no. 121281, aspen american insurance company, etc ... · t2t28l no. 121281 in the supreme court of...

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t2t28l No. 121281 IN THE SUPREME COURT OF ILLINOIS ASPEN AMERICAN INSURANCE CO., as subrogee of Eastern Fish Company, PlaintiffAppellee, VS. INTERSTATE WAREHOUSING, INC., Defendant-Appellant. On Appeal From the Appellate Court of lllinois, First Judicial District, No. 1-15-1876 There Heard on Appeal from the Circuit Court of Cook County, No. 14 L7376. The Honorable John P. Callahan, Jr., Judge Presiding ILLINOIS TRIAL LAWYERS ASSOCIATION AI\D AMERICAN ASSOCIATION FOR JUSTICE'S JOINT AMICUS BRIEF' IN SUPPORT OF PLAINTIX'F-APPELLEE, ASPEN AMERICAN INSURANCE COMPANY ***** Electronic&lly X'iled ***** tzt28l 04/19/2017 Supreue Corut Clerk Leslie J. Rosen - [email protected] Member, Amicus Curiae Committee Illinois Trial Lawyers Association LESLIE J. ROSEN ATTORNEY AT LAW, P.C. 180 N. LaSalle Street Suite 3650 Chicago,IL 60601 3r2994-2435 Jeffrey White - [email protected] American Association for Justice 777 6th St. N.W. Washington, D.C.20001 (202) 96s-3s00 * ** * ** ** * ** * ** * ** * *r! *** ** * *t< * * Jr*t( l2F SUBMITTED - I 799924 I 12 - f,JRr4ìROSENLEGAL NET - 04/l I /201 7 0l;00:31 PM DOCUMENT ACCEPTED ON: 04/l 9/2017 I l;17:53 AM

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Page 1: No. 121281, Aspen American Insurance Company, etc ... · t2t28l No. 121281 IN THE SUPREME COURT OF ILLINOIS ASPEN AMERICAN INSURANCE CO., as subrogee of Eastern Fish Company, PlaintiffAppellee,

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No. 121281

IN THE SUPREME COURT OF ILLINOIS

ASPEN AMERICAN INSURANCE CO., as subrogee of Eastern

Fish Company,PlaintiffAppellee,

VS.

INTERSTATE WAREHOUSING, INC.,Defendant-Appellant.

On Appeal From the Appellate Court of lllinois, First Judicial District, No. 1-15-1876

There Heard on Appeal from the Circuit Court of Cook County, No. 14 L7376.The Honorable John P. Callahan, Jr., Judge Presiding

ILLINOIS TRIAL LAWYERS ASSOCIATION AI\DAMERICAN ASSOCIATION FOR JUSTICE'S

JOINT AMICUS BRIEF' IN SUPPORT OFPLAINTIX'F-APPELLEE, ASPEN

AMERICAN INSURANCE COMPANY

***** Electronic&lly X'iled *****

tzt28l

04/19/2017

Supreue Corut Clerk

Leslie J. Rosen - [email protected], Amicus Curiae CommitteeIllinois Trial Lawyers AssociationLESLIE J. ROSEN ATTORNEY AT LAW, P.C.

180 N. LaSalle StreetSuite 3650Chicago,IL 60601

3r2994-2435

Jeffrey White - [email protected] Association for Justice777 6th St. N.W.Washington, D.C.20001(202) 96s-3s00

* ** * ** ** * ** * ** * ** * *r! *** ** * *t< * * Jr*t(

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POINTS AND AUTHORITIES

Introduction

Daimler AG v. Bauman, 571U.S. _, 134 S.Ct. 746 (2014)

Tyrrell v. BNSF Ry. Co.,383 Mont. 417 (2016), cert grantedJanuary 19,2017,2017 WL 125672 I

Bristol-Myers Squibb Company v. Superíor Court of San Francisco County,1 Cal.5th 783,206 Cal.Rptr.3d 636,377 P.3d874 (2016), cert granted,January 19,2017,2017 WL2l568 . .. ... . 2

State Ex Rel. Norþlk Southern Raílway Co. v. The HonorableColleen Dolan, _ SW3d. _,2017 WL 770977 SC 95514. . .

