1. Jurisdiction Michael I. Shamos, Ph.D., J.D.
Institute for Software Research
School of Computer Science
Carnegie Mellon University
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2. LAW OF COMPUTER TECHNOLOGY FALL 2018 © 2018 MICHAEL I. SHAMOS
Outline
Jurisdiction: how does a court acquire the power to hear and decide a case?
Subject matter jurisdiction
Can the court hear this type of case?
Personal jurisdiction
Does the court have power over the parties?
In rem jurisdiction: suing things
Does the court have power over particular things?
Latin res means “thing.” in rem = “against a thing”
The court in which a case is heard is called the forum, from Latin for “town square.” Plural: fora
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3. Subject-Matter Jurisdiction
Does the court have the power to decide this type (subject matter) of case?
Examples:
patent and copyright cases are federal only
state criminal prosecutions are heard only in state criminal court
contract cases between citizens of the same state cannot be heard in federal court
Iowa can’t try crimes under the Pennsylvania Crimes Code
A state can’t sue another state in any state court
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4. Subject-Matter Jurisdiction
Who decides whether a court has jurisdiction?
The court determines its own jurisdiction
This seems circular, but how else to do it?
Can’t have one master court deciding jurisdiction for every case
Saving grace: jurisdiction can be appealed, and if it violates the Constitution can go all the way to the U.S. Supreme Court
Lack of subject matter jurisdiction can be asserted at any time, even after trial or appeal
(Usually, an appeals court will only review an issue that was raised in a lower court. Subject matter jurisdiction is an exception.

5. Personal Jurisdiction
Even if a court has subject matter jurisdiction, it may not have power over the particular parties to the case
Such power is called “personal jurisdiction”
A court always has jurisdiction over the person who brought the case because he came to court voluntarily
A court always has jurisdiction over residents of the state in which it sits
A court may or may not have jurisdiction over non-residents
For example, Pennsylvania courts do not automatically have jurisdiction over residents of California
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6. Personal Jurisdiction
Can a French citizen sue an American in a French court? Does the court have jurisdiction?
Why or why not and when?
Does it matter what type of claim it is?
Can a California citizen sue a Pennsylvania citizen in a Pennsylvania court? Does the court have jurisdiction?
Can a California citizen sue a Pennsylvania citizen in a California court? Does the court have jurisdiction?
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7. Bases for Personal Jurisdiction
Historically, courts have based personal jurisdiction on four pillars (any one is sufficient)
Physical presence: defendant is present in the forum and personally served – gotcha!
Residence: defendant is habitually resident in the forum (but not necessarily present when the case is filed or heard)
Consent: defendant consents to jurisdiction, either in advance or by not contesting jurisdiction
Long-arm Statute: defendant commits acts bringing him within the forum’s long-arm statute
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8. Jurisdiction By Consent
Parties cannot confer subject matter jurisdiction on a court that does not have it
Parties can both confer and waive (not object to) personal jurisdiction by consent
Example: Google’s “Terms of Service” (as of 9/10/18)
“The laws of California, U.S.A., excluding California’s conflict of laws rules, will apply to any disputes arising out of or relating to these terms or the Services. All claims arising out of or relating to these terms or the Services will be litigated exclusively in the federal or state courts of Santa Clara County, California, USA, and you and Google consent to personal jurisdiction in those courts.”
There is a Federal court in Santa Clara county (San Jose, Northern District of California)
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9. Santa Clara County UNITED STATES Google is in Mountain View
CALIFORNIA
There is a Federal
Court in San Jose
Santa Clara County
San
Francisco

10. LAW OF COMPUTER TECHNOLOGY FALL 2018 © 2018 MICHAEL I. SHAMOS
Long-Arm Statutes
State laws that define the circumstances under which courts located in the state can exercise jurisdiction over out-of-state Defendants
Each state defines its own long-arm provisions
This seems self-serving. What are its limits?
Long-arm statutes cannot exceed the “due process” boundaries of the U.S. Constitution
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11. Pennsylvania Long-Arm Statute
A Pa. court may exercise jurisdiction over a person who acts directly or by an agent, by:
Transacting any business in this Commonwealth:
doing by any person in this Commonwealth of a series of similar acts for the purpose of realizing pecuniary benefit
doing of a single act in this Commonwealth for the purpose of thereby realizing pecuniary benefit with the intention of initiating a series of such acts.
shipping merchandise directly or indirectly into or through Pa.
engaging in any business or profession within Pa.
Contracting to supply services or things in Pa.
Causing harm or injury by act or omission in or out of Pa Pa. C.S. §5322

