Young v. Ford Motor Company
Young v. Ford Motor Company
Opinion
¶ 1 In October and December 2012, plaintiffs, Rivonshica Young; Johnny Young; Kivonshica Shaw, administrator of the Estate of Birdie Marie Shaw, deceased; Johnesha Young; a minor, by and through her father and next friend, Johnny Young; Martavius Young, a minor, by and through his father and next friend, Johnny Young; Shantequa Marzette; and Steffond Marzette filed second amended complaints against various defendants, including Ultimate Product Corporation (UPC), as well as Jinfei Holding Group Company, Ltd., and Zhejiang Jinfei Kaida Wheel Company, Ltd. (the Jinfei defendants). In January 2015, the Jinfei defendants filed a motion to dismiss plaintiffs' second amended complaints for lack of jurisdiction. In September 2016, the trial court granted the motion to dismiss. The court denied UPC's motion to reconsider in January 2017. 1
¶ 2 In these consolidated appeals, plaintiffs and UPC argue the trial court erred in dismissing all claims against the Jinfei defendants for lack of personal jurisdiction. We affirm.
¶ 3 I. BACKGROUND
¶ 4 In February 2009, Rivonshica Young purchased a 2000 Lincoln Navigator from Carmax, Inc., in Schaumburg, Illinois. In March 2010, Young purchased a set of four Dakar Imperial custom wheels at Carlos *650 Auto Repair in Rockford, Illinois, where the wheels were installed on the Navigator.
¶ 5 On April 18, 2010, Birdie Marie Shaw was the front passenger of the Navigator driven by Rivonshica Young. Shantequa and Steffond Marzette and Johnny and Martavius Young were rear passengers in the vehicle. While traveling through McLean County, the right rear wheel came off the vehicle, which rolled over and injured passengers. Shaw died in the accident.
¶ 6 In October 2012, plaintiffs Rivonshica Young and Johnny Young filed a second amended complaint in Cook County circuit court against various parties, including the Jinfei defendants, seeking recovery for personal injuries allegedly sustained in the accident. The complaint alleged, inter alia , Meridian Management Corporation, together with the Jinfei defendants, UPC, Direct Line of North Florida, Inc. (Direct Line of North Florida), and Direct Line of Illinois, Inc. (Direct Line of Illinois), designed, manufactured, inspected, assembled, marketed, and distributed Dakar custom wheels, and the wheels sold to plaintiffs were in a defective condition because they failed to come with bolts sufficient to properly fasten to the Navigator.
¶ 7 In December 2012, plaintiffs Kivonshica Shaw, administrator of the estate of Birdie Marie Shaw, deceased; Johnesha Young, by and through her father, Johnny Young; Martavius Young, by and through his father and next friend Johnny Young; Shantequa Marzette; and Steffond Marzette, filed a second amended complaint, making similar claims against various parties, including the Jinfei defendants. The consolidated cases were transferred to McLean County circuit court based on the doctrine of forum non conveniens in June 2014.
¶ 8 In January 2015, the Jinfei defendants filed a motion to dismiss plaintiffs' second amended complaints for lack of jurisdiction pursuant to sections 2-301 and 2-619 of the Code of Civil Procedure (Procedure Code) ( 735 ILCS 5/2-301, 2-619 (West 2014)). The motion stated Jinfei Holding Group Company, Ltd., is the parent company of Zhejiang Jinfei Kaida Wheel Company, Ltd., and both are registered, incorporated, and located in the People's Republic of China.
¶ 9 The Jinfei defendants argued they were not subject to general or specific personal jurisdiction and traditional notions of fair play and substantial justice favored their dismissal from the actions. In regard to specific personal jurisdiction, the Jinfei defendants argued they did "not have the sufficient minimum contacts with Illinois that would serve as 'fair warning' to confer specific personal jurisdiction upon them." They claimed they were not registered in Illinois, maintained no offices or employees in Illinois, and had no bank accounts or other assets in Illinois. Moreover, they stated they made no direct product sales with customers based in Illinois and engaged in no business dealings with individuals or companies in Illinois during the previous five years.