Waite v. AII Acquisition Corp et a1.,2016WL2346743 2

Argument

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THE LOWER COURTS PROPERLY DECIDED THISCASE WHERE PLAINTIFF MADE A PRIME FACIESHO\ryING OF JURISDICTION AND DEF'ENDANT

DID NOT DEFEAT THAT SHOWING. . . . . . . . 4

Russell v. SNFA,2013lL 113909

Flanders v. Caliþrnia Coastal Crntys., Inc.,356lll.App.3d 1113(5th Dist. 200s)

People v. Davis,65Ill.2d 157 (1976)

Aspen v. Interstate,2016IL App (1st) 151876. .

Elfmanv. Evanston Bus Co.,27I11.2d609 (1963)

Ruggiero v. Attore,5l lll.App.3d 139 (lst Dist. 1977)

Jansma Transport, Inc. v. Torino Baking Co.,27 lILApp.2d347(lst Dist. 1960)

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II

JURISDICTION OVER INTERSTATE IS PROPER ANI)CONSISTENT \ryITH TRADITIONAL NOTIONS OF

FAIR PLAY AND SUBSTANTIAL JUSTICE

Daimler AG v. Bauman,5Tl U.S.-, 134 S.Ct. 746 (2014)

International Shoe Co. v. LVashington, 326 U.S. 310 (1945)

Interstate consented to personal jurisdiction in Illinois byregistering an agent for service of process within the state andcontinuously conducting intrastate business in lllinois.

Ins. Corp. of lreland, Ltd. v. Compagnie des Bauxites de Guinee,4s6 U.S. 694 (1e82)

Railroad Co. v. Harris,79 U.S. 65 (1871)

Ex parte Schollenberger,96 U.S. 369 (1877).

Pennsylvania Fire Ins. Co. v. Gold Issue Mining & Milling Co.,

243U.5.93 (1917)..

Neirbo Co. v. Bethlehem Shipbuilding Corp.,308 U.S. 165 (1939)

Perkins v. Benguet Consol. Mining Co.,342 U.S. 437 (1952). .

Mississippi Pub. Corp. v. Murphree,326 U.S. 438 (1946) .

Restatement (Second) of Conflict of Laws $ 44 (Am. Law Inst. l97l). . .

80srLCSs/13.10....

Hannibal & St. Joseph R.R. Co. v. Crane,102 Il1. 249 (1882)

Werner v. Wal Mart Stores, fnc., 1 16 N.M. 229,86I P.2d270(Ct. App. 1993). . .

7

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A.

7

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I(alrus Mfg Co v New Amsterdam Cas. Co,184 F.Supp. 214 (S.D. Ill. 1960) . l0

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121281

Allstate Ins. Co. v. Klein,262 Ga.599 (Ga. 1992)

Knowlton v. Allied Van Lines, Inc., 900 F .2d 11 96 (8th Cir. 1 990)

International Shoe,326 U.S. 310 (1945)

Burger Kin g Corp. v. Rudzewicz, 47 | U .5. 462 ( I 9 85)

J. Mclntyre Mach., Ltd. v. Nicastro,564 U.S. 873 (2011)

Daimler AG v. Bauman,57l U.S. _, 134 S.Ct.746 (2014)

Goodyear Dunlop Tires Op., S.A. v. Brown,564 U.S. 915 (2011). . . . . .

B. Illinois has general jurisdiction in this case because Interstatehas chosen to make itself "at home" in lllinois.

International Shoe,326 U.S. 310 (1945)

Goodyear Dunlop Tires Op., S.A. v. Brown,564 U.S. 915 (2011)

Perkins v. Benguet Consol. Mining Co.,342 U.S. 437 (1952)

Russell v. SNFA,20t3IL 113909

Morgan, Lewis and Bockius LLP v. City of E. Chicago,401 lll.App.3d947 (lst Dist. 2010)

Rokeby-Johnson v. Derek Bryant Ins. Brokers, Ltd.,230Ill.App.3d 308 (1st Dist. 1992)

Cook Assoc., Inc. v. Lexington United Corp.,87 lIlzd,190 (1981)

l1

. 1l

11

10

10

11

11

11

I2

I2

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l4

.. 12

Burnham v. Superior Court of Caliþrnia, Cty. of Marin,4es u.s. 604 (1990) 13

Asahi Metal Ind. Co., Ltd. v. Superior Court of Ca1.,480 U.S. 102 (1987). . . . . 13n