12. LAW OF COMPUTER TECHNOLOGY FALL 2018 © 2018 MICHAEL I. SHAMOS
What’s a Commonwealth?
Commonwealth means “free state,” not controlled by a king (Oliver Cromwell, 1649)
in the U.S., synonymous with “state.”
Among the U.S. “states,” 4 are called Commonwealths:
Pennsylvania, Massachusetts, Virginia
Kentucky
The first three were among the original 13 colonies when the U.S. was formed
Kentucky was part of VA but split in 1792 as the 15th state
Also, “a political unit having local autonomy but voluntarily united with the U.S.”
e.g. Puerto Rico, Northern Marianas Islands
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13. Special v. General Jurisdiction
General jurisdiction means the court has power to decide ANY dispute between the parties within its subject matter jurisdiction.
Example: a Pennsylvania court can hear any case against a Pennsylvania resident (within its subject matter jurisdiction).
Paul, a Pennsylvania resident travels to California and his car injures Cal, a California resident in California. Cal can sue Paul in Pennsylvania.
The Pennsylvania court has jurisdiction over Cal by consent (he brought the case) and over Paul (because Paul is a Pennsylvania resident, so there is general jurisdiction over Paul).
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14. Special v. General Jurisdiction
But: Cal may or may not be able to sue Paul in California, because California does NOT have general jurisdiction over Paul
California may have special jurisdiction over Paul, depending on California’s long-arm statute
If the case arose out of contacts with the state, the court may have special jurisdiction to hear that case
The standards for special jurisdiction are lighter than for general jurisdiction
Cal might be able to sue Paul in California for the auto accident, but not for other causes of action, like breach of contract, not arising in California
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15. California Long-Arm Statute
That’s it. That’s the whole thing!
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16. Personal Jurisdiction
Constitutional limitations
5th Amendment: “No person shall be “deprived of life, liberty, or property, without due process of law.” (Applies to federal government)
14th Amendment: “nor shall any State deprive any person of life, liberty, or property, without due process of law.”
What is a “person”?
A natural person
A “juristic person.” A partnership, corporation, limited liability company, trust, etc. An entity that can sue and be sued.
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17. LAW OF COMPUTER TECHNOLOGY FALL 2018 © 2018 MICHAEL I. SHAMOS
Due Process
What is “due process”?
‘due process’ means fundamental fairness and substantial justice. Vaughn v. State, 3 Tenn. Crim. App. 54, 456 S.W.2d 879, 883 (1970)
"An orderly proceeding wherein a person is served with notice, … and has an opportunity to be heard and to enforce and protect his rights before a court having power to hear and determine the case. Kazubowski v. Kazubowski, 45 Ill.2d 405, 259, N.E.2d 282, 290 (1970), cert. den. 400 U.S. 926
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18. International Shoe Co. v. Washington, 326 U.S. 310 (1945)
Incorporated in Delaware
Main place of business in Missouri
12 employees in Washington
WASHINGTON
DELAWARE
MISSOURI

19. Jurisdiction Over Non-Residents
Washington tried to collect unemployment compensation contributions based on the salaries of International Shoe’s employees in Washington
International Shoe refused to pay, saying the tax “interfered with interstate commerce” and was unconstitutional
Washington Supreme Court ruled payment was required
U.S. Supreme Court formulated the “minimum contacts” rule:
Does the party have sufficient “contacts” with the state that exercising jurisdiction will not “offend traditional notions of fair play and substantial justice”?
In the International Shoe case, “yes,” contacts were sufficient for SPECIAL JURISDICTION

