Case Citation
Legal Case Name

ASAHI METAL INDUSTRY CO. v. SUPERIOR COURT Case Brief

Supreme Court of United States1987
480 U.S. 102 107 S.Ct. 1026 94 L.Ed.2d 92

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Case Brief Summary & Legal Analysis

General Brief
4 min read

tl;dr: A foreign component manufacturer sold parts to another foreign company. The Supreme Court found it unreasonable for a California court to exercise jurisdiction over the component maker, even if its parts ended up in the state through the stream of commerce.

Legal Significance: The case established a two-part test for personal jurisdiction over foreign defendants, requiring both minimum contacts and an assessment of reasonableness. It also created a split among the Justices on the “stream of commerce” theory, leaving the standard for purposeful availment unsettled.

ASAHI METAL INDUSTRY CO. v. SUPERIOR COURT Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

A motorcycle accident in California led to a product liability suit against Cheng Shin, the Taiwanese manufacturer of the motorcycle’s tire tube. Cheng Shin filed a third-party complaint seeking indemnification from Asahi Metal Industry, a Japanese corporation that manufactured the tube’s valve assembly. Asahi manufactured the valves in Japan and sold them to Cheng Shin in Taiwan. Asahi had no offices, agents, or property in California, nor did it solicit business, advertise, or make direct sales in the state. It did not design the product for the California market or control the distribution system that brought its valves there. However, Asahi was aware that Cheng Shin sold finished tires containing its valves in California, and that a substantial number of its components were sold there annually. The original plaintiff’s claims were settled, leaving only the indemnification action between the two foreign corporations, Cheng Shin and Asahi, in California’s Superior Court.

Court Holding & Legal Precedent

Issue: Does the Due Process Clause permit a state court to exercise personal jurisdiction over a foreign defendant whose only connection to the forum is its awareness that its components, sold abroad, would be incorporated into finished products and reach the forum state through the stream of commerce?

No. A majority of the Court held that exercising personal jurisdiction over Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit

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IRAC Legal Analysis

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Legal Issue

Does the Due Process Clause permit a state court to exercise personal jurisdiction over a foreign defendant whose only connection to the forum is its awareness that its components, sold abroad, would be incorporated into finished products and reach the forum state through the stream of commerce?

Conclusion

This case is significant for bifurcating the personal jurisdiction analysis into distinct Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud ex

Legal Rule

The exercise of personal jurisdiction requires both (1) that the defendant has Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaeca

Legal Analysis

The Court's decision rested on a two-pronged inquiry: minimum contacts and reasonableness. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat null

Flash-to-Full Case Opinions

Flash Summary

  • A foreign defendant’s mere awareness that its product will reach a
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proi

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