Legal Definitions - Pennoyer rule

The Pennoyer rule is a foundational principle in U.S. law that dictates a court cannot issue a judgment directly affecting a person's rights or obligations (known as a "personal judgment") unless that court has proper legal authority over the person themselves. This authority is referred to as "personal jurisdiction." Essentially, the rule ensures fairness by preventing individuals or businesses from being forced to defend themselves in courts located in states or jurisdictions where they have no meaningful connection.

Here are some examples illustrating the Pennoyer rule:

• Example 1: Interstate Individual Lawsuit

  Imagine David, a resident of Oregon, is driving through Nevada on a vacation. While briefly stopped at a roadside diner, he has a minor verbal disagreement with a local resident, Emily. No physical harm or significant property damage occurs. Months later, Emily decides to sue David for emotional distress in a Nevada state court. David has no other ties to Nevada—no property, no business, and he hasn't returned since his brief visit.

  Under the Pennoyer rule, the Nevada court would likely lack personal jurisdiction over David. His fleeting presence in the state for a vacation stop is generally not considered a sufficient "minimum contact" to establish the court's authority over him personally. Therefore, even if Emily pursued the lawsuit, the Nevada court could not issue a personal judgment against David that would be enforceable against his assets or require him to pay money back in Oregon, as it lacks the power over him as an individual.

• Example 2: Online Business Dispute

  "Artisan Goods Co." is a small online business operating solely from its owner's home in Maine. It sells unique handcrafted items through its website and has no physical stores, employees, or advertising outside of Maine. A customer named Carlos, residing in California, purchases an item from Artisan Goods Co.'s website. Carlos later claims the item was defective and sues Artisan Goods Co. in a California state court for a refund and additional damages.

  Applying the Pennoyer rule, the California court would likely find it lacks personal jurisdiction over Artisan Goods Co. Simply having a website accessible in California and making a single sale to a California resident is often not enough to establish the "minimum contacts" required for a California court to assert authority over the Maine-based business. Consequently, the California court could not issue a personal judgment against Artisan Goods Co. that would compel it to pay damages or take specific actions, because it does not have jurisdiction over the business entity itself.