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But the court there went on to say:. Moreover, Kansas City and Santa Fe derive further benefits from the New Jersey shippers who send shipments via connecting carriers over their out-of-state lines.
Kansas City and Santa Fe further argue that the exercise of jurisdiction in this case casts an unreasonable burden on interstate commerce and therefore cannot stand. The threat of foreign suits is but one of the costs of railroads doing business in many states. The test, as was said in Starr v.
They had moved to dismiss the third-party complaint or to quash the service for the reason that they lacked sufficient “minimum contacts” with New Jersey and for the further reason that the doctrine of forum non conveniens militated against Reagent maintaining its suit in New Jersey. The confusion stemmed from the fact that the Supreme Court did not expressly overrule the earlier cases but rather superimposed the “minimum contacts” test. As the court observed in Corporate Development Specialists, Inc.
Nonetheless, the initiation of advantageous economic relationships by the solicitors of Kansas City and Santa Fe constitutes a significant aspect of “doing business. The railroads rely on the holding in B.
The carriers contend that their solicitation of business and the bailment arrangement whereby their cars pass over New Jersey lines constitute insufficient “contacts” with New Jersey. It constitutes, in the practical sense, both “doing business” and “transacting business,” and should do so in a legal sense.
State of Washington, above, U. The sales contract called for delivery of the tanks from Amercoat’s plant in Ardmore, Oklahoma, to Reagent’s operation at Port Arthur, Texas. They also cite later cases which entrenched and extrapolated the Green holding into the so-called “solicitation plus” doctrine, which basically establishes that something more is required than just solicitation by a nonresident corporation, e.
Once a court 30 competent jurisdiction entertains the action, only a strong showing of very great hardship upon defendant will defeat further proceedings in the forum. Accordingly, there is no apparent basis for the carriers’ claim of an unreasonable impediment to interstate commerce in this case.
Actions based on contract, on the other hand, appear to be allowed to proceed to trial in the chosen forum, except in the most exceptional of circumstances, even where the relationship of the action and of the parties to the State is tenuous. Reagentor to quash service of process.
Additionally, New Jersey possesses a direct state interest in providing a court system for its citizens. The chosen forum must be manifestly inappropriate. As has been historically true of the railroads, the private interest is served at least as greatly as the public amerclat. However, just what may constitute the “plus” is not defined, but is resolved on the facts of the particular case.
Amercoat Corp. v. Reagent Chem. & Research Inc.
Berry, qmercoat, 25 N. Early in the century jurisdiction was thought to be based on “power” amercoah strictly delimited by state boundaries. Since we hold that the substituted service of process upon Kansas City and Santa Fe under the “long arm” provision of R. Therefore, the appropriate test in determining whether the New Jersey court’s exercise of jurisdiction over the third-party defendants violates due process of law is an overall weighing of the connections of the railroads with this State and of the State’s interest in the proceedings.
Perhaps the greatest shift in the analysis of the “doing business” test since International Shoe has been the change in emphasis from the quantum of activities to their continuity. But emphasis continues upon the element of harassment and vexation notwithstanding reference also to the element of trial convenience. Prior to the International Shoe holding, increasing judicial dissatisfaction with the inflexibility of the mechanical rules caused a perceptible trend of amercota of the requirements as to what constituted “solicitation plus.
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Such “systematic and continuous” soliciting must be viewed as a relevant factor in judging the inherent fairness of the asserted jurisdiction.
The court noted that the sales activities of defendant were “systematic and continuous” and indirectly generated a significant volume of business, and that, in conducting its intrastate affairs, it received the benefits and protection of the local laws.
Gilbert, above, U. However, they amercoaf unsuccessful in quashing the substituted service of process made under the cited rule. Forum non conveniens being essentially an equitable doctrine to be applied in the discretion of the trial judge, we will not substitute our judgment for his since we find no showing of clear abuse of that discretion. American Lumbermen’s Mutual Amercoah.
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Since the corporation had no real physical presence, as such, the fiction arose that this artificial person was “present” in the amdrcoat of its incorporation or wherever it was “doing business. It must be recognized that the “mere solicitation” test or “solicitation plus” doctrineas articulated by succeeding courts, relies basically on the Green and McKibbin holdings. The bailment arrangement, while perhaps beneficial to the commercial interests of the nation, is surely of equal benefit to the hard-pressed railroads.