Laura Denvir Stith, Judge.
Norfolk Southern Railway Company, a Virginia corporation, seeks a writ of prohibition directing the trial court to dismiss the underlying personal injury action brought against it under the Federal Employer's Liability Act (FELA), 45 U.S.C. §§ 51 et seq. Norfolk alleges Missouri has no personal jurisdiction over it where, as here, the injury occurred in Indiana to Russel Parker, an Indiana resident, as a result of his work for Norfolk in Indiana.
This Court agrees that Missouri does not have specific or general personal jurisdiction over Norfolk. Though Norfolk does own and operate on railroad tracks in Missouri, the personal injury action did not arise out of, and does not relate to, Norfolk's activities in Missouri, thereby depriving Missouri of specific jurisdiction. A plaintiff may bring an action in Missouri on a cause of action unrelated to a corporation's Missouri activities if the corporation is incorporated in Missouri, has its principal place of business in Missouri, or in the exceptional case when its contacts with Missouri are so extensive and all-encompassing that Missouri, in effect, becomes another home state. None of these requirements is met here. While Norfolk does substantial and continuous business in Missouri, it also conducts substantial and continuous business in at least 21 other states, and its Missouri business amounts to only about 2 percent of its total business. This is insufficient to establish general personal jurisdiction over Norfolk.
This Court also rejects Parker's argument that, by complying with Missouri's foreign corporation registration statute, Norfolk impliedly consented to general jurisdiction in Missouri, as well as the argument that FELA provides an independent basis for jurisdiction over Norfolk. Missouri's registration statute does not require foreign corporations to consent to suit over activities unrelated to Missouri, and the cited FELA statute is a venue statute that does not provide an independent ground for jurisdiction of FELA cases in state courts that do not otherwise have personal jurisdiction over the defendant. The preliminary writ of prohibition is made permanent.
The underlying action is a personal injury FELA lawsuit filed in St. Louis County by Russell Parker, a resident of Indiana, against Norfolk, a Virginia corporation with its principal place of business in Virginia. Parker alleges cumulative trauma
Norfolk annually complies with Missouri's foreign business registration statutes by registering with the state and designating an agent to receive service of process. §§ 351.574 et seq.
Norfolk moved to dismiss for lack of personal jurisdiction. After a hearing, the trial court overruled the motion without stating the grounds for its ruling. Norfolk then filed a petition for a writ of prohibition or, in the alternative, a writ of mandamus in the Missouri Court of Appeals. That petition was denied, and Norfolk sought the same relief in this Court. This Court issued a preliminary writ of prohibition.
Parker argues that Missouri has both general and specific jurisdiction over Norfolk and, alternatively, that Norfolk consented to personal jurisdiction by registering to do business in Missouri and appointing a Missouri agent for service of process, or that FELA confers specific personal jurisdiction over a railroad in any state where the railroad owns or operates tracks. For the reasons set out below, this Court rejects these arguments, which often inappropriately blur the distinct bases on which each type of jurisdiction is based. Because the Court finds that none of the bases for jurisdiction alleged is supported by the record, the preliminary writ is made permanent.
This Court has discretion to issue and determine original remedial writs. Mo. Const. art. V, § 4.1. "Prohibition is the proper remedy to prevent further action of the trial court where personal jurisdiction of the defendant is lacking." State ex rel. William Ranni Assoc., Inc. v. Hartenbach, 742 S.W.2d 134, 137 (Mo. banc 1987) (issuing a writ for the trial court's improper denial of a motion to dismiss for lack of personal jurisdiction). "The extraordinary remedy of a writ of prohibition is available: (1) to prevent the usurpation of judicial power when the trial court lacks authority or jurisdiction; (2) to remedy an excess of authority, jurisdiction or abuse of discretion where the lower court lacks the power to act as intended; or (3) where a party may suffer irreparable harm if relief is not granted." State ex rel. Missouri Pub. Def. Comm'n v. Waters, 370 S.W.3d 592, 603 (Mo. banc 2012). However, prohibition is only proper "when usurpation of jurisdiction... is clearly evident." State ex rel. Tarrasch v. Crow, 622 S.W.2d 928, 937 (Mo. banc 1981).
