brother and the executor of Michael Russell’s estate.
In his complaint, plaintiff alleged that the crash was caused, specifically, by the failure of one of the helicopter’s tail-rotor drive-shaft bearings, which defendant manufactured. Plaintiff alleged that, as a result of this failure, the drive shaft fractured, leaving the tail rotor inoperable. The helicopter then spun out of control, crashing to the ground.
Defendant is a French manufacturer of both custom-made aerospace hearings and helicopter tail-rotor bearings.
II. The Product at Issue
In its brief to this court, defendant admitted the following facts.
The helicopter involved in the accident was an A 109 helicopter manufactured by Agusta S.p.A. (Agusta) in Italy in 1989. The helicopter contained seven tail-rotor bearings manufactured by defendant. These bearings were custom-made by defendant for use in Agusta’s A 109 helicopters. The helicopter in question had several owners and operators. In 1998, a German company sold it to Metro Aviation in Louisiana, which in turn sold it to Air Angels, which was Russell’s employer at the time of the crash.
In 1998 and again in 2002, Metro Aviation replaced some of the bearings. The replacement bearings had been manufactured by defendant in France, and then sold to Agusta in Italy, which in turn sold them to its American subsidiary, Agusta Aerospace Corporation (Agusta AC), which then sold them to Metro Aviation in Louisiana. Defendant acknowledges that Agusta AC sells SNFA’s custom-made bearings to owners of A 109 aircraft around the world.
Specifically for Agusta, defendant manufactures several different custom-made tail-rotor bearings. Agusta provides defendant with precise specifications, and defendant manufactures the bearings according to those specifications. Defendant acknowledges that it knows that its custom-made tail-rotor bearings are incorporated by Agusta into helicopters and also sold as individual replacement parts.
Defendant states that it is in the business of providing custom-made bearings, mostly to European customers. Defendant manufactures custom-made bearings for both the aerospace industry and for helicopters. Defendant claims that it has no American customers for its helicopter bearings, but admits that it does have three American customers for its aerospace bearings: (1) Rolls Royce, a jet-engine manufacturer; (2) Honeywell, an engine manufacturer; and (3) Hamilton Sundstrand, a subsidiary of United Technologies Corporation.
III. Orders Appealed From
On August 26, 2010, the trial court granted defendant’s motion to dismiss for lack of personal jurisdiction, but it stayed the order. The trial court’s written order stated that its ruling was “made in accordance w/ [sic] transcript.” In open court, the trial court explained, as follows, why it rejected plaintiff’s claim that defendant was doing business in Illinois:
“Now, in the case before me, there is no office, there is no showing whatsoever of the derivation of a substantial portion of overall business in Illinois.
There is only the most minimal showing of physical presence in Illinois. Two visits are discussed, but only one of those visits falls within the parameter of which the cases say the Court should consider, in determining the existence of general jurisdiction. ***
So, I selected a slightly broader period of two-and-a-half years, but the first visit was in 2000, and the accident didn’t occur [until] 2003.
So, during the relevant period, we have a single visit of a SNFA representative to Hamilton Sundstrand in Rockford, and we have invoicing done through Rockford, although the product, itself, was shipped to San Diego.
At best, we have a decent dollar amount of sales reflected in the invoices, not quite a million dollars, if I rely on that figure in that contract that I mentioned.
Whereas, in Riemer [v. KSL Recreation Corp.,348 Ill. App. 3d 26 (2004)], $6 million in sales by a much smaller company than SNFA were held insufficient, and the Court found a lack of general jurisdiction in that case.
So, my conclusion is that the plaintiff in this case has failed to meet its burden of showing continuous and systematic presence in Illinois.”
In open court, the trial court also explained why it rejected plaintiffs claim that the court had jurisdiction over defendant due to the fact that the helicopter crashed in Illinois:
“[I]f the plaintiff was to make a case at all, it had to be based on general jurisdiction, simply because the [helicopter] accident didn’t arise out of their Illinois contacts.
So, it doesn’t meet — putting aside the question of purposefully-directed activity, [the accident] simply did not arise out of the Illinois activity.”
On September 24, 2008, the trial court found that there was no just reason to delay either enforcement or appeal of its ruling. Plaintiff filed a notice of appeal, appealing the orders dated August 26, 2009, and September 24, 2009, as well as earlier orders related to discovery. This appeal followed.