.15

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Introduction

This appeal is not as straight forward as it seems. The Court's decision in

this seemingly innocuous subrogation appeal could have wide-ranging impact on

innumerable personal injury actions, ranging from strict product liability claims to

claims involving asbestos manufacturers, to claims arising under the Federal

Employer's Liability Act (FELA), 45 U.S.C. $$ 51 et seq. Clearly, that is why

three asbestos manufacturers have filed a joint arnicus brief on behalf of the

defendant warehouse manufacturer and the Illinois Trial Lawyer's Association

(ITLA) and the American Association for Justice (AAJ) are flrling a joint brief on

behalf of an insurance company!

Narrowing personal jurisdiction is a significant goal of manufacturers in the

United States. Keeping access to the courts available to injured persons is primary

to ITLA and AAJ. However, since the United States Supreme Court held, in

Daimler AG v. Bauman, 571U.S. _, 134 S.Ct. 746,758 (2014), that under the

Due Process Clause, a corporation is subject to general jurisdiction only where it is

"essentially at home," the state and federal courts have been bombarded with

litigation over the requirements for showing personal jurisdiction.

Indeed, the United States Supreme Court has recently allowed certiorari in

two matters involving general and specific personal jurisdiction. See, Tyrrell v.

BNSF Ry. Co.,383 Mont. 417 (2016), cert granted January 19,2017,2017 WL

125672 (FELA action where the Supreme Court of Montana held that a nonresident

I

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defendant railroad was subject to the general jurisdiction of that state in an FELA

action where it maintained substantial or continuous and systematic contacts with

Montana even though the cause of action was unrelated to the defendant's activities

within Montana); Bristol-Myers Squibb Company v. Superior Court of San

Francisco County,l Cal.sth 783,206 Cal.Rptr.3d 636,377 P.3d'874 (2016), cert

granted, January 19,2017,2017 WL2l5687t (the Supreme Court of California

held that Bristol-Myers, a non-resident defendant, was subject to specific personal

jurisdiction of the state court because its California activities were sufficiently

related to the plaintiff s claims). Further, the Supreme Court of Missouri very

recently ruled, on February 28,2017, on a general and specific personal jurisdiction

issue in an original proceeding in prohibition in an FELA matter. State Ex ReL

Norfolk Southern Railway Co. v. The Honorable Colleen Dolan,_ SW3d. _,

2017 WL770977 SC 95514. And, in August of 2016, the United States District

Court for the Southern District of Florida decided Waite v. AII Acquisition Corp et

a1.,20I6WL2346743, holding, on a motion for reconsideration, that it did not

have personal jurisdiction over Union Carbide in a personal injury action arising

rln the Supreme Court of California, the following organizations flrledamicus briefs on behalf of the petitioner, Bristol-Myer Squibb: Chamber ofCommerce of the United States of America, California Chamber of Commerce andPharmaceutical Research and Manufacturers of America, Generic PharmaceuticalAssociation, American Tort Reform Association, National Association ofManufacturers, National Federation of Independent Business and JuvenileProducts Manufacturers Association and Washington Legal Foundation. TheAmerican Association for Justice and Consumer Attorneys of California filedamicus briefs on behalf of the Real Parties in Interest.

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out of exposrue to "asbestos dust" frorn products that Union Carbide manufactured,

where the plaintiff was exposed to them in Massachusetts.

While the issue presented here - whether an Illinois court has personal

jurisdiction against Interstate Warehousing, Inc. (Interstate), a warehouse company

that is incorporated and has its principal place of business in Indiana, for a loss that

occurred when a warehouse roof collapsed in Michigan, where it has a 12,077,000

cubic foot warehouse in Joliet, with 44,304 pallet positions, promotes itself as

having a.Chicago presence, and has a registered agent in Chicago - is important to

the parties, the particular case does not provide a good vehicle for providing the

bench and bar with guidance on the larger issue or personal jurisdiction.

Accordingly, these amici believe the ruling in this case should be narrowly confined

to the speciflrc facts presented.

Here, it is undisputed that plaintiff made a prima facie case for personal

jurisdiction. It is likewise undisputed that Interstate elected not to present afactual

record that could have, at least theoretically, defeated the showing. Based on these

plain facts, this Court should not reward the defendant's obvious gamesmanship by

writing a wide-ranging opinion on personal jurisdiction. For this reason alone, the

appellate court's decision should be affirmed.

