On petition for writ of certiorari to the United States Court of
Appeals for the Seventh Circuit.
The petition for a writ of certiorari is denied.
Mr. Justice WHITE, with whom Mr. Justice POWELL joins,
dissenting.
I dissent from the denial of the petition for certiorari.
Petitioner, a Wisconsin corporation with its place of business
in Milwaukee, Wis., contracted with respondent, a West
Page 445 U.S.
907 , 908
Virginia corporation with its principal place of business in
Charleston, W. Va., to sell structural assemblies for incorporation
by respondent into the outlet works of a dam and reservoir in
Virginia. Aside from the contacts arising from the negotiation,
execution, and performance of this contract, respondent has never
had any connection with the State of Wisconsin. Petitioner's agent
initiated the negotiations by visiting respondent's offices in West
Virginia and delivering a quotation. The quotation provided that
"[a]ny order arising out of this proposal . . . is subject to home
office acceptance at Milwaukee, Wisconsin." Respondent then mailed
petitioner its purchase order referring to petitioner's quotation.
Petitioner signed the purchase order in Milwaukee and returned it
to respondent together with a proposed modification, which became
part of the contract, when respondent treated the modified order as
effective. During the course of their negotiations both parties
initiated other communications between their respective offices
either by telephone or by mail.
The contract provided that the goods were to be shipped "F. O.
B. SELLERS [sic ] PLANT MILWAUKEE, WISCONSIN with freight allowed
to rail siding nearest project site," and stated that Wisconsin law
would govern the transaction. According to petitioner, Pet. for
Cert. 4, the total contract price was $1,281,750.00. Petitioner
proceeded to manufacture the goods at its plant in Wisconsin and
ship them to the project site in Virginia. Respondent asserted that
some of the goods were defective and withheld part of the purchase
price.
Petitioner thereupon filed the present action in a Wisconsin
state court to recover the unpaid balance on the contract. It
alleged personal jurisdiction under Wisconsin's long-arm statute,
Wis.Stat. 801.05, 801. 11 (1975), which has been interpreted to
reach as far as due process will allow, Flambeau Plastics Corp. v.
King Bee Mfg. Co., 24 Wis.2d 459, 464, 129 N.W.2d 237, 240 (1964).
Respondent removed the case
Page 445 U.S.
907 , 909
to the United States District Court for the Eastern District of
Wisconsin. It there filed a motion to dismiss for lack of personal
jurisdiction or, in the alternative, to transfer the case to a
federal district court in Virginia or West Virginia. The court
denied the motion and entered summary judgment for petitioner on
the merits.
The Court of Appeals for the Seventh Circuit reversed,
597 F.2d
596 ( 1979), holding that respondent's contacts with the
Wisconsin forum were not sufficient to satisfy the "minimum
contacts" test of International Shoe Co. v. Washington,
326 U.S.
310, 316, 158 ( 1945). The court found that the contacts with
the forum consisted solely of "unilateral activity of [one] who
claim[s] some relationship with a nonresident defendant" of the
type found insufficient to sustain personal jurisdiction in Hanson
v. Denckla,
357 U.S.
235, 253, 1239 (1958). Although respondent ordered the goods
from a Wisconsin corporation with knowledge that they were likely
to be manufactured in Wisconsin, respondent did not thereby
"purposefully avai[l] itself of the privilege of conducting
activities within the forum State," ibid., since the contract left
petitioner with absolute discretion as to where the goods would be
manufactured. Nor did the Court of Appeals find the requisite
minimum contacts in (a) the contract provision requiring shipment
f. o. b. petitioner's plant in Milwaukee, (b) respondent's use of
interstate telephone and mail services to communicate with
petitioner in Wisconsin, or (c) respondent's sending the purchase
order to Wisconsin. The Court of Appeals therefore remanded the
case to the District Court with directions to vacate the judgment
and either dismiss the case or transfer it to another district.
As the Court of Appeals noted, 597 F.2d, at 601, the question of
personal jurisdiction over a nonresident corporate defendant based
on contractual dealings with a resident plaintiff has deeply
divided the federal and state courts. Cases arguably in conflict
with the decision below include: Pedi Bares, Inc. v. P & C Food
Markets, Inc.,
567 F.2d
933 ( CA10
Page 445 U.S.
907 , 910
1977); United States Railway Equipment Co. v. Port Huron &
Detroit R. Co.,
495 F.2d
1127 (CA7 1974); Product Promotions, Inc. v. Cousteau,
495 F.2d
483, 494-499 (CA5 1974); Ajax Realty Corp. v. J. F. Zook, Inc.,
493 F.2d
818 (CA4 1972), cert. denied sub nom. Durell Products, Inc. v.
Ajax Realty Corp., 411 U.S. 966 (1973); In-Flight Devices Corp. v.
Van Dusen Air, Inc.,
466 F.2d
220 (CA6 1972); O'Hare Int'l Bank v. Hampton,
437 F.2d
1173 (CA7 1971); Electro-Craft Corp. v. Maxwell Electronics
Corp.,
417 F.2d
365 (CA8 1969); Manufacturers' Lease Plans, Inc. v. Alverson
Draughon College, 115 Ariz. 358,
565 P.2d 864 (
1977) (en banc); Colony Press, Inc. v. Fleeman, 17 Ill.App.3d 14,
308 N.E.2d 78 (1974); Miller v. Glendale Equipment & Supply,
Inc.,
344 So. 2d
736 ( Miss.1977); McIntosh v. Navaro Seed Co., 81 N.M. 302,
466 P.2d 868
(1970 ); State ex rel. White Lumber Sales, Inc. v. Sulmonetti, 252
Or. 121,
448 P.2d
571 (1968) (en banc); Proctor & Schwartz, Inc. v. Cleveland
Lumber Co., 228 Pa.Super. 12, 323 A.2d 11 (1974); Zerbel v. H. L.
Federman & Co., 48 Wis.2d 54,
179 N.W.2d
872 (1970), appeal dism'd, 402 U.S. 902 (1971). Cases arguably
supporting the decision below include: Republic Int'l Corp. v. Amco
Engineers, Inc.,
516 F.2d
161, 167 ( CA9 1975) (dictum); Whittaker Corp. v. United
Aircraft Corp.,
482 F.2d
1079, 1084-1085 (CA1 1973) (construing state law); E. R.
Callender Printing Co. v. District Court, 182 Colo. 25,
510 P.2d 889
(1973) (en banc ) (construing state law); Rath Packing Co. v.
Intercontinental Meat Traders, Inc.,
181 N.W.2d 184
(Iowa 1970); O. N. Jonas Co. v. B & P Sales Corp., 232 Ga. 256,
206 S.E.2d 437
(1974) (construing state law); Marshall Egg Transport Co. v.
Bender-Goodman Co., 275 Minn. 534,
148 N.W.2d
161 (1967) (construing state law); Conn v. Whitmore, 9 Utah 2d
250,
342 P.2d 871
(1959) (construing state law); Sun-X Int'l Co. v. Witt, 413 S.W.2d
761 (Tex.Civ.App.1967). The question at issue is one of
considerable importance to contractual dealings between purchasers
and sellers located in
Page 445 U.S.
907 , 911
different States. The disarray among federal and state courts
noted above may well have a disruptive effect on commercial
relations in which certainty of result is a prime objective. That
disarray also strongly suggests that prior decisions of this Court
offer no clear guidance on the question. I would grant the petition
in order to address this important problem.
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