Personal Jurisdiction

McGee v. International Life Insurance Co.

355 U.S. 220 (1957)
Procedure:
The Texas Courts refused to enforce the judgment claiming that Californias
exercise of jurisdiction was improper. Plaintiff (petitioner) appealed the Texas
decision to the U.S. Supreme Court.
Facts:
Petitioner was a resident of California, purchased a life insurance policy from (an
insurer subsequently bought by respondent, which) mailed petitioner a
reinsurance certificate to his residence in California, offering to insure him.
Petitioner accepted the offer and from that time until his death, he paid premiums
by mail from his home in California to respondents office in Texas. Petitioner
committed suicide and when respondent was notified of the manner of
petitioners death, respondent refused to pay claiming that suicide was excluded
by the policy. Neither the original insurer nor responded has ever had any office
or agent in California.
Issue:
Can jurisdiction be established by a corporations isolated activity within the
forum state were the case arises out of resulting from that activity?
Law:
States can exercise jurisdiction over a defendant whos the contacts with that
state consist of only a single act, provided that that act is what gave rise to the
claim for which jurisdiction is being sought, and was deliberately directed toward
the state.
Reasoning:
The contract was delivered in California, the premiums were mailed from there
and the petitioner was a resident of that state until he died. The state of California
as an invested interest in providing effective means of redress for its residents
when their insurers residents when their insurers refuse to pay claims. If the
residents were forced to follow the insurance company to a distant state in order
to hold it legally accountable they would be at a severe disadvantage.
Holding:
Reversed. Jurisdiction in California.