Also known as:stream of commerce doctrine · stream-of-commerce · stream of commerce · stream of commerce theory
Written by attorneys · grounded in primary & secondary sources — see below
in personal jurisdiction
A theory under which a defendant subjects itself to specific personal jurisdiction in a forum state by placing a product into the stream of commerce with the expectation that it will be purchased by consumers there. The theory requires purposeful targeting of the forum rather than mere awareness that goods may reach it. Additional conduct directed at the forum state is necessary to satisfy due process.
How it applies
Common Examples
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Indemnity Claim Against Foreign Supplier
MedTech GmbH manufactures screws in Germany and sells them only to a Canadian assembler. The assembler incorporates the screws into kits sold nationwide, and one kit reaches a hospital in State X where it fails during surgery. The hospital sues the assembler, which then seeks indemnity from MedTech in State X court. MedTech moves to dismiss, arguing that its only link to State X is the downstream movement of its product through an independent supply chain.
Foreign Manufacturer Targeting National Market
A Swedish seatbelt maker sells assemblies exclusively to a French aircraft company. The French company leases planes that land in Western State, and a passenger is injured when a belt fails. The airline brings an indemnity action against the Swedish maker in Western State court. The maker has no offices, employees, or advertising in the United States and moves to dismiss for lack of personal jurisdiction.
Select any source to read its text and confirm it supports the definition.
Cases
Casebooks
Tire Distributor With No Forum Targeting
A foreign tire manufacturer sells tires to a national distributor that resells them across the United States. Two tires reach State A and cause an accident injuring residents there. The injured parties sue the manufacturer in State A. The manufacturer maintains no advertising, sales force, or distribution agreements directed specifically at State A.
Car Retailer With Regional Distribution
A regional car retailer sells vehicles only in three states and has no dealerships or advertising in State B. A buyer purchases a car in one of those states, drives it to State B, and is injured when the car malfunctions. The buyer sues the retailer in State B. The retailer moves to dismiss, pointing out that it never directed sales or marketing efforts toward State B.
Parent Company With Subsidiary Sales
A German parent company manufactures vehicles through a U.S. subsidiary that sells cars nationwide. A car sold in State C causes an accident in State D. Plaintiffs sue the parent in State D. The parent has no direct operations, employees, or marketing in State D and moves to dismiss.
Component Maker With No Forum Contacts
A component supplier manufactures parts sold only to an assembler outside the United States. The assembler incorporates the parts into finished goods distributed nationwide, and one good reaches State E where it causes injury. The injured party sues the supplier in State E. The supplier has never advertised, sold, or directed any activity toward State E.
Common questions
Frequently Asked
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Does merely placing a product into the stream of commerce establish personal jurisdiction?+
No. The Supreme Court has held that awareness that a product may reach the forum state is not by itself a clearly sufficient basis for personal jurisdiction. Additional conduct purposefully directed at the forum is required.
Supporting sources
Must a foreign manufacturer target the specific forum state rather than the national market?+
Yes. Jurisdiction requires purposeful targeting of the forum state itself. Placing goods into a national distribution system without evidence of intent to serve the particular state is insufficient.
Supporting sources
How does the stream-of-commerce doctrine interact with the fairness prong of due process?+
Even if minimum contacts are debatable, jurisdiction may still be unreasonable when the defendant is a foreign corporation, the claim is an indemnity action between foreign parties, and the forum has only a slight interest in the dispute.
Supporting sources
Can a manufacturer be subject to jurisdiction when the specific product reached the forum through a used sale outside the state?+
It depends on the strength of the manufacturer's other forum contacts. Extensive advertising, certified installers, and a local service center can create a sufficient relationship even if the particular unit arrived through an independent channel.
Supporting sources
444 U.S. 286 (1980)Civil Procedure
…powers under the Due Process Clause if it asserts personal jurisdiction over a corporation that delivers its products into the stream of commerce with the expectation that they will be purchased by consumers in the forum State. Cf. Gray v. American Radiator & Standard Sanitary Corp. , 22 Ill. 2d 432, 176 N. E. 2d 761 (1961). But…