¶ 10 UPC has its principal place of business in California. Direct Line of Illinois and Direct Line of North Florida (collectively, Direct Line) are dissolved Florida corporations. Articles of incorporation for Direct Line of Illinois indicate it was incorporated in the state of Florida in 2007.
¶ 11 The Jinfei defendants and UPC relied on affidavits and depositions of various individuals in this case. In his affidavit, Elias Carlos stated Carlos Auto Repair purchased four Dakar Imperial wheels from Direct Line of Illinois and Direct Line of North Florida, which were sold to *651 Rivonshica Young and installed on the Navigator.
¶ 12 Donis Horne, Jr., testified he was general manager of Direct Line. At some point, Direct Line had a warehouse near Chicago, Illinois. When asked about receiving factory tests of wheels, Horne stated Direct Line "never talked directly" with the Jinfei defendants. Instead, the Jinfei defendants would provide test results to UPC, which would then provide the information to Direct Line. Horne stated the Jinfei defendants supplied the wheels to UPC, and Direct Line bought the wheels from UPC. Along with UPC, Horne stated the Dakar wheels were manufactured through a company called Tectran.
¶ 13 George Hsu testified he is the chief financial officer of UPC. He stated UPC and Direct Line entered into a manufacturing agreement for UPC to locate an overseas manufacturer for Direct Line's wheels. UPC acted as the facilitator between Direct Line and the Jinfei defendants regarding the design and production of the Dakar wheels. Direct Line would pass a 3-D rendering design to UPC, and UPC would pass it on to the Jinfei defendants. The Jinfei defendants would then send back a 2-D technical drawing, and UPC would pass that along to Direct Line. Once Direct Line approved the product design, it would place its order with UPC, which passed it along to the Jinfei defendants for production. The wheels would be shipped to the location determined by Direct Line, which included ports in Chicago, Illinois; Savannah, Georgia; and Jacksonville, Florida. Hsu stated when UPC orders products F.O.B., i.e. , free on board, the Jinfei defendants do not pay for the shipment from the Port of China to the United States. Hsu stated UPC would typically instruct the Jinfei defendants the orders "would need to go to whatever port of destination of [the] customer's choosing." UPC directs what shipper is to transport the products and where the container is to be shipped to the United States. Hsu testified an invoice from the Jinfei defendants indicated 260 cartons of wheels were shipped from Ningbo, China, to the Port of Los Angeles, California, with the place of delivery being Chicago, Illinois.
¶ 14 Vincent Huang, vice president of UPC, testified UPC imports and distributes automotive accessories and wheels. He stated the Jinfei defendants shipped the products to the ports arranged by UPC. He stated the Jinfei defendants were responsible for getting the products to the port in China, where ownership and risk of loss would transfer to UPC. The Jinfei defendants had no say as to where the containers were shipped from the port in China to the United States, as that decision was made by UPC or their customers. The Jinfei defendants would know the destination of the port. Huang stated the designation of Chicago in the invoices was a decision made by Direct Line. Huang stated he met with the Jinfei defendants in Nevada, California, and Indiana.
¶ 15 Fang Meijuan, a representative of the Jinfei defendants, testified the company ships the wheels to port and "[t]he actual export is done by the people arranged by the customer." She stated an invoice created by the Jinfei defendants reflected a shipment of wheels from China to Chicago in December 2008.
¶ 16 Zhang Tao, another representative of the Jinfei defendants, testified to an exhibit indicating four wheels were sold to UPC and shipped from China to Chicago in December 2008. He remembered the sale of another shipment of wheels that traveled to the Port of Chicago on its way to Elkhart, Indiana. Tao stated he twice passed through Chicago on his way to Indiana.
*652 ¶ 17 Xia Qing, the business manager for Jinfei Holding Group Company, Ltd., stated in his 2014 affidavit the Jinfei defendants do not have property, offices, or employees in Illinois and they are not registered to do business in Illinois. He also stated no employees of the Jinfei defendants traveled to Illinois for any business purposes in the past five years.
¶ 18 In his 2015 discovery deposition, Qing stated he was a marketing manager for Zhejiang Jinfei Kaida Wheel Company. He testified he conducts market research and develops customers. He stated employees of the Jinfei defendants have traveled through Chicago on their way to Indiana and Ohio.
