Also known as: streams · watercourse
Written by attorneys · grounded in primary & secondary sources — see below
The channel through which a manufacturer or distributor moves products from production to ultimate consumers across state or national lines.
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Summit Bank loaned funds to a Taiwanese valve maker that sold components to a Japanese tire company. The tire company assembled vehicles sold nationwide including in the forum state. After an accident the bank sued the Taiwanese firm for indemnity. The court declined jurisdiction because the firm had done no more than place valves into the stream of commerce with awareness they might reach the forum.
Sierra Solutions manufactured machines in Britain and sold them to a U.S. distributor that resold them across the country. A forum-state buyer was injured and sued in that state. Jurisdiction failed because Sierra had targeted the United States market generally rather than the forum state specifically when it placed the machines into the stream of commerce.
A foreign component maker placed parts into the stream of commerce knowing they could reach multiple states. A buyer in the forum state was injured by the assembled product and sued. The court held that mere awareness of possible forum reach was insufficient for jurisdiction.
A foreign manufacturer sold goods to a national distributor that resold them nationwide. An injured forum buyer sued. Jurisdiction failed because the manufacturer had not targeted the forum state specifically when placing items into the stream of commerce.
A Taiwanese firm placed valves into the stream of commerce with knowledge they might enter the forum. After a product-related accident the firm was sued locally. The court found no jurisdiction absent purposeful targeting of the forum.
A British maker sold machines into the national market via a U.S. distributor. A forum-state user sued after injury. Jurisdiction was denied because the maker had not directed activities specifically at the forum when placing goods into the stream of commerce.
No. The Supreme Court has held that awareness that a product may reach the forum state is not alone a sufficient basis for jurisdiction.
Supporting sources
The defendant must have targeted the forum state specifically rather than the national market as a whole.
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Even if minimum contacts exist, jurisdiction may still be unreasonable when the burden on a foreign defendant is severe and the forum's interest is slight.
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…property for its own use, the Court held that full compensation had to be awarded. “Suppose, in the improvement of a navigable stream, it was deemed essential to construct a canal with locks, in order to pass around rapids or falls. Of the power of Congress to condemn whatever land may be necessary for such canal, there…