International Shoe Co. v. State of Washington,
326 US 310 (1945)
International Shoe Co. v. State of Washington is one of the very popular cases, which a landmark decision was made by the U.S Supreme Court holding that a civil defendant could not be subjected to personal jurisdiction by the courts of a state unless the defendant had certain minimum contacts with the state.
Defendant was an out of state company that employed salesmen within the state of Washington. State of Washington sued defendant, International Shoes Co. to recover unpaid unemployment taxes and served defendant in two ways: by mail and second by serving one of its salesmen within the state. Defendant appealed from a verdict for Washington, claiming that Washington had no personal jurisdiction over defendant.
Synopsis of rule of law:
To be establishing a personal jurisdiction for a state over a defendant, the defendant must have minimum contacts with the state, so that exercising jurisdiction over defendant would not offend “traditional notions of fair play and substantial justice”.
Defendant International Shoe Co. was a company based in Delaware, with an office in St. Louis Missouri. Defendant employed salesmen who reside in State of Washington to sell the company product in the state. Defendant was regularly shipped orders of shoes to the salesmen. The salesmen will accept the shipped order, and he will display the products at places in Washington. Salesmen was compensated with the commission for sale the products. The salesmen were also reimbursed for the cost for renting the business places around in state of Washington. The International Shoe Co. didn’t have any offices in state of Washington, but they were rent out showrooms in hotels. Salesmen didn’t have any authority to make contracts or collections. Prices, terms, acceptance or rejection of shoes orders were established through St. Louis. The state of Washington brought suit against...
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