IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA
January 1994 Term
___________
No. 21757
___________
JOHNNY C. ABBOTT, ET AL.,
Plaintiffs Below, Appellants
v.
OWENS-CORNING FIBERGLAS CORPORATION, ET AL.,
Defendants Below, Appellees
___________________________________________________
Appeal from the Circuit Court of Cabell County
Honorable John L. Cummings, Judge
Civil Action Nos. 92-C-208; 92-C-1410;
92-C-1866; 92-C-1688; and 92-C-1649
REVERSED AND REMANDED
___________________________________________________
Submitted: January 12, 1994
Filed: April 22, 1994
Robert C. Chambers
Huntington, West Virginia
James F. Humphreys and John E. Sutter
Charleston, West Virginia
Attorneys for the Appellants
Fred Adkins
Mark H. Hayes
M. Margaret Evans
Huddleston, Bolen, Beatty, Porter & Copen
Huntington, West Virginia
Attorneys for Appellees
Harbison-Walker Refractories and Dresser Industries, Inc.
George J. Anetakis
Mark A. Colantonio
Frankovitch & Anetakis
Weirton, West Virginia
Attorneys for Appellee
Magneco Metrel, Inc.
Roger E. Podesta
William S. Adams
Debevoise & Plimpton
New York, New York
Patrick Riley
Riley & Defalice
Pittsburgh, Pennsylvania
Attorneys for Appellee
Owens-Corning Fiberglas Corp.
Robert P. Martin
Meyer, Darragh, Buckler, Bebenek & Eck
Charleston, West Virginia
Attorney for Appellee
Quin-T Corporation
Eric K. Falk
Pietragallo, Bosick & Gordon
Pittsburgh, Pennsylvania
Attorney for Appellee
Ohio Valley Insulating Company, Inc.
Julia Bennett Jagger
Michael E. Hutchins
Atlanta, Georgia
Attorneys for Appellee
Georgia-Pacific Corporation
Joseph S. Beeson
James S. Chase
Robinson & McElwee
Charleston, West Virginia
Attorneys for Appellees
Kaiser Aluminum & Chemical Corporation,
North American Refractories Company,
National Refractories and Minerals Corporation,
IMCERA Group, Inc. and Corhart
Refractories Corporation
Dawn K. Siladie
William & Arnold
Pittsburgh, Pennsylvania
Lester C. Hess, Jr.
Bachmann, Hess, Bachmann & Garden
Wheeling, West Virginia
Attorneys for Appellee
Rutland Fire Clay Company
Claudia Wickham Lane
Allen T. Lane
Lane & Lane
Pittsburgh, Pennsylvania
Attorneys for Appellee
Resco Products, Inc.
JUSTICE McHUGH delivered the Opinion of the Court.
SYLLABUS BY THE COURT
1. "The common law doctrine of forum non conveniens is
simply that a court may, in its sound discretion, decline to
exercise jurisdiction to promote the convenience of witnesses and
the ends of justice, even when jurisdiction and venue are
authorized by the letter of a statute." Syl. pt. 1, Norfolk and
Western Ry. Co. v. Tsapis, 184 W. Va. 231, 400 S.E.2d 239 (1990).
2. "The common law doctrine of forum non conveniens is
available to courts of record in this State. The doctrine accords
a preference to the plaintiff's choice of forum, but the defendant
may overcome this preference by demonstrating that the forum has
only a slight nexus to the subject matter of the suit and that
another available forum exists which would enable the case to be
tried substantially more inexpensively and expeditiously. To the
extent that Gardner v. Norfolk & Western Railway Co., [179] W. Va.
[724], 372 S.E.2d 786 (1988), cert. denied, 489 U.S. 1016, 109 S.
Ct. 1132, 103 L. Ed. 2d 193, (1989), declined to apply this
doctrine, it is overruled." Syl. pt. 3, Norfolk and Western Ry.
Co. v. Tsapis, 184 W. Va. 231, 400 S.E.2d 239 (1990).