ANALYSIS
I. Standard of Review
“The plaintiff bears the burden of establishing a prima facie basis upon which jurisdiction over an out-of-state resident may be exercised.” Roiser v. Cascade Mountain, Inc.,
II. Applicable Statutory and Constitutional Provisions
Section 2—209 of the Code of Civil Procedure (735 ILCS 5/2—209 (West 2002)) sets forth when Illinois courts will exercise personal jurisdiction over a defendant. Subsection (a), which governs specific jurisdiction, lists 14 different actions by a defendant which will subject him or her to Illinois jurisdiction. 735 ILCS 5/2—209(a)(1) through (a)(14) (West 2002). A defendant is subject to jurisdiction for “any cause of action arising from the doing of any” of these “acts,” which include the transaction of business or the commission of a tort. 735 ILCS 5/2—209(a)(1) through (a)(14) (West 2002). Subsection (b), which governs general jurisdiction, lists four grounds, only two of which apply to corporations: “(3) *** a corporation organized under the laws of this State; or (4) *** [a] corporation doing business within this State.” 735 ILCS 5/2—209(b)(3), (b)(4) (West 2002). Subsection (c) is a “catchall provision” which permits Illinois courts to “ ‘exercise jurisdiction on any other basis now or hereafter permitted by the Illinois Constitution and the Constitution of the United States.’ ” Roiser,
An exercise of jurisdiction under any of the three statutory subsections must also comport with the due process clause. The due process clause limits a state’s exercise of personal jurisdiction over a nonresident defendant to those instances where the defendant had at least “minimum contacts” with the state. Roiser,
“The minimum contacts standard ensures that ‘requiring the out-of-state resident to defend in the forum does not “ ‘offend traditional notions of fair play and substantial justice.’ ” ’ [Citation.] The minimum contacts analysis must be based on some act by which the defendant purposefully availed itself of the privilege of conducting activities within the forum state, in order to assure that a nonresident will not be haled into a forum solely as a result of random, fortuitous, or attenuated contacts with the forum or the unilateral acts of a consumer or some other third person.” (Internal quotation marks omitted.) Roiser,367 Ill. App. 3d at 561-62 .
The minimum contacts needed for jurisdiction depends on whether the jurisdiction asserted is general or specific jurisdiction. MacNeil,
In the case at bar, plaintiff claimed that this court could exercise jurisdiction under subsection (a), (b) or (c). Plaintiff claimed that this court had specific jurisdiction, under subsection (a), because of “[t]he commission of a tortious act within this State.” 735 ILCS 5/2—209(a)(2) (West 2002). Plaintiff also claimed that this court had general jurisdiction under subsection (b), because defendant was a “corporation doing business within this State.” 735 ILCS 5/2—209(b)(4) (West 2002). Last, but not least, plaintiff claimed that this court could exercise jurisdiction under the catchall provision of subsection (c). 735 ILCS 5/2—209(c) (West 2002). As noted above, the trial court rejected plaintiffs claims of jurisdiction under subsections (a) and (b), but did not make a specific ruling with respect to subsection (c).
III. Minimum Contacts
For the reasons discussed below, we find that the court had specific jurisdiction over defendant, under both subsections (a) and (c). 735 ILCS 5/2—209(a)(2), (c) (West 2002). Since we find that jurisdiction exists under these subsections, we do not review plaintiffs claim of general jurisdiction under subsection (b). In addition, “[w]hile defendant has contested some of the facts asserted by plaintiff, the facts relied on by this court in finding specific personal jurisdiction are not contested by defendant.” Bell v. Don Prudhomme Racing, Inc.,
With specific jurisdiction, a nonresident defendant has minimum contacts with the forum state, when the defendant has purposefully directed its activities at the forum, and the litigation results from alleged injuries that arise out of or relate to those activities. Bell,
In the case at bar, both parties cite the United States Supreme Court’s decision in Asahi Metal Industry Co. v. Superior Court,
Asahi concerned a cause of action only for indemnification. Asahi,
All nine justices found that, for a forum to exercise personal jurisdiction over a defendant, (1) the defendant must have minimum contacts with the forum, and (2) it must be reasonable for the forum to exercise jurisdiction. Asahi,
However, the justices disagreed about whether minimum contacts existed, on the facts before them. Four justices believed that minimum contacts did not exist. Asahi,
Even the four justices who did not find minimum contacts cited with approval the decision of Rockwell International Corp. v. Costruzioni Aeronautiche Giovanni Agusta, S.p.A.,
The defendant in Rockwell was SNFA, the same defendant that is before us, and the facts in Rockwell are almost indistinguishable from the facts in our case. Like we hold today, the Rockwell court held that the forum state, which was the site of the crash, could exercise specific personal jurisdiction over defendant SNFA. Rockwell,
First, the Rockwell court found that the cause of action arose from defendant’s activity in the state. Rockwell,
In addition, the Rockwell court reached the conclusion that the sale occurred in the forum state, even though the bearings had traveled through a similar distribution network as the bearings in our case—a sale by defendant to Agusta in Italy, a sale by Agusta to its American distributor, and then a sale to an American consumer. Rockwell,
Second, the Rockwell court found that minimum contacts existed. Defendant argued against minimum contacts claiming, exactly as it does in our case, that its sales of ball bearings to Agusta were confined to Europe and that a court should not blur the distinction between Agusta and defendant. Rockwell,
SNFA does not deny that it knew that Agusta helicopters were sold throughout the United States. SNFA also does not deny that it knew that Agusta had an American subsidiary for the purpose of
American distribution.