20. Daimler AG v. Bauman et al. (Sp. Ct. 2014)
et al. is an abbreviation of et alii, Latin for “and others”
Daimler AG
AG = aktiengesellschaft, German for pubic limited company
German company, owns Mercedes-Benz
Barbara Bauman et al. (22 residents of Argentina)
Bauman alleges that; during a war in Argentina in ; Mercedes-Benz Argentina helped security forces kidnap, torture and kill employees of Mercedes-Benz Argentina
Daimler sells cars in California
No human rights violations took place in California
Bauman sued in U.S. District Court in the Northern District of California (San Francisco) for human rights violations
Does California have general jurisdiction over Daimler?
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21. HEADQUARTERS: DELAWARE PRINCIPAL PLACE OF BUSINESS:
Daimler AG v. Bauman (2014)
Daimler AG has multiple Mercedes-Benz subsidiaries around the world.
Relevant ones are in Germany, U.S. and Argentina
DAIMLER AG
HEADQUARTERS:
STUTTGART, GERMANY ●
MERCEDES-BENZ USA, LLC
HEADQUARTERS: DELAWARE
PRINCIPAL PLACE OF BUSINESS:
NEW JERSEY
MERCEDES-BENZ
USA, LLC HAS
INDEPENDENT CAR
DEALERS IN
CALIFORNIA
22 RESIDENTS
OF ARGENTINA
ARGENTINA
BUENOS AIRES

22. LAW OF COMPUTER TECHNOLOGY FALL 2018 © 2018 MICHAEL I. SHAMOS
Daimler AG v. Bauman (2014)
The Alien Tort Statute, 28 U.S.C. §1350 states:
“The district courts shall have original jurisdiction of any civil action by an alien for a tort only, committed in violation of the law of nations or a treaty of the United States.” (“tort only” means no criminal jurisdiction)
Bauman said that California had jurisdiction because of Daimler’s contacts with California through its subsidiaries
Mercedes-Benz has facilities in California
2.4% of Mercedes sales worldwide occur in California
The District Court dismissed the case, finding insufficient contacts between Daimler and California
The Ninth Circuit Court of Appeals reversed, finding sufficient contacts based on prior Supreme Court cases
Daimler appealed to the U.S. Supreme Court
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23. Daimler AG v. Bauman (2014)
The Supreme Court wrote: “This case concerns the authority of a court in the United States to entertain a claim brought by foreign plaintiffs against a foreign defendant based on events occurring entirely outside the United States.”
“The canonical opinion in this area remains International Shoe, in which we held that a State may authorize its courts to exercise personal jurisdiction over an out-of-state defendant if the defendant has ‘certain minimum contacts with [the State] such that the maintenance of the suit does not offend “traditional notions of fair play and substantial justice.”
A “court may assert general jurisdiction over foreign (sister-state or foreign-country) corporations to hear any and all claims against them when their affiliations with the State are so ‘continuous and systematic’ as to render them essentially at home in the forum State.” Daimler did not have those contacts.
Case dismissed.

24. LAW OF COMPUTER TECHNOLOGY FALL 2018 © 2018 MICHAEL I. SHAMOS
Flowchart of Jurisdiction If Defendant Is Outside the Forum and Has Not Consented
DOES THE
COURT HAVE
SUBJECT MATTER
JURISDICTION?
NEW
CASE NO
YES
DID THE
CASE ARISE
OUT OF CONTACTS
WITH THE
FORUM?
YES, SPECIAL
PERSONAL
JURISDICTION
NEEDED
NO, GENERAL
DOES A
LONG-ARM
STATUTE
APPLY? IS
INTERNATIONAL
SHOE SATISFIED?
(FAIR PLAY AND
SUBSTANTIAL
JUSTICE)
COURT DOES
NOT HAVE
JURISDICTION.CASE
DISMISSED
ARE
CONTACTS
SYSTEMATIC AND
CONTINUOUS?
(DAIMLER)
COURT HAS
JURISDICTION --
CASE PROCEEDS
IF DEFENDANT IS INSIDE THE FORUM, PERSONAL JURISDICTION IS AUTOMATIC; SUBJECT MATTER JURISDICTION IS STILL NEEDED
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25. “Fair Play and Substantial Justice” Considerations
Foreseeability: Would the party expect to be sued there?
Did the party “purposefully avail himself” of the privilege of conducting activities in the forum?
Transacting business with the forum
Visiting the forum in connection with the transaction
Acts causing injury in the forum
Contacts “numerous, purposeful, and continuous”
Not “random, isolated, or fortuitous”
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26. Snowney v. Harrah’s Entertainment, Inc. 35 Cal. 4th 1054, 112 P
Snowney v. Harrah’s Entertainment, Inc. 35 Cal. 4th 1054, 112 P.2d 28 (2005)
Frank Snowney, a California resident, reserved a hotel room at Harrah’s in Las Vegas, Nevada from his home in California
He was told the room would cost $50 per night
When he checked out, a $3 per night “energy surcharge” had been added. He was not previously told of the surcharge
Snowney sued Harrah’s in California for deceptive business practices for himself and on behalf of “persons who were charged an energy surcharge as an overnight hotel guest in one of the defendant's hotels, yet were never given notice that there was an energy surcharge and/or what such charge would be.” – a class action