3. The framework to analyze whether the common law
doctrine of forum non conveniens is applicable has been set forth
in Norfolk and Western Ry. Co. v. Tsapis, 184 W. Va. 231, 400
S.E.2d 239 (1990). This framework ensures that the doctrine of
forum non conveniens is applied flexibly and on a case-by-case
basis. A presumption that the forum is convenient when a defendant is a resident of that forum would undercut the flexibility of the
doctrine.
4. In order for this Court to review a trial court's
decision regarding the application of the doctrine forum non
conveniens, it is necessary for the trial court to provide a record
in sufficient detail which will show the basis of its decision.
5. A court must use a two-step approach when analyzing
whether personal jurisdiction exists over a foreign corporation or
other nonresident. The first step involves determining whether the
defendant's actions satisfy our personal jurisdiction statutes set
forth in W. Va. Code, 31-1-15 [1984] and W. Va. Code, 56-3-33
[1984]. The second step involves determining whether the
defendant's contacts with the forum state satisfy federal due
process.
McHugh, Justice:
This case is before this Court upon the appeal of over
one thousand plaintiffs, who filed product liability actions
against approximately seventy manufacturers, suppliers, and
distributors of asbestos-containing products for injuries sustained
from exposure to those products. The plaintiffs appeal the
December 1, 1992, orders of the Circuit Court of Cabell County.
For reasons set forth below, we reverse the circuit court's orders
and remand the case to the circuit court.
I
One of the December 1, 1992, orders finalizes and
incorporates a September 9, 1992, order that dismissed the claims
of 1,015 plaintiffs on grounds of forum non conveniens. The
circuit court found that the actions of the plaintiffs have no
nexus with the State of West Virginia since the plaintiffs reside
outside the State and since the plaintiffs do not claim exposure to
asbestos in West Virginia. Furthermore, the circuit court stated
that the fact that doctors in West Virginia have diagnosed the
plaintiffs is insufficient to create a nexus between the actions
filed by the plaintiffs and the State of West Virginia.
Additionally, the circuit court found that it would be extremely
confusing to apply the laws of the various jurisdictions in the
same action, and that the action would place a burden on the West Virginia courts causing undue congestion. The plaintiffs note that
three of the defendants are West Virginia corporations, and all but
five of the remaining defendants are registered to do business in
West Virginia. The defendants agreed not to assert a statute of
limitations defense in a subsequent action if the plaintiffs'
claims were dismissed on grounds of forum non conveniens.
The second December 1, 1992, order dismissed the claims
of West Virginia residents and nonresidents against five
nonresident corporate defendants for lack of personal jurisdiction
under the long-arm statute set forth in W. Va. Code, 31-1-15
[1984]. Those five defendants are North American Refractories
Company, Magneco Metrel, Inc., Rock Wool Manufacturing Company,
Zedmark, Inc. and Surface Combustion, Inc.
The circuit court found that those five defendants were
not registered with the Secretary of State's office in order to do
business in West Virginia and that the plaintiffs do not allege
exposure to asbestos in West Virginia. The circuit court also
found that pursuant to W. Va. Code, 31-1-15 [1984] the defendants
(1) did not make a contract to be performed in
whole or in part in West Virginia, (2) did not
commit a tort in whole or in part in West
Virginia, and (3) did not manufacture, sell,
offer to sell or supply a defective product in
West Virginia that caused harm to the
plaintiffs[.]
Additionally, the circuit court found that "the 'minimum contacts'
analysis relied upon by the plaintiffs for the purpose of
determining jurisdiction in this action must be considered in
addition to, and not in lieu of, the requirements of West Virginia
Code § 31-1-15[.]" Therefore, the circuit court concluded that it
was not necessary to determine whether the defendants had
sufficient minimum contacts with the State of West Virginia to
satisfy federal due process concerns since the plaintiffs could not
satisfy the requirements of W. Va. Code, 31-1-15 [1984].
II
The first issue is whether the circuit court erred by not
finding that the common law doctrine of forum non conveniens is
presumed to be unavailable when three of the defendants are West
Virginia corporations and all but five of the defendants are
authorized to do business in West Virginia. For reasons explained
below, we decline to hold that the doctrine of forum non conveniens
is presumed to be unavailable when a defendant is a resident of
West Virginia or is authorized to do business in West Virginia.
