Legal Definitions - in personam

In personam is a Latin legal term meaning "against the person." In law, it refers to a court's authority, known as in personam jurisdiction, to make decisions that directly affect a specific individual or entity, such as a company. This means the court has the power to compel that person or entity to act, or to pay damages, and its judgment will be personally binding on them.

A court can typically exercise in personam jurisdiction over someone if they reside in the court's geographic area, have significant connections to it (like regularly conducting business there), or have agreed to be subject to that court's authority. Judgments based on in personam jurisdiction are powerful because they can be enforced against the individual or entity's assets, even in other states, due to constitutional principles like the Full Faith and Credit Clause.

Here are some examples illustrating how in personam jurisdiction applies:

• Example 1: Jurisdiction Based on Residence

  Imagine Sarah, who lives in California, wants to sue her former business partner, David, for breach of contract. David has always lived in Arizona and has no significant connections to California. Sarah would typically need to file her lawsuit in an Arizona state court because that court has in personam jurisdiction over David due to his residence there. The Arizona court can then issue a judgment that directly orders David to pay damages or fulfill his contractual obligations, and that judgment will be personally binding on him.

• Example 2: Jurisdiction Based on Business Contacts

  Consider "GadgetCo," a small online retailer based in Oregon, that sells a unique electronic device through its website. A customer in New York purchases the device, which later malfunctions and causes property damage. The New York customer wants to sue GadgetCo for damages. Even though GadgetCo is in Oregon, a New York court might have in personam jurisdiction over GadgetCo if the company purposefully directed its sales activities towards New York residents (e.g., by advertising there, having a significant number of sales to New York customers). If jurisdiction is established, the New York court can issue a judgment that directly holds GadgetCo responsible for the damages, and that judgment would be enforceable against the company's assets.

• Example 3: Jurisdiction Based on Consent

  Two companies, one based in Texas and the other in Florida, enter into a complex software development agreement. A clause in their contract states that any disputes arising from the agreement must be resolved in the courts of Georgia. By including this "forum selection clause" in their contract, both the Texas and Florida companies have consented to the in personam jurisdiction of Georgia courts for any disputes related to that agreement. Even if neither company has physical operations or residence in Georgia, a Georgia court would have the authority to hear their case and issue a judgment that is personally binding on both parties.