3
“Given the distribution system, SNFA had ample reason to know and expect that its bearing, as a unique part of a larger product, would be marketed in any or all states, including [the forum state].” (Emphasis in original.) Rockwell,
In essence, Agusta is the marketer and distributor to the consumer of their joint and ultimate product. SNFA has chosen to leave to Agusta the marketing and distribution to the consumer. Agusta is thus the conduit through which this SNFA product, custom-made for Agusta, reaches the ultimate consumers.
The facts of Asahi are distinguishable from the facts at bar, as the Asahi Court itself recognized. Asahi,
Although Rockwell is not binding on us, we find its logic persuasive, as did the United States Supreme Court. The trial court erred in not recognizing that the tort occurred in Illinois and that the injuries related to defendant’s activities directed toward the forum. For the reasons discussed above, we find that minimum contacts existed.
IV Reasonableness
In addition to establishing defendant’s minimum contacts with Illinois, plaintiff must show, to comply with federal due process, the reasonableness of our state’s exercise of personal jurisdiction over defendant. Asahi,
In the case at bar, most of these factors favor finding jurisdiction in Illinois. First, Illinois has an interest in resolving a dispute concerning a helicopter crash and a death that occurred in Illinois, particularly when that tragedy concerns the provision of ambulance services to Illinois residents and citizens. 4 Second, plaintiff as executor has a strong interest in obtaining relief for his brother’s estate. Third, as the crash site of an aircraft, Illinois has a strong interest in the efficient resolution of the resulting dispute. Fourth, Illinois also has a strong interest in advancing the substantive social policy of compensating victims for torts occurring in Illinois and of ensuring the safety of the air ambulance services utilized by its citizens.
In Asahi, our Supreme Court found reasonableness lacking where the suit was “about indemnification rather than safety standards.” Asahi,
We recognize “the heavy burden on the alien defendant” of having to litigate on our soil. Asahi,
In addition, we observe that “SNFA designed and manufactured a component that was incorporated into a product which was intended to be, and was, in fact, sold” in the United States. Rockwell,
For these reasons, we find it is reasonable for Illinois to exercise jurisdiction over defendant.
V. Illinois Due Process
Lastly, personal jurisdiction over defendant must also comply with the due process clause of the Illinois Constitution. Bell,
Here, an aircraft crashed on Illinois soil; the aircraft was involved in providing ambulance services to Illinois citizens and residents; the allegedly defective part was custom-made by defendant for this model of aircraft; by custom-making parts for a helicopter manufacturer, defendant made itself dependent on the marketing and distribution network of the manufacturer; and it was reasonably foreseeable to defendant that it would be haled into an American forum, when it had previously been subject to jurisdiction for the alleged failure of the same part in the same model aircraft, manufactured by the same company.
CONCLUSION
For the above reasons, we reverse the trial court’s dismissal for lack of personal jurisdiction and remand for further proceedings consistent with this opinion.
Reversed and remanded.
Notes
The United States Supreme Court has taken up the issue of minimum contacts, subsequent to Asahi. E.g. Burnham, v. Superior Court,
We discuss reasonableness, below, in the following section of this opinion.
Although we rely exclusively on the admissions that defendant made in this case and on this appeal, we observe that the Rockwell court also found that SNFA had “worked closely” with Agusta engineers to develop the ball bearings for the A 109 helicopter, and that SNFA was aware that the A 109 helicopter was “targeted” for the market in the United States, as well as Europe. Rockwell,
In Asahi, the Supreme Court found that because “the plaintiff is not a California resident, California’s legitimate interests in the dispute have considerably diminished.” Asahi,
The United States Supreme Court found that, although pressure would be placed on a submanufacturer if the ultimate manufacturer was found liable for a defective part, “[t]he possibility of being haled into [an American] court as a result of an accident involving [the submanufacturer’s] components undoubtedly creates an additional deterrent to the manufacture of unsafe components.” Asahi,