Recently, this Court recognized that the common law
doctrine of forum non conveniens is available to the courts of West
Virginia. Syl. pt. 3, Norfolk and Western Ry. Co. v. Tsapis, 184
W. Va. 231, 400 S.E.2d 239 (1990). When adopting the doctrine this
Court explained that "[t]he common law doctrine of forum non conveniens is simply that a court may, in its sound discretion,
decline to exercise jurisdiction to promote the convenience of
witnesses and the ends of justice, even when jurisdiction and venue
are authorized by the letter of a statute." Id. at syl. pt. 1.
This Court went on to state that:
The common law doctrine of forum non
conveniens is available to courts of record in
this State. The doctrine accords a preference
to the plaintiff's choice of forum, but the
defendant may overcome this preference by
demonstrating that the forum has only a slight
nexus to the subject matter of the suit and
that another available forum exists which
would enable the case to be tried
substantially more inexpensively and
expeditiously. To the extent that Gardner v.
Norfolk & Western Railway Co., [179] W. Va.
[724], 372 S.E.2d 786 (1988), cert. denied,
489 U.S. 1016, 109 S. Ct. 1132, 103 L. Ed. 2d
193, (1989), declined to apply this doctrine,
it is overruled.
Id. at syl. pt. 3.
This Court recognized that preference is given to the
plaintiff's choice of forum. Furthermore, the plaintiffs, in the
case before us, point out that this Court noted when discussing
Piper Aircraft Co. v. Reyno, 454 U.S. 235, 102 S. Ct. 252, 70 L.
Ed. 2d 419 (1981), that the Supreme Court of the United States
"acknowledged that customarily the plaintiff's choice of a forum
was entitled to great deference, but this preference may be
diminished when the plaintiff is a nonresident and the cause of action did not arise in the forum state." Tsapis, 184 W. Va. at
235, 400 S.E.2d at 243.
The plaintiffs argue that if deference is given to a
plaintiff's choice of forum and if less deference is given to a
foreign plaintiff's choice of forum, then logically the forum
should be presumed convenient when the defendant is a resident of
the forum state. In support of their argument, the plaintiffs
quote a portion of Restatement of Conflicts (Second) § 84 cmt. f
(1971) which outlines when the plaintiff's choice of forum is
presumed to be convenient:
f. Which forums will probably be
appropriate . . . . One of these is the state
where the occurrence took place . . . . A
second forum is the state of the defendant's
domicile or, in the case of a corporation, the
state of its incorporation or principal place
of business. These states will presumably be
convenient places for the defendant to stand
suit, and the defendant's relationship to them
makes it appropriate for their courts to hear
the case. A third forum is the state of the
plaintiff's domicile.
(emphasis added). Additionally, the plaintiffs point to Murdoch v.
A.P. Green Industries, Inc., 603 So. 2d 655 (Fla. Dist. Ct. App.
1992) which states that "[i]t is established Florida law that 'a
case may be dismissed from the Florida courts in favor of a more
convenient forum in another state only where none of the parties
involved in the suit are residents of this state.'" (citations
omitted).
However, as noted by the defendants, many courts
addressing this issue have declined to hold that the doctrine of
forum non conveniens is unavailable as a matter of law when the
defendant is a resident of the forum state. See Stangvik v.
Shiley, Inc., 819 P.2d 14 (Cal. 1991); Winsor v. United Air Lines,
Inc., 154 A.2d 561 (Del. Super. Ct. 1958); Russell v. Chrysler
Corp., 505 N.W.2d 263 (Mich. 1993); and Silver v. Great American
Insurance Co., 278 N.E.2d 619 (N.Y. 1972). A common rationale
given by these courts is that "[a] court should not decide that
there are circumstances in which the doctrine will always apply or
never apply." Stangvik, supra at 18-19. If there were rigid rules
about when the doctrine applied, it "would lose much of the very
flexibility that makes it so valuable." Piper Aircraft Co., 454
U.S. at 250, 102 S. Ct. at 263, 70 L. Ed. 2d at 432 (1981).
