delivered the opinion of the court:
This appeal arises out of an action grounded in strict liability and negligence brought in the circuit court of Cook County. The plaintiff, Floyd Wiles, brought the action against the defendant, Morita Iron Works Company, Ltd. (hereinafter MIW), a Japanese corporation not licensed to do business in Illinois. The defendant filed a special and limited appearance and a motion to dismiss, challenging the in personam jurisdiction of the court, pursuant to the Illinois long arm statute (Ill. Rev. Stat. 1985, ch. 110, par. 2—209). The motion was supported by the affidavit of Motoo Morita, the defendant’s president. The trial court quashed the service of process on the defendant and dismissed the defendant from this action. The appellate court reversed the trial court’s order (
In his complaint the plaintiff alleged that the defendant manufactured, designed, and sold the air cell former in question, and that on April 11, 1983, the plaintiff was injured while cleaning the machine pursuant to his employment duties at Astro. In its motion to dismiss, the defendant admitted that it manufactured the machine and that all four of the machines were delivered into the possession of the plaintiff’s employer in Japan, and stated that it was “entirely fortuitous” that two of the four machines were shipped by Astro to Illinois from Japan. The affidavit filed by Motoo Morita, the defendant’s president, in support of its motion to dismiss, revealed that MIW was primarily engaged in the business of manufacturing machinery used to make springs for automobiles. According to Morita, MIW has made a total of only nine air cell formers, four of which were purchased by Astro. None of the five remaining air cell formers were used in the United States. Morita further stated that the four machines purchased by Astro were delivered into the custody of Astro agents in Japan, and that Astro transported the machines from Japan. Morita also alleged that “MIW is informed and believes that two of the air cell formers were transported by Astro Packaging Co. to Alsip, Illinois.”
September 22 and 23,1980
September 17 — 19,1980
July 21-23,1981
September 24,1981
January 25 — 27, 1982
April 27 — May 1,1982
October 17-20,1983
Monchengladbach,
West Germany
Hawthorne, New Jersey
MIW plant, Japan
Hawthorne, New Jersey
MIW plant, Japan
MIW plant, Japan
MIW plant, Japan.
Morita stated that the contract was never negotiated in Illinois. All payments were received by MIW in Japan and sent by Astro from New Jersey. The affidavit reveals that gross income from the sale of air cell formers has amounted to less than 7.6% of the gross receipts of MIW from all sources. Morita also stated that MIW “does not own or operate any manufacturing plant or other business in Illinois”; that “MIW has not in the past employed any business or other agents in Illinois nor maintained any office in the State”; and that “[a]ll witnesses to the design process, manufacturing decisions, and assembly process are in Japan.”
The record in this case further reveals that MIW had been served with summons in Japan. Additionally, no counteraffidavits were filed by the plaintiff in response to the defendant’s motion to dismiss and supporting affidavit. The record does not include the contract between the Astro corporation and MIW for the sale of the four air cell formers.
After the motion to dismiss was briefed and argued, the trial judge held that the nonresident defendant did not have sufficient minimum contacts with the State of Illinois to sustain jurisdiction under the long arm statute (Ill. Rev. Stat. 1985, ch. 110, par. 2 — 209). The judge entered
The sole issue presented in this appeal is whether the defendant’s contacts with the State of Illinois are sufficient to subject the defendant to the in personam jurisdiction of the Illinois courts.
The plaintiff asserts here that personal jurisdiction of MIW is predicated upon sections 2 — 209(a)(1) and (a)(2) of the Illinois long arm statute, which provide:
“(a) Any person, whether or not a citizen or resident of this State, who in person or through an agent does any of the acts hereinafter enumerated, thereby submits such person, and, if an individual his or her personal representative, to the jurisdiction of the courts of this State as to any cause of action arising from the doing of any of such acts:
(1) The transaction of any business within this State;
(2) The commission of a tortious act within this State.” Ill. Rev. Stat. 1985, ch. 110, pars. 2 — 209(a)(1), (a)(2).
