GPO-CONAN-2017-10-15.pdf

938 as to the scope of application to be accorded

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cipal place of business is relevant in this connection.” 938 As to the scope of application to be accorded this “fair play and substantial justice” doctrine, the Court concluded that “so far as . . . [corpo- rate] obligations arise out of or are connected with activities within the State, a procedure which requires the corporation to respond to a suit brought to enforce them can, in most instances, hardly be said to be undue.” 939 Extending this logic, a majority of the Court ruled that an out- of-state association selling mail order insurance had developed suf- ficient contacts and ties with Virginia residents so that the state could institute enforcement proceedings under its Blue Sky Law by forwarding notice to the company by registered mail, notwithstand- ing that the Association solicited business in Virginia solely through recommendations of existing members and was represented therein by no agents whatsoever. 940 The Due Process Clause was declared not to “forbid a State to protect its citizens from such injustice” of having to file suits on their claims at a far distant home office of such company, especially in view of the fact that such suits could be more conveniently tried in Virginia where claims of loss could be investigated. 941 Likewise, the Court reviewed a California statute which sub- jected foreign mail order insurance companies engaged in contracts with California residents to suit in California courts, and which had 938 International Shoe Co. v. Washington, 326 U.S. 310, 316–17 (1945). 939 326 U.S. at 319. 940 Travelers Health Ass’n v. Virginia ex rel. State Corp. Comm’n, 339 U.S. 643 (1950). The decision was 5-to-4 with one of the majority Justices also contributing a concurring opinion. Id. at 651 (Justice Douglas). The possible significance of the con- currence is that it appears to disagree with the implication of the majority opinion, id. at 647–48, that a state’s legislative jurisdiction and its judicial jurisdiction are coextensive. Id. at 652–53 (distinguishing between the use of the state’s judicial power to enforce its legislative powers and the judicial jurisdiction when a private party is suing). See id. at 659 (dissent). 941 339 U.S. at 647–49. The holding in Minnesota Commercial Men’s Ass’n v. Benn, 261 U.S. 140 (1923), that a similar mail order insurance company could not be viewed as doing business in the forum state and that the circumstances under which its contracts with forum state citizens, executed and to be performed in its state of incorporation, were consummated could not support an implication that the foreign company had consented to be sued in the forum state, was distinguished rather than formally overruled. 339 U.S. at 647. In any event, Benn could not have survived McGee v. International Life Ins. Co., 355 U.S. 220 (1957), below. 2004 AMENDMENT 14—RIGHTS GUARANTEED
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authorized the petitioner to serve a Texas insurer by registered mail only.
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