For instance, in Russell, supra, two cases were before
the Supreme Court of Michigan. In both cases the plaintiffs, who
were residents of Florida, were injured by cars in Florida, but
sued Chrysler Corporation, a Michigan corporation, in the State of
Michigan. In both cases, the lower courts declined to apply the
doctrine of forum non conveniens. One of the lower courts stated
that it refused to apply the doctrine of forum non conveniens
because the defendant, Chrysler Corporation, is a resident of
Michigan.
The Supreme Court of Michigan reversed the lower courts'
rulings and held that there is no case law in Michigan which
suggests that the doctrine is inapplicable when one of the parties
is a resident of the forum state. Id. The Supreme Court of
Michigan went on to list several factors which should be weighed
when determining whether the doctrine of forum non conveniens
applies. The focus of the case was on weighing the various factors
rather than on having absolute standards which determine when the
doctrine applies.
While this Court has not explicitly adopted a list of
factors to be considered, we did note that the Supreme Court of the
United States in Gulf Oil Corp. v. Gilbert, 330 U.S. 501, 67 S. Ct.
839, 91 L. Ed. 1055 (1947) outlined two interests which should be
weighed--the private interest in the efficient administration of
the court system and the public interest of the litigants:
'Included among the private interests of
the litigants are: the relative ease of
access to sources of proof; the availability
of compulsory process for the attendance of
unwilling witnesses and the cost of obtaining
the attendance of willing witnesses; the
possibility of a view of property, if such a
view would be appropriate in the action; the
enforcibility [sic] of any judgment; and all
other practical problems that make a trial of
a case easy, expeditious and inexpensive.
'The public interests include the
relative congestion of the respective courts'
dockets; the burden of imposing jury duty upon
the citizens of a community which has no or very little relation to the litigation; the
local interest in having localized
controversies decided at home; and the
advantages of conducting a trial in a forum
familiar with the applicable law and of
avoiding conflicts of law. Gilbert, 330 U.S.
at 508-09, 67 S. Ct. at 843, 91 L. Ed. at
1062-63.'
Tsapis, 184 W. Va. at 234-35, 400 S.E.2d at 242-43 (citation
omitted).
More importantly, this Court noted in Tsapis, 184 W. Va.
at 235, 400 S.E.2d at 243 that "[a] number of courts have
recognized general factors, similar to those set out in Gilbert, to
be considered in applying their forum non conveniens doctrine.
These courts accept that these considerations are not exhaustive
and that the doctrine must be applied flexibly and on a case-by-
case basis." Tsapis set out a workable framework for courts to
determine whether or not the doctrine of forum non conveniens
should be applied.
Accordingly, we hold that the framework to analyze
whether the common law doctrine of forum non conveniens is
applicable has been set forth in Norfolk and Western Ry. Co. v.
Tsapis, 184 W. Va. 231, 400 S.E.2d 239 (1990). This framework
ensures that the doctrine of forum non conveniens is applied
flexibly and on a case-by-case basis. A presumption that the forum
is convenient when a defendant is a resident of that forum would
undercut the flexibility of the doctrine.
III
The second issue is whether the trial court abused its
discretion by failing to give any deference to the plaintiffs'
choice of forum, and in dismissing the plaintiffs' actions based
upon the doctrine of forum non conveniens when the defendants
failed to demonstrate that these cases could be tried substantially
more expeditiously and inexpensively in another forum. For reasons
set forth below, we find that the trial court did abuse its
discretion.
At the outset, we point out that although Tsapis, supra,
provides a workable framework for courts to determine whether the
doctrine of forum non conveniens should be applied, the court's
analysis must be supported by a record. The trial court may not
rely on the mere allegations of the party who is seeking to have a
case dismissed on grounds of forum non conveniens that there is no
nexus between the forum and the plaintiff and that another forum
exists in which the case can be tried substantially more
expeditiously and inexpensively.
For instance, in Picketts v. International Playtex, Inc.,
576 A.2d 518 (Conn. 1990), the plaintiffs, who are Canadian
citizens, brought a product liability action against a Canadian
tampon manufacturer and its American parent corporation, which was
located in Connecticut. The action was brought in Connecticut for damages sustained when a woman (who was the wife and mother of the
plaintiffs) died in Canada allegedly of toxic shock syndrome. The
trial court dismissed the case on grounds of forum non conveniens.