However, for the purpose of this appeal we need not determine whether the defendant’s activities meet the requirements of the long arm statute. Even assuming arguendo that the defendant’s activities did constitute the transaction of business or the commission of a tortious act within this State, the fact that jurisdiction may be predicated under the long arm statute does not necessarily mean that jurisdiction over this defendant is proper. The exercise of jurisdiction over this defendant must comport with the principles of due process, and in this case we find that it does not. See People ex rel. Mangold v. Flieger (1985),
“The Due Process Clause of the Fourteenth Amendment limits the power of a state court to render a valid personal judgment against a nonresident defendant.” (World-Wide Volkswagen Corp. v. Woodson (1980),
In Burger King Corp. v. Rudzewicz (1985),
In World-Wide Volkswagen the Supreme Court rejected the notion that foreseeability of causing injury in another State was sufficient to establish minimum contacts. (
By “purposefully availing” itself of opportunities in the forum State, such as by purposefully directing itself to forum residents, a defendant subjects itself to the possible exercise of that forum's jurisdiction. Satisfaction of this “purposeful availment” requirement ensures that an alien defendant will not be forced to litigate in a distant or inconvenient forum solely as a result of “random,” “fortuitous,” or “attenuated” contacts, or the unilateral act of a consumer or some other third person. (Burger King,
Once it has been determined that a defendant’s conduct establishes minimum contacts with the forum State, these contacts may be considered in light of several other factors to determine whether the assertion of in personam jurisdiction comports with due process. (Burger King,
Applying these principles to the facts before us, we hold that MIW did not have the requisite minimum contacts with the State of Illinois to subject it to the personal jurisdiction of the circuit court.
The thrust of the plaintiff’s due process argument here is that MIW should have reasonably anticipated being sued in Illinois because it directly sold its products to a New Jersey corporation that had an industrial plant in Illinois. Specifically, the plaintiff alleges that MIW must have had either “actual or constructive knowledge” that Astro had a plant in Illinois and therefore should have anticipated that the product may find its way into Illinois. According to the plaintiff, MIW’s intentional act of placing its products into the stream of commerce by delivering the air cell formers to Astro in Japan, coupled with MIW’s “actual or constructive” knowledge that some of these products would eventually find their way to Illinois, is sufficient to form the basis for State court jurisdiction under the due process clause.
Most recently, the United States Supreme Court in Asahi Metal Industry Co. v. Superior Court (1987),
Thereafter, the California Supreme Court reversed the court of appeals’ ruling and discharged the writ.
On appeal, the United States Supreme Court unanimously reversed the holding of the California Supreme Court. (Asahi,
To understand the differences between the positions of the various justices, in this extremely balkanized opinion, it is necessary to understand the differences between the narrow and broad versions of the stream of commerce theory. In Asahi, the four justices who adhered to the narrow version of the theory stated that a
Under the broad stream of commerce theory, on the other hand, so long as the defendant participates in the “regular and anticipated flow of products from manufacture to distribution to retail sale” in the forum State, and so long as the defendant is “aware that the final product is being marketed in the forum State,” minimum contacts between the defendant and the forum State have been established. Asahi,
The disagreement between Justice O’Connor and Justice Brennan flowed from their adoption of differing interpretations of the stream of commerce theory as a basis for establishing minimum contacts. Using the narrow version of the theory, four members of the Court concluded that even if Asahi had been aware that some of the valves sold to Cheng Shin would be incorporated into
In fact, a majority of the members of the Court in Asahi were only able to agree on a rationale for their decision, which depended not on the stream of commerce theory or minimum contacts but upon the unfairness of subjecting the defendant to California jurisdiction under the facts of the case. Eight members of the Court joined in that part of Justice O’Connor’s opinion which stated that:
“When minimum contacts have been established, often the interests of the plaintiff and the forum in the exercise of jurisdiction will justify even the serious burdens placed on the alien defendant. In the present case, however, the interests of the plaintiff and the forum in California’s assertion of jurisdiction over Asahi are slight. All that remains is a claim for indemnification asserted by Cheng Shin, a Taiwanese corporation, against Asahi. The transaction on which the indemnification claim is based took place in Taiwan; Asahi’s components were shipped from Japan to Taiwan. Cheng Shin has not demonstrated that it is more convenient for it to litigate its indemnification claim against Asahi in California rather than in Taiwan or Japan.” 480 U.S. at 114 ,94 L. Ed. 2d at 105-06 ,107 S. Ct. at 1034 .