¶ 19 In September 2016, the trial court found it had no jurisdiction over the Jinfei defendants under the Illinois long-arm statute ( 735 ILCS 5/2-209 (West 2016) ), as they were not doing business in Illinois, had not committed a tortious act within Illinois, and had entered into no contracts with anyone in Illinois. The court found jurisdiction over the Jinfei defendants would also violate due process, stating as follows:
"[The Jinfei defendants] are registered and incorporated in China. Jinfei defendants are located in China. They are not registered to do business in Illinois. They have no registered agent in the state of Illinois. They have not owned, rented or leased any property in Illinois. They have not operated any Illinois plant or employed anyone within the state of Illinois. They have paid no taxes in the state of Illinois, have no assets within the state, [and] do not manufacture any products within the state. They have no Illinois customers, nor do they have any ongoing relationships with any Illinois businesses, and they do not travel to Illinois for business purposes. Admittedly, some of their employees had a layover in Chicago while traveling to other locations; however, they were not availing themselves of Illinois for those business travels.
While they work with independent distributors, they have no control or specific knowledge of where the products['] ultimate destinations will be. Their transactions are complete when the product is delivered to a port in China. The purchaser is to then determine the destination from that point.
The Court finds also that it lacks specific jurisdiction over the Jinfei defendants in that they haven't directed any activities at Illinois, and the cause of action does not relate to any of their contacts within Illinois because the Court finds there are really none that exist.
At best, the Court finds the Jinfei defendants were aware that their products could arrive at the port of Chicago. The Court finds that it's insufficient to confer jurisdiction; and, therefore, it is not reasonable to confer jurisdiction. And the motion to dismiss is allowed."
¶ 20 In October 2016, UPC filed a motion to reconsider, which was joined by plaintiffs. In January 2017, the trial court denied the motion, stating the Jinfei defendants "did nothing to avail themselves of the [forum] of Illinois." Further, the court noted "[t]he wheels manufactured in China were shipped FOB to Ningbo, China, and the transaction ended at that point. It was there in China that UPC, and not Jinfei, directed those wheels to the port of Chicago."
¶ 21 Prior to beginning our analysis, we note the record in this case consists of over 9000 pages and 40 volumes. The parties have also filed lengthy briefs setting forth their arguments. In those briefs, the parties have stated facts with reference to the pages of the record. We would encourage *653 the parties, especially in cases involving such a voluminous record, to also include the corresponding volume numbers where those pages can be found, thereby assisting the court to access the cited materials more expeditiously.
¶ 22 II. ANALYSIS
¶ 23 Plaintiffs argue the trial court erred in dismissing all claims against the Jinfei defendants for lack of personal jurisdiction, claiming the Jinfei defendants had the requisite minimum contacts pursuant to the Illinois long-arm statute. We disagree.
¶ 24 "It is settled that the plaintiff has the burden to establish a
prima facie
basis to exercise personal jurisdiction over a nonresident [defendant]."
Russell v. SNFA
,
¶ 25 The Illinois long-arm statute found in section 2-209 of the Procedure Code ( 735 ILCS 5/2-209 (West 2016) ) "governs the exercise of personal jurisdiction by an Illinois court over a nonresident defendant."
Russell
,
"[a]ny person, whether or not a citizen or resident of this State, who in person or through an agent does any of the acts hereinafter enumerated, thereby submits such person * * * to the jurisdiction of the courts of this state as to any cause of action arising from the doing of any such acts[.]" 735 ILCS 5/2-209 (West 2016).
Subsection (a) of section 2-209, which governs specific jurisdiction, lists 14 different actions by a defendant that will subject him or her to Illinois jurisdiction. 735 ILCS 5/2-209(a)(1) to (14) (West 2016). Subsection (b) contains provisions pertaining to general jurisdiction. 735 ILCS 5/3-209(b) (West 2016).