The trial court found that the defendants would be at a
disadvantage in obtaining testimony on the decedent's medical
condition if the case were tried in Connecticut. Additionally, the
trial court found that choice of law principles favored the
alternative forum since Canadian law should apply to the case.
The Supreme Court of Connecticut reversed the trial
court. It noted that the dismissal was primarily based on access
to witnesses. The defendants had merely alleged that the
Connecticut forum was inconvenient and had not provided a list of
witnesses who would be unavailable. The Supreme Court of
Connecticut found that the trial court abused its discretion when
dismissing the case because "[t]he mere assertion that such
evidence is irretrievably located in Canada is, . . ., not adequate
to tip the scales in the defendants' favor on a motion to dismiss
for forum non conveniens." Id. at 528 (citation omitted and
emphasis added). See also Schoon v. Hill, 566 N.E.2d 718 (Ill.
App. Ct. 1990), cert. denied, 575 N.E.2d 923 (Ill. 1991) (the trial
court did not abuse its discretion when declining to dismiss a case
on grounds of forum non conveniens since the motion for dismissal failed to set out any facts to show that other forums would be more
convenient).
The Supreme Court of Connecticut points out that
"[e]mphasis on the trial court's discretion does not, . . .,
overshadow the central principle of the forum non conveniens
doctrine that 'unless the balance is strongly in favor of the
defendant, the plaintiff's choice of forum should rarely be
disturbed.' (Emphasis added.) Gulf Oil Corporation v. Gilbert,
supra[.]" Picketts, 576 A.2d at 524. The Supreme Court of
Connecticut went on to state that dismissing a case on the basis of
forum non conveniens is a drastic remedy which must be used with
caution and restraint. Id. However, in Picketts the Supreme Court
of Connecticut did find that the trial court abused its discretion
when it dismissed the case on grounds of forum non conveniens since
the record was not adequately developed to support the dismissal.
Likewise, we have held in syllabus point 5, in part, of
Garlow v. Zakaib, 186 W. Va. 457, 413 S.E.2d 112 (1991) that
this Court will not review a circuit court's
order disqualifying a lawyer unless the
circuit court's order is based upon an
adequately developed record. In the
alternative, if the circuit court's order
disqualifying a lawyer is based upon an
inadequately developed record, this Court,
under appropriate circumstances, may remand a
case to the circuit court for development of
an adequate record.
While not directly on point, Garlow does make it clear that this
Court must have a record in order to review the basis of a trial
court's decision. Accordingly, we hold that in order for this
Court to review a trial court's decision regarding the application
of the doctrine forum non conveniens, it is necessary for the trial
court to provide a record in sufficient detail which will show the
basis of its decision.
With this in mind, we will apply the framework set forth
in Tsapis, supra, to the case before us. As we stated in the
previous section, the common law doctrine of forum non conveniens
accords a preference to the plaintiff's choice of forum. Id. at
syl. pt. 3. However, the defendant can overcome this preference by
showing that the forum has only a slight nexus to the suit and that
another forum exists in which the suit can be tried substantially
more inexpensively and expeditiously. Id. The question before us
now is whether the defendants in the case before us overcome the
preference accorded to the plaintiffs' choice of forum.
The defendants point out that they can show that the
forum has only a slight nexus to the suit since the plaintiffs, who
were dismissed under the doctrine of forum non conveniens, were not
residents of West Virginia nor were they exposed to asbestos in
West Virginia. We agree that this is evidence that the forum may
only have a slight nexus with the suit. However, the fact that the defendants are residents of the forum adds balance to the scales.
Furthermore, the analysis does not stop at this point. The
defendants must also show that another forum exists in which the
suits can be tried substantially more inexpensively and
expeditiously. This offer of proof with a detailed showing of how
long it will take to get a jury trial in another forum, the
additional costs to the parties (including legal expenses in the
other forum), and other factual aspects that would show the
advantages of the alternative forum are requisites for a motion for
dismissal under the doctrine of forum non conveniens. We have
examined the record which is before us, and we find little proof to
support the trial court's conclusion that another forum exists in
which the cases can be tried substantially more inexpensively and
expeditiously.