But there is more. The appellate court's decision should be affirmed for

other reasons as well. Interstate is clearly "at home" in Illinois and it consented to

jurisdiction by having a registered agent in Chicago.

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Argument

THE LO\ilER COURTS PROPERLY DECIDED THISCASE WHERE PLAINTIFF MADE A PRIME FACIESHOWING OF JURISDICTION AND DEFENDANT

DID NOT DEFEAT THAT SHOWING.

The law is fully-settled as to the procedure to be followed when a defendant

such as Interstate seeks dismissal of a cause of action for lack of general personal

jurisdiction: the plaintiff need only establish a prima focl¿ basis to exercise

personal jurisdiction over a defendant, and any factual conflicts must be resolved in

the plaintiffls favor. Russell v. SNFA,2013lL 113909 atl28. Once the plaintiff

meets the minimal primafacle showing for jurisdiction, the burden shifts to the

defendant to prove jurisdiction in Illinois is unreasonable. Flanders v. Caliþrnia

Coastal Cmtys., Inc.,356Ill.App.3d 1113, 1117 (5th Dist. 2005).

The trial court applied these settled rules in the case atbar. Plaintiff made a

primafacie showing ofjurisdiction and the defendant did not defeat that showing

It made no effort at all to show that jurisdiction in Illinois was uffeasonable.

The Appellate Court applied these settled rules as well. It reviewed the trial

court's ruling de novo and affirmed the trial court's ruling denying Interstate's

motion to dismiss. There was no flaw in the lower courts' analysis of the

jurisdictional issue

I.

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Most significantly, the defendant does not even argue that the lower courts

applied the wrong rules.

Instead, the defendant asks the Court to change the rules and apply them to

this case. It seeks to contort and revise the established burden ofproof. It argues

that the plaintiff should "bear the burden of producing evidence demonstrating that

the defendant's activities in lllinois are so substantial compared with its activities

nationwide that defendant may properly be considered 'at home' in this State."

(Interstate Br. at 1.) Shifting the burden of proof to plaintiff in this case would be

unconscionable.

This Court can take judicial notice of the fact that Interstate is not a publicly

tradedcompany. Peoplev. Davis,65 I1l.2dl57,16l (1976) ("matters susceptible

ofjudicial notice include facts 'capable of immediate and accurate demonstration

by resort to easily accessible sources of indisputable accuracy"' (internal citations

omitted.)) Due to the private nature of defendant's business, plaintiff was

obviously crippled in its ability to obtain detailed financial information about

lnterstate. It did its best by submitting information about the extent of Interstate's

business in Illinois from Interstate's own advertising. Interstate's internet site

showed that Interstate boasts of its Chicago connections. Plaintiff also presented

evidence that Interstate had a registered Illinois agent, CT Corp., in Chicago. (A75;

sR 48.)

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In seeking dismissal, lntestate made a calculated decision to provide no

evidence to the court to defeat plaintiffls claim. At the argument on the motion,

"the trial court asked defense counsel about the volume of business transacted in

Joliet, and the square footage of the Joliet warehouse, but counsel was unable to

respond to either question." Aspen v. Interstate,2016IL App (1st) 151876,1.[59.

Interstate alone had this information.' Id. Interstate refused to provide it.

As this Court stated long ago, "Something more than the morals of a

medieval market place may reasonably be expected in the conduct of litigation."

Elfrnanv. Evanston Bus Co.,27llLzd 609, 615 (1963), quoted approvinglyin

Ruggiero v. Attore,5l ill.App.3d 139,144 (lst Dist. 1977). See also, Jansrna

Transport, Inc. v. Torino Baking Co.,27 I11.App.2d 347,354 (lst Dist. 1960)

(same). Interstate's morals were lacking.

Based on Interstate's conduct alone, the Appellate Court's decision should

be affirmed.

2Rather surprisingly, in its brief, lnterstate infers that the court was askingplaintiffls counsel for these answers, not defense counsel: "Interstate noted thatplaintiff presented no evidence answering any of these questions." (Interstate Br.at 3.) Interstate is obviously disingenuous.

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II.