¶ 26 Subsection (c) is a "catchall provision" that permits Illinois courts to " 'exercise jurisdiction on any other basis now or hereafter permitted by the Illinois Constitution and the Constitution of the United States.' "
Russell
,
"Because of the coextensive nature of the long-arm statute and due process requirements, the first step traditionally employed by Illinois courts in personal jurisdiction analysis, that is, whether the defendant performed any of the acts enumerated in the long-arm statute, is now 'wholly unnecessary.' [Citation.] In other words, the long-arm statute is satisfied when due process concerns are satisfied, regardless of whether the defendant performed any of the acts enumerated in the long-arm statute. [Citation.]" Keller v. Henderson ,359 Ill. App. 3d 605 , 612,834 N.E.2d 930 , 935,296 Ill.Dec. 125 (2005).
¶ 27 Our supreme court agreed with this analysis, finding courts should not "consider our long-arm statute separately from federal due process concerns."
Russell
,
¶ 28 "In all cases involving a nonresident defendant, before a court may subject the defendant to a judgment
in personam
, 'due process requires that the defendant have certain minimum contacts with the forum State such that maintenance of the suit there does not offend "traditional notions of fair play and substantial justice." ' "
Russell
,
"Specific jurisdiction requires a showing that the defendant purposefully directed its activities at the forum state and the cause of action arose out of or relates to the defendant's contacts with the forum state. [Citation.] Under specific jurisdiction, a nonresident defendant may be subjected to a forum state's jurisdiction based on certain ' "single or occasional acts" ' in the state but only with respect to matters related to those acts. [Citation.]
In Burger King Corp. [ v. Rudzewicz ,471 U.S. 462 , 473-74,105 S.Ct. 2174 ,85 L.Ed.2d 528 (1985) ], the United States Supreme Court explained the rationale for permitting the exercise of specific personal jurisdiction over a nonresident defendant who 'purposefully directs' its activities toward the forum, even if only for single or occasional acts in the forum state. First, the state has a manifest interest in providing its residents with a convenient forum for redressing injuries caused by nonresidents. Second, when a nonresident defendant purposefully derives benefit from its interstate activities in other jurisdictions it would be unfair to allow that defendant to avoid any legal consequences that proximately arose from those same activities. [Citation.]" Russell ,2013 IL 113909 , ¶¶ 40-41,370 Ill.Dec. 12 ,987 N.E.2d 778 .
¶ 29 In the case
sub judice
, plaintiffs do not argue Illinois may exercise general jurisdiction over the Jinfei defendants. Thus, we will focus our attention on specific jurisdiction, which requires (1) the corporate, nonresident defendant must have minimum contacts with Illinois in that (a) it purposefully directed its activities at this state and (b) plaintiffs' claims arose from or related to those contacts with Illinois (see
Burger King Corp.
,
*655
¶ 30 In
World-Wide Volkswagen
,
"[I]f the sale of a product of a manufacturer or a distributor * * * is not simply an isolated occurrence, but arises from the efforts of the manufacturer or distributor to serve, directly or indirectly, the market for its product in other States, it is not unreasonable to subject it to suit in one of those States if its allegedly defective merchandise has there been the source of injury to its owner or to others."
Thus, a forum state is allowed to exercise personal jurisdiction over a nonresident defendant that "delivers its products into the stream of commerce with the expectation that they will be purchased by consumers in the forum State."
World-Wide Volkswagen
,
¶ 31 The Supreme Court again addressed the stream-of-commerce theory in
Asahi Metal Industry Co. v. Superior Court
,
¶ 32 Under a narrow theory espoused by Justice O'Connor, along with Chief Justice Rehnquist and Justices Powell and Scalia, "[t]he placement of a product into the stream of commerce, without more, is not an act of the defendant purposefully directed toward the forum State."
Asahi
,
¶ 33 Under a broad theory espoused by Justice Brennan, along with Justices White, Marshall, and Blackmun, the "additional conduct" need not be shown. Instead, the forum state can assert personal jurisdiction over a nonresident defendant if the defendant engages in "the regular and anticipated flow of products from manufacture to distribution to retail sale" and is "aware that the final product is being marketed in the forum State."
Asahi
,
¶ 34 Thereafter, our supreme court in
Wiles v. Morita Iron Works Co.