For instance, the trial court stated in its order that
the cases would place an undue burden on the courts and citizens of
this State. However, the question under the framework established
in Tsapis, is not whether it is inconvenient for our courts, but
whether another forum exists in which the cases can be tried
substantially more inexpensively and expeditiously.
The defendants did submit to the circuit court a report
entitled "West Virginia Court System Annual Caseload Report for
Calendar Year 1991." However, no affidavits or reports were submitted which indicated that the caseloads of the Kentucky or
Ohio courts were less congested. The defendants did submit a court
order from a different case in which the Circuit Court of Cabell
County dismissed claims on grounds of forum non conveniens. In
that case the circuit court took judicial notice of the fact that
the caseload in Boyd, Kentucky was substantially less congested
than the caseload in Cabell County. However, without more
evidence, that case has no bearing on this case since the facts are
different and since the doctrine of forum non conveniens is to be
applied on a case-by-case basis.
Additionally, the trial court stated in its order that
the cases should be dismissed since it would be confusing to apply
the laws of various jurisdictions. However, "the mere fact that
the court is called upon to determine and apply foreign law does
not present a legal problem of the sort which would justify the
dismissal of a case otherwise properly before the court." Hoffman
v. Goberman, 420 F.2d 423, 427 (3d Cir. 1970) (footnote omitted).
The trial court did not mention whether there were
witnesses who would be unavailable to testify if the cases were to
remain in West Virginia.See footnote 1 In fact, the trial court did not provide any other reasons to support its decision. There is no evidence in
the record before us which indicates that the cases can be tried
substantially more inexpensively and expeditiously in another
forum. As we stated previously in this opinion, the doctrine of
forum non conveniens is a drastic remedy which should be used with
caution and restraint. Although we have not dictated a specific
list of factors which a trial court must consider, a trial court
should make findings of fact to support its decision to dismiss a
case on grounds of forum non conveniens. Mere allegations that a
case can be tried more conveniently in another forum are not
sufficient to dismiss a case on grounds of forum non conveniens.
The circuit court, in the case before us, abused its
discretion when it dismissed the cases on grounds of forum non
conveniens since the circuit court based its decision on mere
conclusions by the defendants. Accordingly, we reverse the circuit
court's order and remand the case to the circuit court to develop
a more detailed record.
IV
The last issue is whether the trial court erred by
dismissing the claims of West Virginia residents and nonresidents
against five defendants for lack of personal jurisdiction under W. Va. Code, 31-1-15 [1984] without determining whether the
defendants had sufficient minimum contacts with the State of West
Virginia to satisfy federal due process concerns. As we noted
earlier in this opinion, the circuit court concluded that it was
not necessary to determine whether the defendants had sufficient
minimum contacts with the State of West Virginia to satisfy federal
due process concerns since the plaintiffs could not satisfy the
requirements of W. Va. Code, 31-1-15 [1984].
The defendants point out that the Supreme Court of the
United States acknowledged the use of a two-step approach when
analyzing jurisdictional questions. World-Wide Volkswagen Corp. v.
Woodson, 444 U.S. 286, 290, 100 S. Ct. 559, 563, 62 L. Ed. 2d 490,
496-97 (1980). The first step involves determining whether the
defendant's actions satisfy a state's long-arm statute. The second
step involves determining whether the defendant's contacts with the
forum state satisfy federal due process.
The plaintiffs contend that in recent years the two-step
analysis has been merged into one so that jurisdiction may be
asserted over individuals if the assertion of jurisdiction comports
with federal due process concerns. The plaintiffs point to
syllabus point 2 of Hill by Hill v. Showa Denko, K.K., 188 W. Va.
654, 425 S.E.2d 609 (1992), cert. denied, ___ U.S. ___, 113 S. Ct.