Personal jurisdiction is the authority of a court over the parties in a particular case. State ex rel. Kansas City S. Ry. Co. v. Nixon, 282 S.W.3d 363, 365 (Mo. banc 2009); Ins. Corp. of Ireland v. Compagnie des Bauxites de Guinee, 456 U.S. 694, 702, 102 S.Ct. 2099, 72 L.Ed.2d 492 (1982). It is a due process requirement that limits the power of state courts over litigants. Daimler AG v. Bauman, ___ U.S. ___, 134 S.Ct. 746, 751, 187 L.Ed.2d 624 (2014); Bryant v. Smith Interior Design Grp., Inc., 310 S.W.3d 227, 231 (Mo. banc 2010). The basis of a court's personal jurisdiction over a corporation can be general — that is, all-purpose jurisdiction — or it can be specific — that is, conduct-linked jurisdiction. Daimler, 134 S.Ct. at 751. Additionally, because personal jurisdiction is an individual right, a defendant may waive jurisdictional objections by consenting to personal jurisdiction. State ex rel. Heartland Title Servs., Inc. v. Harrell, 500 S.W.3d 239, 241 (Mo. banc 2016).
"When a State exercises personal jurisdiction over a defendant in a suit not arising out of or related to the defendant's contacts with the forum, the State has been said to be exercising `general jurisdiction' over the defendant." Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 415 n.9, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984). In recent years, the Supreme Court has clarified the test for when the exercise of general jurisdiction over a corporation comports with due process. Daimler, 134 S.Ct. at 754; Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 919, 131 S.Ct. 2846, 180 L.Ed.2d 796 (2011). A court normally can exercise general jurisdiction over a corporation only when the corporation's place of incorporation or its principal place of business is in the forum state. Goodyear, 564 U.S. at 919, 131 S.Ct. 2846; Daimler, 134 S.Ct. at 754.
Parker argues that Norfolk's "continuous and systematic" business in Missouri supports finding that Missouri has general jurisdiction over it even for cases not arising from its activities in Missouri. Prior to Daimler, this would have been a valid argument. State ex rel. K-Mart Corp. v. Holliger, 986 S.W.2d 165, 168-69 (Mo. banc 1999). But, it is no longer the law. In Daimler, the plaintiff similarly argued a large corporation's subsidiary conducting substantial and continuous business in the state as the state's largest seller of luxury cars was sufficient to establish jurisdiction. Daimler, 134 S.Ct. at 752, 758. The Supreme Court expressly rejected that argument. While Daimler did substantial and continuous business in California, it did business throughout the United States and its California business constituted only 2.4 percent of its total sales. Id. at 752. The Supreme Court held
Brown v. Lockheed Martin Corp., 814 F.3d 619, 627-30 (2d Cir. 2016), applied Daimler's appraisal of a foreign corporation's forum activity to Lockheed, which was sued in Connecticut for a claim not connected in any way to its Connecticut activities. Lockheed was incorporated and had its principal place of business in Maryland, but it registered to do business in Connecticut and complied with Connecticut's registration statutes requiring designation of an in-state agent to receive service of process. Id. at 622. Over the relevant time span, it generated approximately $160 million in revenue and employed between 30 and 70 people per year in Connecticut; maintained a physical presence in the state, including lease of a 9,000-square-foot building for at least 15 years; carried worker's compensation insurance and defended eight lawsuits in the state during the relevant time span. Id. at 622, 628 & n.9.
Though Lockheed's Connecticut business was substantial, it composed only a small portion of its overall business: for the relevant time period, only 0.05 percent of Lockheed's employees and no more than 0.107 percent of its total revenue came from its Connecticut activities. Id. at 629. The Second Circuit concluded, "Lockheed's contacts with Connecticut fall far short of the relationship that Due Process requires, under Daimler and Goodyear, to permit the exercise of general jurisdiction over Lockheed by Connecticut courts." Id. at 630.
This analysis is directly applicable here. Norfolk owns or operates some 400 miles of track, generates approximately $232 million in revenue, and employs some 590 people in Missouri. It has appointed a registered agent in Missouri. Yet this activity in Missouri represents a tiny portion of Norfolk's entire nationwide business. Norfolk generates only about 2 percent of its total revenues from its Missouri activities. It generates greater revenue in 11 other states. It has track in 22 states; only about 2 percent of the track it owns and 2 percent of the track it operates is in Missouri. Only about 2 percent of its total employees are in Missouri as well. Norfolk has more employees in each of 13 other states than it does in Missouri. Its Missouri contacts are insufficient to establish general jurisdiction over Norfolk in Missouri under the principles set out in Daimler, 134 S.Ct. at 757.