,
¶ 35 In
Wiles
,
¶ 36 The United States Supreme Court revisited the stream-of-commerce theory in
J. McIntyre Machinery, Ltd. v. Nicastro
,
¶ 37 While not agreeing on the application of the stream-of-commerce theory, six justices found New Jersey could not exercise specific personal jurisdiction over the British defendant.
J. McIntyre
, 564 U.S. at 887, 893,
*657
¶ 38 In a concurring opinion, Justice Breyer, joined by Justice Alito, agreed with the plurality that the New Jersey court could not exercise personal jurisdiction but disagreed with the plurality's "strict rules" to limit jurisdiction.
J. McIntyre
, 564 U.S. at 888-90,
¶ 39 In dissent, Justice Ginsburg, joined by Justices Sotomayor and Kagan, argued the defendant could not escape the jurisdictional reach of New Jersey courts. Because the defendant engaged an American-based distributor, Justice Ginsburg would have found it "purposefully availed itself" of the entire United States market.
J. McIntyre
, 564 U.S. at 905,
¶ 40 Following the decision in
J. McIntyre
, our supreme court revisited the stream-of-commerce theory and took away three points from that case. First, the court found the Supreme Court "unanimously endorsed the continued validity of the stream-of-commerce theory from
World-Wide Volkswagen
to establish specific personal jurisdiction, although the proper application of that theory is not settled."
Russell
,
¶ 41 After analyzing the stream-of-commerce authority, the supreme court considered the facts in
Russell
. There, the defendant, a French corporation with no offices, assets, property, or employees in Illinois, manufactured tail-rotor bearings for the aerospace industry, including a helicopter that crashed in Illinois.
Russell
,
¶ 42 The supreme court found the defendant engaged in Illinois-specific activity to establish the requisite minimum contacts.
Russell
,
*658
Russell
,
"[W]e find that defendant has the requisite minimum contacts with Illinois for purposes of specific personal jurisdiction. Defendant is a French manufacturer of custom-made bearings for the aerospace industry. Defendant knowingly used a distributor, Agusta and AAC, to distribute and market its products throughout the world, including the United States and Illinois. Defendant's distributor has made multiple sales of its products in Illinois. In addition, defendant has a business relationship with a division of Hamilton Sundstrand in Rockford, Illinois, for defendant's custom-made bearings used in airplanes." Russell ,2013 IL 113909 , ¶ 85,370 Ill.Dec. 12 ,987 N.E.2d 778 .
¶ 43 Considering the law and facts of the case before us, we find plaintiffs have not met their burden to show the Jinfei defendants had the requisite minimum contacts with Illinois for the courts of this state to exercise personal jurisdiction over them. The evidence indicates the Jinfei defendants are Chinese companies that are not registered to do business in Illinois. Moreover, they have no offices, property, assets, or employees in Illinois. The United States Supreme Court has stated "it is the defendant's conduct that must form the necessary connection with the forum State that is the basis for its jurisdiction over him."
Walden v. Fiore
, 571 U.S. ----, ----,
¶ 44 Plaintiffs rely in large part on our supreme court's decision in
Russell
. However, we find
Russell
distinguishable. Here, the Jinfei defendants have not engaged a business entity in Illinois and thereby directly benefitted from this state's "system of laws, infrastructure, and business climate."
Russell
,
¶ 45 III. CONCLUSION
¶ 46 For the reasons stated, we affirm the trial court's judgment.
¶ 47 Affirmed.
Justices Holder White and Appleton concurred in the judgment and opinion.
These consolidated appeals seek review of the trial court's orders of September 2016 and January 2017. Defendant-appellant UPC appeals in case No. 4-17-0177. Plaintiffs-appellants Rivonshica Young and Johnny Young appeal in case No. 4-17-0178. Plaintiffs-appellants Rivonshica Young; Johnny Young; Kivonshica Young, administrator of the estate of Birdie Marie Shaw, deceased; Johnesha Young, a minor, by and through her father, Johnny Young; Martavius Young, a minor, by and through his father, Johnny Young; Shantequa Marzette; and Steffond Marzette appeal in case No. 4-17-0179.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.