2338, 124 L. Ed. 2d 249 (1993), in support of their argument:
Personal jurisdiction 'premised on the
placement of a product into the stream of
commerce is consistent with the Due Process
Clause' and can be exercised without the need
to show additional conduct by the defendant
aimed at the forum state. Asahi Metal
Industry Co. v. Superior Court of California,
480 U.S. 102, 117, 107 S.Ct. 1026, 1034, 94
L.Ed.2d 92 (1987).
However, a careful reading of Showa Denko reveals that
this Court did apply the two-step analysis which was acknowledged
in World-Wide Volkswagen Corp., supra. This Court discussed West
Virginia's personal jurisdiction statutes set forth in W. Va. Code,
31-1-15 [1984] and W. Va. Code, 56-3-33 [1984], and concluded that
the facts in Showa Denko conferred jurisdiction under our personal
jurisdiction statutes. This Court also concluded in Showa Denko
that this extension of personal jurisdiction did not violate
federal due process. Syllabus point 2 of Showa Denko merely
provides parameters for determining whether the application of
jurisdiction under our long-arm statutes comports with federal due
process. Furthermore, if we declined to follow the two-step
approach our long-arm statutes would become meaningless. Common
sense dictates that we find that a two-step process must be used
when analyzing whether personal jurisdiction exists.See footnote 2
Accordingly, we hold that a court must use a two-step
approach when analyzing whether personal jurisdiction exists over
a foreign corporation or other nonresident. The first step
involves determining whether the defendant's actions satisfy our
personal jurisdiction statutes set forth in W. Va. Code, 31-1-15
[1984] and W. Va. Code, 56-3-33 [1984]. The second step involves
determining whether the defendant's contacts with the forum state
satisfy federal due process. Therefore, we will analyze the case
before us using the two-step analysis.See footnote 3
In the case before us, it is apparent that the circuit
court failed to complete the first step of analysis. In West
Virginia we have two statutes which outline when in personam
jurisdiction can be obtained. The circuit court, in the case
before us, only addressed one of these statutes.
The primary long-arm statute is W. Va. Code, 56-3-33(a)
[1984] which confers in personam jurisdiction on a nonresidentSee footnote 4 if
the nonresident engages in one of the acts specified below:
(1) Transacting any business in this
State;
(2) Contracting to supply services or
things in this State;
(3) Causing tortious injury by an act or
omission in this State;
(4) Causing tortious injury in this State
by an act or omission outside this State if he
regularly does or solicits business, or
engages in any other persistent course of
conduct, or derives substantial revenue from
goods used or consumed or services rendered in
this State;
(5) Causing injury in this State to any
person by breach of warranty expressly or
impliedly made in the sale of goods outside
this State when he might reasonably have
expected such person to use, consume or be
affected by the goods in this State:
Provided, That he also regularly does or
solicits business, or engages in any other
persistent course of conduct, or derives
substantial revenue from goods used or
consumed or services rendered in this State;
(6) Having an interest in, using or
possessing real property in this State; or
(7) Contracting to insure any person,
property or risk located within this State at
the time of contracting.
The second statute is W. Va. Code, 31-1-15 [1984], in relevant
part, which defines when a corporation is doing business in this
State so that in personam jurisdiction may be obtained over the
corporation:
For the purpose of this section, a
foreign corporation not authorized to conduct
affairs or do or transact business in this
State pursuant to the provisions of this
article shall nevertheless be deemed to be conducting affairs or doing or transacting
business herein (a) if such corporation makes
a contract to be performed, in whole or in
part, by any party thereto, in this State, (b)
if such corporation commits a tort in whole or
in part in this State, or (c) if such
corporation manufactures, sells, offers for
sale or supplies any product in a defective
condition and such product causes injury to
any person or property within this State
notwithstanding the fact that such corporation
had no agents, servants or employees or
contacts within this State at the time of said
injury.
Obviously, W. Va. Code, 31-1-15 [1984] is a narrow
statute pertaining only to corporations since chapter 31 of the
West Virginia Code is known as the West Virginia Corporation Act.
See W. Va. Code, 31-1-1 [1974]. W. Va. Code, 31-1-15 [1984] is
merely an elaboration on the transacting business provision of W.