JURISDICTION OVER INTERSTATE IS PROPER ANDCONSISTENT WITH TRADITIONAL NOTIONS OF'

FAIR PLAY AND SUBSTANTIAL JUSTICE

No matter how this Court analyzes the facts of this case, all analyses lead to

the same conclusion - jurisdiction over Interstate in Illinois in this case is consistent

with over one hundred years of "traditional notions of fair play and substantial

justice." Daimler AG v. B auman, 57 1 U. S. _, 134 S.Ct. 7 46 (201Ð1' International

Shoe Co. v. Washington,326 U.S. 310, 317 (1945). There is no constitutional

impedirnent to having Interstate answer to Aspen in Illinois. To the extent there are

questions regarding whether Illinois is the best forum for this case, the longstanding

doctrines of þrum non conveniens, venue, and choice-of-law fully address these

concerns - as they have for centuries - without implicating constitutional concerns

A. Interstate consented to personal jurisdiction in Illinois byregistering an agent for service of process within the state andcontinuously conducting intrastate business in lllinois.

Since personal jurisdiction represents an individual right, it "can, like other

such rights, be waived." Ins. Corp. of lreland, Ltd. v. Conpagnie des Bauxites de

Guinee,456 U.S. 694,703 (1982). A traditional way of obtaining consent that the

United States Supreme Court and other courts have recognized is registration of an

agent for service of process in accordance with a state statute requiring registration

to conduct substantial intrastate business. Railroad Co. v. Harris,79 U.S. 65, 8l

(1871); Ex parte Schollenberger,96 U.S. 369, 374 (1877); Pennsylvania Fire Ins.

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Co. v. Gold Issue Mining & Milling Co.,243 U.S. 93, 95 (1917) (Court likened the

appointrnent of an agent to accept service of process to a vote by the corporation to

accept service of process;both acts are voluntary submissions to a court's personal

jurisdiction over even transitory causes of action,) Pennsylvania Fire has never

been ovemrled. See also, Neirbo Co. v. Bethlehem Shipbuilding Corp.,308 U.S.

165, 175 (1939) (assigning an agent for service of process in a state makes a

corporation subject to suit in that state's court, including federal courts sitting

within the same states, even for injuries occurring outside that state); Perkins v.

Benguet Consol. Mining Co.,342 U.S. 437, n.4 (1952) (same); Mississippi Pub.

Corp. v. Murphree,326 U.S. 438, 441 (1946) (same). The Second Restatement

also recognizes the validity of consent jurisdiction. Restatement (Second) of

Conflict of Laws $ aa (Am. Law Inst. l97l).

A foreign corporation is only required to register to do business in Illinois, if

its Illinois activities involve areal presence in the State and amount to doing

intrastate business. See 805 ILCS 5/13.75 (expressly excluding from registration

requirement those corporations whose activities are limited, temporary andlor

entirely interstate in nature). In other words, a corporation need not register and

thereby consent to general jurisdiction unless its presence and activities here

approach being "at home" in the first place. Illinois guards against overextending

its general jurisdictional reach by setting a meaningful threshold for registration and

by not compelling a foreign corporations to register just to set foot in Illinois.

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The Illinois' Business Corporation Act has more to say on jurisdiction of

foreign corporations. It also grants foreign corporations who conduct intrastate

business in Illinois, like Interstate, the rights of Illinois corporations and assigns

them the same duties

A foreign corporation which shall have received authority to transactbusiness under this Act shall.. .enjoy the same, but no greater, rightsand privileges as a domestic corporation organized for the purposesset forth in the application pursuant to which such authority isgranted; and...shall be subject to the same duties, restrictions,penalties, and liabilities now or hereafter imposed upon a domesticcorporation of like character.

805 ILCS 5/13.l0 (emphasis added). It is unquestionable that a "duty'' of an

Illinois domestic corporation is to defend lawsuits in which it is named in lllinois.

This contract with the state allows Interstate to participate fully in the Illinois

economy. Interstate has taken advantage of that status by conducting business and

employing workers in Joliet for its own benefit. Interstate cannot now legitimately

claim its constitutional rights are somehow violated by defending this suit in

Illinois. Such a clairn is baseless.