Parker notes that Norfolk has sued and been sued in Missouri courts in the past and that this constitutes a recognition of jurisdiction in Missouri courts. Parker also reiterates that Norfolk has many miles of track in Missouri and might be sued by Missouri residents, so Missouri is not an inconvenient or unexpected place for it to be sued, and, as such, Norfolk should be considered at home in Missouri.
Parker's arguments blur the distinction between general and specific jurisdiction as well as between jurisdiction and venue. Id. The prior suits against Norfolk that Parker cites were suits based on specific jurisdiction because they concerned injuries that occurred in Missouri or arose out of Norfolk's activities in Missouri. Considerations of convenience may also have made venue appropriate in particular Missouri courts for those suits. Nonetheless, the minimum contacts that suffice to provide specific jurisdiction over such a particular Missouri-related lawsuit do not also confer general jurisdiction over a particular company for a non-Missouri-related lawsuit.
Here, the record shows that most of the other 21 states in which Norfolk conducts business have at least as much contact with it as does Missouri, in which only 2 percent of its business and employees are located. That this is still a large dollar amount of business does not make it a basis for finding that Missouri and these other 21 states are all "home" states for Norfolk. The nature of Norfolk's activities in Missouri are quite distinct from the "nerve-center" of activities that the Supreme Court has said might be sufficient to make a "home" state. See Hertz Corp. v. Friend, 559 U.S. 77, 92, 130 S.Ct. 1181, 175 L.Ed.2d 1029 (2010). Norfolk's activities in Missouri are only a very small part of its overall activities, and not of the nature that makes Missouri its de facto principal place of business. Missouri courts may not assert general jurisdiction over Norfolk in the underlying case.
Parker also argues that Missouri has specific jurisdiction over Norfolk. Specific jurisdiction requires consideration of the "relationship among the defendant, the forum, and the litigation." Andra v. Left Gate Prop. Holding, Inc., 453 S.W.3d 216, 226 (Mo. banc 2015), quoting Walden v. Fiore, ___ U.S. ___, 134 S.Ct. 1115, 1121, 188 L.Ed.2d 12 (2014). Daimler notes that specific jurisdiction "encompasses cases in which the suit arises out of or relates to the defendant's contacts with the forum." 134 S.Ct. at 748-49 (internal quotation and alterations omitted). Because Norfolk has purposefully availed itself of the opportunity to do business in Missouri, it would be subject to specific jurisdiction in Missouri. But that jurisdiction would exist only over claims that are related to those contacts. See Andra, 453 S.W.3d at 227; Bryant v. Smith Interior Design
For the reasons already discussed, Norfolk's contacts are not sufficient to establish general jurisdiction. Only if the instant suit arises out of Norfolk's contacts with Missouri does Missouri have specific jurisdiction. Parker pleaded no facts alleging that the injury arose from Norfolk's Missouri activities. Therefore, the fact that he could sue in Missouri in a case in which the injury arose out of his contacts with Missouri does not support finding general personal jurisdiction here.
Parker alternatively argues that Missouri has personal jurisdiction over Norfolk because it does engage in railroad business in Missouri and the injuries arose out of railroad business conducted by Norfolk in Indiana, so the injuries in Indiana were injuries "arising from or related to" the same "type" of activities as Norfolk's Missouri activities.
While Parker cites cases utilizing a variety of tests for determining when a specific injury "arises from or relates to" the defendant's activity in the forum state — tests ranging from but-for causation to proximate cause — none support the proposition that, if a company is a national company that does the same "type" of business in the forum state as in the rest of the country, it can be sued anywhere. Just because a company like Ford, for example, sells cars in Iowa and in California, does not mean there is jurisdiction in California for injuries that occurred in Iowa simply because Ford engages in the same "type" of activity — selling cars — in both states. Such an argument goes even further than the pre-Daimler approach to general jurisdiction that Daimler rejected as providing no authority for general jurisdiction over a company. To say this same conduct confers specific jurisdiction over suits the facts of which have no relationship to the forum state would be to turn specific jurisdiction on its head. There would never be a need to discuss general jurisdiction, for every state would have specific jurisdiction over every national business corporation. Parker
Parker further argues that FELA itself provides specific jurisdiction any place a railroad corporation has tracks. The relied-upon provision in FELA does not even purport to confer personal jurisdiction. Venue refers to where suit may be brought and not the power of the court over defendants, and the first part of the provision has long been characterized by the United States Supreme Court as "the venue provisions of [FELA]." Pope v. Atl. Coast Line R. Co., 345 U.S. 379, 380, 383, 73 S.Ct. 749, 97 S.Ct. 1094 (1953). It provides:
45 U.S.C. § 56 (emphasis added).
The final sentence of section 56 also does not address personal jurisdiction in state court. As the United States Supreme Court has explained, that sentence addresses subject matter jurisdiction of state and federal courts over FELA suits, but it is not intended to enlarge personal jurisdiction:
Mondou v. N.Y., New Haven & Hartford R.R., 223 U.S. 1, 56-57, 32 S.Ct. 169, 56 S.Ct. 327 (1912). In other words, "FELA provides a regime of concurrent federal and state jurisdiction, ... but this refers to subject matter jurisdiction.... Nothing in the act addresses the matter of personal jurisdiction in the state court." S. Pac. Transp. Co. v. Fox, 609 So.2d 357, 362-63 (Miss. 1992).
Parker's broader reading of FELA relies largely on three cases from the 1930s, '40s and '50s that do not actually discuss whether FELA confers personal jurisdiction. One is Pope, which was a venue case and did not address personal jurisdiction. Pope, 345 U.S. at 382-83, 73 S.Ct. 749. Miles v. Illinois Central Railroad Company, 315 U.S. 698, 62 S.Ct. 827, 86 S.Ct. 1129 (1942), also did not involve personal jurisdiction but rather "the burden of expense and inconvenience" and whether the railroad "must submit to inconvenience and expense,
Parker argues in the alternative that Norfolk consented to personal jurisdiction over any case filed against it in Missouri by complying with Missouri's foreign corporation registration statutes,
Norfolk notes, in Genuine Parts Company v. Cepec, 137 A.3d 123, 147 n.125 (Del. 2016), Delaware recently held that, as every state requires a foreign corporation doing substantial business in a state to register under the foreign corporation statutes and appoint an agent for service of process, id. at 125 n.1, a broad inference of consent based on registration would allow national corporations to be sued in every state, rendering Daimler pointless, id. at 126.
Similarly, here, this Court finds there is no need to determine whether Missouri's registration statutes constitutionally could condition doing business in Missouri on consent to general jurisdiction. The extent of any consent inferred from a registration statute "is a question of interpretation of the instrument in which the consent is expressed and of the statute, if any, in pursuance of which the consent is given." Restatement (Second) of Conflict of Laws § 44 (1971), comment c. The plain language of Missouri's registration statutes does not mention consent to personal jurisdiction for unrelated claims, nor does it purport to provide an independent basis for jurisdiction over foreign corporations that register in Missouri. Rather, section 351.594.1 provides the type of service an agent for service of process can receive, stating, "The registered agent of a foreign corporation authorized to transact business in this state is the corporation's agent for service of process, notice, or demand required or permitted by law to be served on the foreign corporation." (Emphasis added). That begs the question as to what type of service is required or permitted by law on foreign corporations. Missouri permits service on resident defendants, and on a corporation's agent for service of process, section 506.150.1(3), and Missouri's long-arm statute, section 506.500, permits service on defendants for causes of action arising out of their activities in Missouri, but neither these nor other Missouri statutes provide that suit may be brought in Missouri against non-resident corporations for suits unrelated to the corporation's activities in this state.
For these reasons, the Court concludes the circuit court lacks personal jurisdiction over Norfolk in the underlying personal injury action. The writ is made permanent.
Breckenridge, C.J., Fischer, Draper, Wilson and Russell, JJ., concur.
Goodyear, 564 U.S. at 923-24, 131 S.Ct. 2846.
By contrast, Goodyear said:
Id. at 924.
§ 351.633, RSMo 1978 (emphasis added). Section 351.633 was repealed in 1990 when the legislature overhauled much of chapter 351. L. 1990 H.B. 1432. The 1990 changes also moved the sections requiring designation of the agent and service of process on the designated agent to their current enumerations, sections 351.586 and 351.594, respectively, and they have remained relatively unchanged. The requirement of foreign corporations to register and designate an agent to receive service of process dates back to at least 1943. From at least that point, the provision for service has been limited to that "required or permitted by law to be served on a foreign corporation." L. 1943 p. 465 §§ 103, 105.