Phillips Petroleum Co. v. Shutts | |
---|---|
Argued February 25, 1985 Decided June 26, 1985 | |
Full case name | Phillips Petroleum Company v. Shutts et al. |
Docket no. | 84-233 |
Citations | 472 U.S. 797 ( more ) 105 S. Ct. 2965; 86 L. Ed. 2d 628; 1985 U.S. LEXIS 104 |
Court membership | |
| |
Case opinions | |
Majority | Rehnquist, joined by Burger, Brennan, White, Marshall, Blackmun, O'Connor |
Concur/dissent | Stevens |
Powell took no part in the consideration or decision of the case. |
Phillips Petroleum Co. v. Shutts, 472 U.S. 797 (1985), was a conflict of laws case decided by the United States Supreme Court. [1]
Phillips Petroleum Company was sued in a class action lawsuit in Kansas for overdue interest payments. The lawsuit was joined by plaintiffs from all fifty U.S. states. The Kansas courts applied Kansas law to determine the legal liability of the defendant and remedies as to all plaintiffs, including the 97% who had no contacts with Kansas. Phillips appealed, arguing that the trial court had to look to the laws of different states for different plaintiffs. The Kansas Supreme Court upheld the decision, finding that it is permissible for the absent plaintiffs to have less contact with Kansas than the defendants, and that these plaintiffs have chosen Kansas law. The Kansas Supreme Court found that forum law controlled absent 'compelling reasons' for another law to control, comparing the suit to one against a 'common fund' in Kansas.
Phillips also noted that many of the absent plaintiffs were absent because they were deemed to have 'consented' to be represented by the class representative by not returning a form to opt-out of the litigation. Phillips contended that failure of the absent plaintiffs to request exclusion can not equal consent, and therefore that the Kansas court has no jurisdiction over the claims of absent plaintiffs. Phillips asserted that adverse decisions of Kansas court may bind absent plaintiffs by res judicata .
The Supreme Court addressed two questions. The first was whether the use of Kansas law for all plaintiffs violated Fourteenth Amendment Due Process, or the Full Faith and Credit clause. The second was whether it was sufficient to distribute a form and then deem the recipients to be a party to the litigation if they did not opt out of the litigation.
The Supreme Court held that the defendant's desire is irrelevant, otherwise forum shopping would rule. However, it also found that the state can not use assumption of jurisdiction as weight towards applying its own law. The use of Kansas law for all plaintiffs was held to be arbitrary and unfair; Kansas must consider the law of each state from which parties have come.
As for the opt-out issue, fewer burdens on plaintiffs means less Due Process required, so opt-out was permissible.
Court notes that individual stakes are too small for the case to be brought as anything but a class action – no one would go to the expense of suing for $100, so plaintiffs get no day in court other than this action. Opt-out is enough, so long as state provides a process where absent plaintiffs get notice and opportunity to be heard.
As for minimum contacts, class action plaintiffs need no contacts if they consent to jurisdiction.
Justice Stevens wrote that Kansas actually did examine laws of other states and found no direct or substantive conflict; ergo, no problem with Kansas applying Kansas law.
A class action, also known as a class action lawsuit, class suit, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group. The class action originated in the United States and is still predominantly an American phenomenon, but Canada, as well as several European countries with civil law, have made changes in recent years to allow consumer organizations to bring claims on behalf of consumers.
Personal jurisdiction is a court's jurisdiction over the parties, as determined by the facts in evidence, which bind the parties to a lawsuit, as opposed to subject-matter jurisdiction, which is jurisdiction over the law involved in the suit. Without personal jurisdiction over a party, a court's rulings or decrees cannot be enforced upon that party, except by comity; i.e., to the extent that the sovereign which has jurisdiction over the party allows the court to enforce them upon that party. A court that has personal jurisdiction has both the authority to rule on the law and facts of a suit and the power to enforce its decision upon a party to the suit. In some cases, territorial jurisdiction may also constrain a court's reach, such as preventing hearing of a case concerning events occurring on foreign territory between two citizens of the home jurisdiction. A similar principle is that of standing or locus standi, which is the ability of a party to demonstrate to the court sufficient connection to and harm from the law or action challenged to support that party's participation in the case.
A lawsuit is a proceeding by one or more parties against one or more parties in a civil court of law. The archaic term "suit in law" is found in only a small number of laws still in effect today. The term "lawsuit" is used with respect to a civil action brought by a plaintiff who requests a legal remedy or equitable remedy from a court. The defendant is required to respond to the plaintiff's complaint or else risk default judgment. If the plaintiff is successful, judgment is entered in favor of the plaintiff, and the Court may impose the legal and/or equitable remedies available against the defendant (respondent). A variety of court orders may be issued in connection with or as part of the judgment to enforce a right, award damages or restitution, or impose a temporary or permanent injunction to prevent an act or compel an act. A declaratory judgment may be issued to prevent future legal disputes.
Trespass is an area of tort law broadly divided into three groups: trespass to the person, trespass to chattels, and trespass to land.
The Nonintercourse Act is the collective name given to six statutes passed by the United States Congress in 1790, 1793, 1796, 1799, 1802, and 1834 to set boundaries of American Indian reservations. The various acts were also intended to regulate commerce between White Americans and citizens of Indigenous nations. The most notable provisions of the act regulate the inalienability of aboriginal title in the United States, a continuing source of litigation for almost 200 years. The prohibition on purchases of Indian lands without the approval of the federal government has its origins in the Royal Proclamation of 1763 and the Confederation Congress Proclamation of 1783.