Illinois courts have long since recognized the duty of registered foreign

corporations to respond to lawsuits in lllinois. In Hannibql & St. Joseph R.R. Co. v

Crane, 102 Ill. 249,255 (1882), this Court stated that when an lllinois statute

"subjects foreign corporations to all of the liabilities, restrictions and dutíes" that

are imposed on domestic corporations, "they may be sued and served with process

in the same manner." (emphasis added). See also, í4/alrus Mfg. Co v. New

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Amsterdam Cas. Co,184 F.Supp.214,218 (S.D. Ill. 1960) ("consent in writing to

be sued in Illinois as a prerequisite to issuing a certificate of authority to do

business in this State" has been required "since the early history of this State"). If

this Court were to find that foreign corporations with Illinois agents are not subject

to Illinois jurisdiction, this Court would be overturning more than a century of

Illinois precedent.

Illinois is hardly the only state to interpret the "duties, restrictions, penalties,

and liabilities" language in its registration statute as conferring jurisdiction on

registering corporations. ln llerner v. [4/al Mart Stores, Inc., 1 16 N.M. 229,861

P.2d270,272-73 (Ct. App. 1993), the New Mexico Court of Appeals held the

familiar "duties, restrictions, penalties, and liabilities" language put corporations

choosing to register for the right to conduct intrastate business on notice that they

will be subject to jurisdiction in New Mexico's courts . See also, Allstate Ins. Co. v.

Klein,262 Ga. 599, n.2 (Ga. 1992) (same); Knowlton v. Allied Van Lines, Inc., 900

F.2d 1196, 1199 (8th Cir. 1990) (Minnesota's statute contains the "rights and

privileges" language also contained in Section 13.10 and the Eighth Circuit held

that such language constituted the consent of registering corporations).

The United States Supreme Court has never required a minimum contacts, or

"at home" analysis when personal jurisdiction is obtained by consent. The voluntary

choice of the corporation to enter the state and conduct intrastate business does not

invoke due process concerns. The Supreme Court has only undertaken a minimum

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contacts analysis when a defendanthas not consented to personal jurisdiction.

Internationøl Shoe,326 U.S. at3I71' Burger King Corp. v. Rudzewicz,4Tl U.S.

462,472 (1985); J. Mclntyre Mach., Ltd. v. Nicastro,564 U.S. 873,877 (2011).

EvenDaimler and Goodyear expressly analyze defendants who have not consented

to jurisdiction. Daimler,I34 S.Ct. at 756; Goodyear Dunlop Tires Op., S.A. v

Brown,564 U.S. 915,928 (2011).

In sum, while conducting its jurisdictional analysis, this Court shouldy'rs/

determine if there is a traditional means ofjurisdiction and, if not, only then move

forward with a minimum contacts analysis. See, e.g., Perkins,342 U.S. at 439

Therefore, this Court need not undertake a minimum contacts analysis because of

Interstate's intentional consent to Illinois' jurisdiction by registration and intrastate

business under the Act.

Illinois has general jurisdiction in this case because Interstate haschosen to make itself "at home" in lllinois.

The conclusion that jurisdiction over Interstate in Illinois is constitutionally

proper remains the same if the Court applies the "at home" framework from

Goodyear and Daimler. Interstate has made itself at home in our state through

systematic, regular and intrastate contacts with Illinois. Interstate's attempt to latch

onto a tenuous reading of Daimler to shield itself from Illinois jurisdiction cannot

erase its clear corporate residence in Illinois. Fair play and substantial justice

require finding general personal jurisdiction over Interstate.

1l

B.

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I2

If this Court determines that analysis beyond lnterstate's registration and

consent to jurisdiction is warranted, the Court should flrnd that Interstate has

"certain minimum contacts" with Illinois such that the maintenance of suit

purportedly not related to Interstate's activity in Illinois does not offend "traditional

notions of fair play and substantial justice." International Shoe,326 U.S. at316

The Court reiterated this jurisdictional touchstone in Daimler, holding general

jurisdiction is proper when a corporation has such continuous and systematic

business contacts that it is rendered "at home" in the forum." Daimler,l34 S.Ct. at

754; see also Goodyear,564 U.S. at 919. To the extent "a corporation exercises the

privilege of conducting activities within a state, it enjoys the benefits and

protections of the laws of that state." International Shoe,326 U.S. at3I9; See also

Perkins,342 U.S. at444 ("The essence of the issue here, at the constitutional level,

is a like one of general fairness to the corporation.")

