1. Explain Schwarzenegger’s complaint.
2. Why was Schwarzenegger unable to sue Fred Martin in California?
3. Nicastro injured his hand while using a metal-shearing ma-chine in New Jersey manufactured by J. McIntyre Machinery, a company incorporated and operating in England. Nicastro filed a products liability lawsuit against J. McIntyre Machinery in a New Jersey state court, basing personal jurisdiction in New Jersey on three primary facts: A U. S. distributor agreed to sell the company’s machines in the United States; J. McIntyre officials attended trade shows in several other states; and four of the company’s machines were located in New Jersey. J. McIntyre Machinery had not advertised in or sent goods to New Jersey.
a. Build an argument to support the claim of jurisdiction in the New Jersey court.
b. Decide.
4. Burger King conducted a franchise, fast-food operation from its Miami, Florida, headquarters. John Rudzewicz and a partner, both residents of Michigan, secured a Burger King franchise in Michigan. Subsequently, the franchisees allegedly fell behind in payments, and after negotiations failed, Burger King ordered the franchisees to vacate the premises. They declined to do so, and continued to operate the franchise. Burger King brought suit in a federal district court in Florida. The defendant franchisees argued that the Florida court did not have personal jurisdiction over them because they were Michigan residents and because the claim did not arise in Florida. However, the district court found the defendants to be subject to the Florida long-arm statute, which extends jurisdiction to “any person, whether or not a citizen or resident of this state” who, “breaches a contract in this state by failing to perform acts required by the contract to be performed in this state.” The franchise contract pro-vided for governance of the relationship by Florida law. Policy was set in Miami, although day-to-day supervision was managed through various district offices. The case ultimately reached the U.S. Supreme Court.
a. What constitutional argument would you raise on behalf of the defendant franchisees?
b. Decide.