The tort of negligent infliction of emotional distress (NIED) is a controversial cause of action, which is available in nearly all U.S. states but is severely constrained and limited in the majority of them. The underlying concept is that one has a legal duty to use reasonable care to avoid causing emotional distress to another individual. If one fails in this duty and unreasonably causes emotional distress to another person, that actor will be liable for monetary damages to the injured individual. The tort is to be contrasted with intentional infliction of emotional distress in that there is no need to prove intent to inflict distress. That is, an accidental infliction, if negligent, is sufficient to support a cause of action.
In the law of the United States, diversity jurisdiction is a form of subject-matter jurisdiction that gives United States federal courts the power to hear lawsuits that do not involve a federal question. For a federal court to have diversity jurisdiction over a lawsuit, two conditions must be met. First, there must be "diversity of citizenship" between the parties, meaning the plaintiffs must be citizens of different U.S. states than the defendants. Second, the lawsuit's "amount in controversy" must be more than $75,000. If a lawsuit does not meet these two conditions, federal courts will normally lack the jurisdiction to hear it unless it involves a federal question, and the lawsuit would need to be heard in state court instead.
Forum non conveniens (FNC) is a mostly common law legal doctrine through which a court acknowledges that another forum or court where the case might have been brought is a more appropriate venue for a legal case, and transfers the case to such a forum. A change of venue might be ordered, for example, to transfer a case to a jurisdiction within which an accident or incident underlying the litigation occurred and where all the witnesses reside.
Shaffer v. Heitner, 433 U.S. 186 (1977), is a United States corporate law case in which the Supreme Court of the United States established that a defendant's ownership of stock in a corporation incorporated within a state, without more, is insufficient to allow that state's courts to exercise jurisdiction over the defendant. The case set forth a framework for evaluating when a defendant will be deemed to have minimum contacts with the forum state sufficient for the exercise of jurisdiction to be consistent with due process under the Fourteenth Amendment.
An intentional tort is a category of torts that describes a civil wrong resulting from an intentional act on the part of the tortfeasor. The term negligence, on the other hand, pertains to a tort that simply results from the failure of the tortfeasor to take sufficient care in fulfilling a duty owed, while strict liability torts refers to situations where a party is liable for injuries no matter what precautions were taken.
Conflict of laws in the United States is the field of procedural law dealing with choice of law rules when a legal action implicates the substantive laws of more than one jurisdiction and a court must determine which law is most appropriate to resolve the action. In the United States, the rules governing these matters have diverged from the traditional rules applied internationally. The outcome of this process may require a court in one jurisdiction to apply the law of a different jurisdiction.
Long-arm jurisdiction is the ability of local courts to exercise jurisdiction over foreign defendants, whether on a statutory basis or through a court's inherent jurisdiction. This jurisdiction permits a court to hear a case against a defendant and enter a binding judgment against a defendant residing outside the jurisdiction concerned.
In the United States, removal jurisdiction allows a defendant to move a civil action or criminal case filed in a state court to the United States district court in the federal judicial district in which the state court is located. A federal statute governs removal.
World-Wide Volkswagen Corp v. Woodson, 444 U.S. 286 (1980), is a United States Supreme Court case involving strict products liability, personal injury and various procedural issues and considerations. The 1980 opinion, written by Justice Byron White, is included in the first-year civil procedure curriculum at nearly every American law school for its focus on personal jurisdiction.
International litigation, sometimes called transnational litigation, is the practice of litigation in connection with disputes among businesses or individuals residing or based in different countries.
Mt. Healthy City School District Board of Education v. Doyle, 429 U.S. 274 (1977), often shortened to Mt. Healthy v. Doyle, was a unanimous U.S. Supreme Court decision arising from a fired teacher's lawsuit against his former employer, the Mount Healthy City Schools. The Court considered three issues: whether federal-question jurisdiction existed in the case, whether the Eleventh Amendment barred federal lawsuits against school districts, and whether the First and Fourteenth Amendments prevented the district, as a government agency, from firing or otherwise disciplining an employee for constitutionally protected speech on a matter of public concern where the same action might have taken place for other, unprotected activities. Justice William Rehnquist wrote the opinion.
Sun Oil Co. v. Wortman, 486 U.S. 717 (1988), was a conflict of laws case decided by the United States Supreme Court.
Dart Cherokee Basin Operating Co. v. Owens, 574 U.S. 81 (2015), was a case in which the Supreme Court of the United States clarified procedures for removing a class action lawsuit from state court to federal court. The case involved a dispute about revenue from oil and gas leases in which the defendant filed a motion to remove the case from a state court in Kansas to the United States District Court for the District of Kansas. However, the plaintiff argued that the defendant's motion was defective because the defendant's notice of removal did not include evidence demonstrating that the amount in controversy satisfied the jurisdictional threshold. The United States District Court for the District of Kansas ultimately ruled the case should be returned to the state court, and the United States Court of Appeals for the Tenth Circuit declined to review the district court's decision.
Bristol-Myers Squibb Co. v. Superior Court of California, San Francisco County, 582 U.S. ___ (2017), was a United States Supreme Court case in which the Court held that California courts lacked personal jurisdiction over the defendant on claims brought by plaintiffs who are not California residents and did not suffer their alleged injury in California. It is part of a group of six cases decided since 2011 that have greatly changed the application of personal jurisdiction.
Home Depot U. S. A., Inc. v. Jackson, 587 U.S. ___ (2019), was a United States Supreme Court case which determined that a third-party defendant to a counterclaim submitted in a state-court civil action cannot remove their case to federal court. The Court explained, in a 5–4 decision, that although a third-party counterclaim defendant is a "defendant to a claim," removal can only be performed by the defendant to a "civil action." And this holds true even when the counterclaim is in the form of a class action. The Class Action Fairness Act of 2005 permits removal by "any defendant to a class action" but this does not extend removal rights to a third-party counterclaim defendant because they are not a defendant to the original case.