From all that can be gleaned from the limited information Aspen and the trial

court could unearth, Interstate's contacts with Illinois demonstrate that it has made

itself "at home" in lllinois. It chose to become a corporate resident in Illinois and

registered with the Illinois Secretary of State. It set up shop here, just like any other

Illinois corporate citizen. It built one of its largest warehousing sites in our state,

where it employs Illinois workers. Its Joliet warehouse is 12,077,000 cubic feet

with 44,304 pallet positions. It ostensibly takes advantage of the benefits of

Illinois, including ambulatory services, police services and the court system. See

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Burnhamv. Superíor Court of California, Cty. of Marin,495 U.S. 604,637-38

(1990) (jurisdiction proper over defendant who avails himself to state's police, fire,

and emergency medical services, is free to travel the state's roadways, and "likely

enjoys the fruits of the State's economy.") (Brennan, concurring).

Nothing about the Supreme Court's opinion in Daimler defeats this flrnding.

The Court in Daimler applied long-held jurisdictional tenets to determine that a

German corporation lacked the requisite contacts to render it "at home" in

California to allow general jurisdiction over an Argentinean-based dispute.3 Id. at

750-54. Daimler noted that the "paradigm" states where corporation can be

considered at home include its state of incorporation and principal place of

business, but was explicit that these are not the only forums for general jurisdiction.

Id. at 760. The inquiry Daimler requires is a determination of whether a

corporation's affiliations with the State are "so 'continuous and systematic' as to

render [it] essentially at home in the forum." Id. at 761 (citing Goodyear,l3l S.Ct.

at285I). Daimler made no attempt to define the boundaries of the "exceptional"

case where a corporation's operations in a forum are so substantial that it should be

considered at home in the non-paradigm states. Id. at n. 19. Given the unique facts

of Daimler, no such analysis was necessary. Interstate, nevertheless, wrongly

3 The "transnational" nature of the dispute factored into the Court's analysisin Daimler. Id. at762.The Court has previously expressed concern for the"unique burdens" placed upon one who must defend oneself in a foreign country'slegal system. Asahi Metal Ind. Co., Ltd. v. Superior Court of Ca1.,480 U.S. 102,

1 14 (1987). Interstate faces no such burden.

13

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portrays Daimler as dramatically changing the concept of general jurisdiction in all

factual scenarios - an interpretation that requires this Court to assume that the

Supreme Court did not mean what it specifically stated in Daimler. That

construction is wrong.

Interstate's attempt to escape jurisdiction by framing Perkins as evidencing a

threshold for the exceptional circumstances waffanting general jurisdiction instead

of what it is: an example of such exceptional circumstances where general

jurisdiction is proper, is fallacious. Nowherc in Perkir¿s did the Court limit its ruling

to corporations whose presidents are fleeing war and must manage the corporation

from a makeshift control center in another state. Interstate's decision to register to

do business in lllinois, build a huge warehouse here, and otherwise take advantage

of all of the benefits of residence in Illinois, more than suffices for it to be

considered 'oat home" in Illinois such that exercising general jurisdiction does not

offend traditional notions of fair play and substantial justice.

Illinois has always required a corporation's contacts with the state to be so

substantial that it is deemed to have "taken up residence" in Illinois for general

jurisdiction. See, e.g., Russell,2013IL 113909 atll361' Morgan, Lewís and Bockius

LLP v. Cíty of E. Chicago,4Ol Ill.App .3d947,953 (lst Dist. 2010) . Daimler is

fully in accord with the general jurisdiction analysis Illinois has long applied.

Illinois courts have determined that, while there is no all-inclusive test, a

corporation evidences its intention to be "at home" in our state by carying out

I4

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business aetivity "not occasionally or casually, but with a fair measure of

permanence and continuity." Rokeby-Johnson v. Derek Bryant Ins. Brokers, Ltd.,

230lll.App.3d 308, 318 (lst Dist. 1992) (citing CookAssoc.,Inc. v. Lexington

United Corp., 87 Ill.2d 190 (l 98 1).)

15

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CONCL USION

The Appellate Court's published opinion in this case follows well-

established federal and state law. This Court should affirm the Appellate Court's

decision. Reversing it would reward a defendant for improper gamesmanship.

Equally important, reversal would be inconsistent with long-standing law on the

impact of having a registered agent in the state as well as the well-established law

on personal jurisdiction.