The majority further found that California’s interest in resolving the dispute was minimal because Cheng Shin was not a California resident, and also because it was unclear that California law would be applied in litigating an indemnity claim relating to a transaction that took place in Taiwan. The majority also reasoned that consideration of the procedural and substantive policies of foreign nations (as opposed to those of the several States as suggested in World-Wide Volkswagen) and the need to advance and protect American foreign relations policies made jurisdiction particularly unreasonable when the burdens on alien defendants outweighed the minimal interests of the plaintiff and the forum State. The Court concluded by stating:
“Considering the international context, the heavy burden on the alien defendant, and the slight interests of the plaintiff and the forum State, the exercise of personal jurisdiction by a California court over Asahi in this instance would be unreasonable and unfair.”480 U.S. at 116 ,94 L. Ed. 2d at 107 ,107 S. Ct. at 1035 .
As can be seen from this exposition, it is not possible to determine from Asahi whether the broad or the narrow
The plaintiff in this case places principal reliance on Connelly v. Uniroyal, Inc. (1979),
In Gray, which involved a Wisconsin manufacturer, the court held that it was a fair inference from the record that a manufacturer of a commercial product in a State bordering Illinois had purposefully availed itself of the Illinois market even if it happened to convey its product to Illinois through independent middlemen. Here, in contrast, while it would be reasonable to assume that Morita had availed itself of the United States market, there is no showing in the record that Morita purposefully directed its products into Illinois. In fact, if it purposefully directed its products into any particular State, that State was New Jersey, and not Illinois.
Connelly v. Uniroyal is also distinguishable. In Connelly, the foreign defendant/manufacturer availed itself of the Illinois market to the extent that several thousand of its tires per year were sold to the ultimate consumer in Illinois. Here, in contrast, we have a single isolated transaction between MIW, a Japanese corporation, and Astro, a New Jersey-based corporation, which just happened to transport two of the four machines it purchased from MIW to Illinois. The mere presence of a product in a State, without more, is not sufficient to subject the foreign manufacturer to the jurisdiction of the Illinois courts.
Because personal jurisdiction here fails that threshold test of “minimum contacts,” we need not separately consider the convenience of any particular forum to the respective parties in this case. Factors such as the plaintiff’s interest in obtaining relief, the burden on the
“[T]he Due Process Clause ‘does not contemplate that a state may make binding a judgment in personam against an individual or corporate defendant with which the state has no contacts, ties, or relations.’ International Shoe Co. v. Washington, supra at 319. Even if the defendant would suffer minimal or no inconvenience from being forced to litigate before the tribunals of another State; even if the forum State has a strong interest in applying its law to the controversy; even if the forum State is the most convenient location for litigation, the Due Process Clause, acting as an instrument of interstate federalism, may sometimes act to divest the State of its power to render a valid judgment. Hanson v. Denckla, supra at 251, 254.” World-Wide Volkswagen,444 U.S. at 294 ,62 L. Ed. 2d at 499-500 ,100 S. Ct. at 565-66 .
We note further that we are also unpersuaded by the appellate court’s contention in the instant case that the
In conclusion, personal jurisdiction is resolved by considering the acts of the defendant. Due process mandates at the outset some deliberate effort by the defendant to do business in the forum State, “thus invoking the benefits and protections of its laws.” (Burger King,
For the foregoing reasons the judgment of the appellate court is reversed and the judgment of the circuit court is affirmed.
Appellate court reversed; circuit court affirmed.
JUSTICE STAMOS took no part in the consideration or decision of this case.
