Personal JurisdictionMcGee v. International Life Insurance Co.355 U.S. 220 (1957)

Procedure: The Texas Courts refused to enforce the judgment claiming that Californias exercise of jurisdiction was improper. Plaintiff (petitioner) appealed the Texas decision to the U.S. Supreme Court.

Facts: Petitioner was a resident of California, purchased a life insurance policy from (an insurer subsequently bought by respondent, which) mailed petitioner a reinsurance certificate to his residence in California, offering to insure him. Petitioner accepted the offer and from that time until his death, he paid premiums by mail from his home in California to respondents office in Texas. Petitioner committed suicide and when respondent was notified of the manner of petitioners death, respondent refused to pay claiming that suicide was excluded by the policy. Neither the original insurer nor responded has ever had any office or agent in California.

Issue: Can jurisdiction be established by a corporations isolated activity within the forum state were the case arises out of resulting from that activity?

Law: States can exercise jurisdiction over a defendant whos the contacts with that state consist of only a single act, provided that that act is what gave rise to the claim for which jurisdiction is being sought, and was deliberately directed toward the state.

Reasoning: The contract was delivered in California, the premiums were mailed from there and the petitioner was a resident of that state until he died. The state of California as an invested interest in providing effective means of redress for its residents when their insurers residents when their insurers refuse to pay claims. If the residents were forced to follow the insurance company to a distant state in order to hold it legally accountable they would be at a severe disadvantage.

Holding: Reversed. Jurisdiction in California.