Respectfully submitted,

s/ Leslie J. Rosen

Leslie J. Rosen - [email protected], Amicus Curiae CommitteeIllinois Trial Lawyers AssociationLESLIE J. ROSEN ATTORNEY AT LAW, P.C.180 N. LaSalle StreetSuite 3650Chicago,IL 60601312 994-2435

Jeffrey White - Jeffrey.White@j ustice. orgAmerican Association for Justice777 6th St. N.W.Washington, D.C.20001(202) 96s-3500

I6

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CERTIFICATE OF COMPLIANCE

I certify that this amicus brief conforms to the requirements of Rules 3al@)and (b). The length of the briet excluding the pages containing the Rule 341(d)cover, the Rule 341(hX1) statement of points and authorities, the Rule 341(c)certificate of compliance, the certificate of service, and those matters to beappended to the brief under Rule 342(a) is 16 pages.

By: /sl Leslie J. Rosen

t7

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No. 12128104t1912017

IN THE SUPREME COURT OF ILLINOIS SUPCMECOUÍTCIGTK

* *** ** d!* s** * ** i* ** * ** *** ** * ** * ****

ASPEN AMERICAN INSURANCE CO., as subrogee of EasternFish Company,

Plaintiff-Appellee,VS

INTERSTATE WAREHOUSING, INC.,Defendant-Appellant.

On Appeal From the Appellate Court of lllinois, First Judicial District, No. 1-15-1876.There Heard on Appeal from the Circuit Court of Cook County, No. 14 L 7376.

The Honorable John P. Callahan, Jr,, Judge Presiding

NOTICE OF FILING

TO: See attached Service List

Please take notice that on April Il,2017 I electronically filed the ILLINOISTRIAL LAWYERS ASSOCIATION AND AMERICAN ASSOCIATION FORruSTICE'S MOTION FOR LEAVE TO FILE A JOINT AMICUS BRIEF IN SUPPORTOF PLAINTIFF-APPELLEE ASPEN AMERICAN INSURANCE COMPANY alongwith a draft order and proposed brief. A copy of the motion, draft order and brief areattached to this motion and served on you.

/s/ Leslie J. RosenLeslie J. [email protected] J. ROSEN ATTORNEY AT LAW, P.C.180 N. LaSalle Street, Suite 3650Chicago, IL 60601(312) 994-243s CERTTFTCATE OF SERVICE

Leslie J. Rosen, an attorney, served the foregoing Notice along with a copy of themotion, draft Order and brief on the individuals listed below by emailing them this AprilIl,2017 before 5:00 p.m.

Under penalties as provided by law pursuant to Section 1-109 of the Code of CivilProcedure, the undersigned certifies that the statements set forth in this instrument are trueand correct, except as to matters therein stated to be on information and belief and as tosuch matters the undersigned certifies as aforesaid that she verily believes the same to betrue.

/si Leslie J. Rosen

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Leslie J. Rosen - [email protected], Illinois Trial Lawyers Association'sAmicus Curiae Committee134 N. LaSalle Street, 9th FloorChicago, IL 60602312 994-243s

SERVICE LIST

Kimberly A. JansenHINSHAW & CULBERTSON LLP222N. LaSalle Street, Suite 300Chicago, IL 60601-1081(312) 704-3000ki ans en(rÐ,hinshawlaw. c om

Timothy S. McGovernDaniel G. WillisSWANSON, MARTIN & BELL, LLP330 N. V/abash - Suite 3300(312) el00tmc governCd s mb tri als. c omd ewillis øD smbtrials. corn

Craig H. ZimmermanMichael W. WeaverMCDERMOTT WILL & EMERY LLP227 W. Monroe Street, Suite 4400Chicago,IL 60606(312) 372-2000czirnmerman@).mwe. c [email protected]

Tobin J. TaylorHEYL, ROYSTER, VOELKER &ALLEN, P.C.

33 N. Dearborn Street, 7th FloorChicago, IL 6062(312) 853-8700ttavLor (@heylroys t er. c om

Michele OdorizzíRichard F. BulgerGary A. Isaac

MAYER BROWN LLP71 S. Wacker DriveChicago, IL 60606-4637(3r2) 782-0600mo do ri zzi (r? maverbro wn. com

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