27. Snowney v. Harrah’s Entertainment, Inc.
Harrah’s claimed the court had no personal jurisdiction
Harrah’s maintained a website that could be used to reserve rooms. Snowney did not use it.
The trial court dismissed the case
The appeals court reversed
The California Supreme Court found that Harrah’s targeted California residents on its website and thus “purposefully availed” itself of doing business in California
U.S. Supreme Court declined review
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28. LAW OF COMPUTER TECHNOLOGY FALL 2018 © 2018 MICHAEL I. SHAMOS
Response Reward Systems v. Meijer Inc F.Supp. 2d 1332 (M.D. Fla. 2002)
Response Reward, a Florida company, owns patents on issuing electronic coupons
Meijer, Inc. is a Michigan corporation that operates supermarkets
Meijer operated a website that offered electronic coupons
Response Reward alleged that Meijer was infringing its patents
Response Reward could have sued in Michigan, where Meijer was located. Instead, it sued in Florida (more convenient, maybe friendlier)
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29. Response Reward Systems v. Meijer Inc.
The Florida long-arm statute permits jurisdiction over a defendant who is “engaged in substantial and not isolated activity” within Florida
Meijer’s website was accessible from anywhere, but Meijer
was not licensed in Florida
had no offices, stores, employees or property in Florida
did not advertise in Florida
issued coupons which could not be used in Florida
BUT, some stores owned by others accepted the coupons in Florida
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30. Response Reward Systems v. Meijer Inc.
The Florida long-arm statute, as interpreted by the Florida courts, permits jurisdiction over a defendant who commits an act outside Florida that causes damage within Florida, e.g. patent infringement
Is it constitutional for Florida to exercise jurisdiction over Meijer?
No. Meijer did not have minimum contacts with Florida.
Think about it. Should there be jurisdiction just because the patent owner happens to be in Florida?
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31. LAW OF COMPUTER TECHNOLOGY FALL 2018 © 2018 MICHAEL I. SHAMOS
In Rem Jurisdiction
Jurisdiction over things. “In rem” = “against a thing” From Latin, in (“against”) + rem = accusative of res, meaning “thing”
A state has power over physical items located inside its borders
The items themselves can be sued in a proceeding to determine rights
Often used in law of the sea (reward for salvaged property), seizure cases (ownership of seized goods) computer law (rights to domain names)
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32. Anticybersquatting Consumer Protection Act
“The owner of a [trade]mark may file an in rem civil action against a domain name in the judicial district in which the domain name registrar, domain name registry, or other domain name authority that registered or assigned the domain name is located if … the domain name violates any right of the owner of a mark registered in the Patent and Trademark Office …” U.S.C. §1125(d)(2)
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34. Factors Affecting Jurisdiction
When more than one state has jurisdiction, we look at:
(1) burden on the defendant
(2) forum state's interest in resolving the dispute
(3) the plaintiff's interest in receiving convenient and effective relief
(4)  interstate judicial system's interest in obtaining the most efficient resolution of controversies, and
(5) shared interest of the several states in furthering fundamental substantive social policies.
Burger King Corp. v. Rudzewicz, 471 U.S. 462, 472 (1985)
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35. Major Ideas
A court must have both subject matter and personal jurisdiction to hear a case
Subject matter jurisdiction cannot be waived
“Things” can be sued in rem
Personal jurisdiction is limited by the U.S. Constitution. It requires “minimum contacts” with the state seeking to exercise jurisdiction
“General jurisdiction” means the Court can hear any type of case against the defendant (if it has subject matter jurisdiction)
“Special jurisdiction” means the Court can hear the case because it arose out of contacts with forum
General jurisdiction is harder to show than special jurisdiction

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