Va. Code, 56-3-33(a) [1984]. More importantly, W. Va. Code, 31-1-
15 [1984] is not the exclusive test for when in personam
jurisdiction may be obtained over a corporation. W. Va. Code, 56-
3-33 [1984] must also be considered.
In the case before us, the circuit court failed to
consider whether or not in personam jurisdiction could be obtained
over the five defendants under W. Va. Code, 56-3-33 [1984].
Furthermore, the record before us fails to indicate whether or not
the five defendants have engaged in one of the acts specified in
subsections (1) through (7) of W. Va. Code, 56-3-33(a) [1984].
Since the circuit court failed to properly determine whether the defendants' actions satisfy our long-arm statutes, we do not reach
the second step of the analysis: whether the defendants' contacts
to the forum state satisfy federal due process concerns.
Accordingly, we remand the case to the circuit court to
consider whether or not the defendants have engaged in one of the
acts specified in subsections (1) through (7) of W. Va. Code, 56-3-
33(a) [1984].
V
In conclusion, we reverse the orders of the circuit court
and remand this case to the circuit court so that further evidence
may be developed in order to determine whether the cases involving
the nonresident plaintiffs who were exposed to asbestos outside of
West Virginia should be dismissed on the grounds of forum non
conveniens. Additionally, further evidence needs to be developed
in order to determine whether the five defendants were engaging in
one of the activities listed in subsections (1) through (7) of
W. Va. Code, 56-3-33(a) [1984] so as to confer in personam
jurisdiction on them.
Reversed and remanded.
Footnote: 1
Defendant, Fibreboard, stated in its "Motion to Dismiss
the Claims of Certain Plaintiffs based on Forum Non Conveniens"
memorandum of law which was submitted to the circuit court that
"[a]t this point in the litigation, neither plaintiffs nor defendants can identify with precision the residences of all their
witnesses."
Footnote: 2 In syllabus point 2 of State ex rel. CSR Limited v.
MacQueen, No. 21994, ___ W. Va. ___, ___ S.E.2d ___ (filed February
17, 1994), we held:
In determining whether our courts have
jurisdiction under the stream of commerce
theory articulated in Asahi Metal Industry Co.
v. Superior Court of California, 480 U.S. 102
(1987), the rule in West Virginia will always
be congruent with the outer edge of the due
process envelope that, as determined by the
Supreme Court of the United States,
circumscribes jurisdiction.
However, in that case CSR Limited conceded that the long-arm
statutes conferred jurisdiction by not raising the issue.
Therefore, this Court did not analyze whether the evidence
supported personal jurisdiction under our long-arm statutes.
Instead, we analyzed whether the extension of jurisdiction in that
particular case comported with federal due process. Like syllabus
point 2 of Showa Denko, syllabus point 2 of CSR Limited provides
parameters for determining when the extension of jurisdiction under
our long-arm statues comports with federal due process.
Footnote: 3 We have previously recognized that a two-step analysis
must be made when determining whether personal jurisdiction should
be extended. For instance, we noted in Kidwell v. Westinghouse
Electric Co., 178 W. Va. 161, 162, 358 S.E.2d 420, 421 (1986) that
"our 'long-arm' statute, must be read in conjunction with the
constitutional due process concept that a foreign corporation must
have certain 'minimum contacts' before it is amenable to personal
jurisdiction in our courts." Additionally, the United States
District Court for the Northern District of West Virginia noted
that "[i]n analyzing whether the Court has personal jurisdiction
. . . the first determination is whether West Virginia state law
authorizes jurisdiction. The second consideration is if West
Virginia law authorizes jurisdiction, whether it comports with
constitutional due process requirements." Hinzman v. Superior
Toyota, Inc., 660 F. Supp. 401, 402 (N.D. W. Va. 1987) (citation
omitted). Our holding today is consistent with previous decisions.
Footnote: 4 W. Va. Code, 56-3-31(h)(3) [1990] defines nonresident:
'Nonresident' means any person who is not
a resident of this state or a resident who has
moved from the state subsequent to an accident
or collision, and among others includes a
nonresident firm, partnership, corporation or
voluntary association, or a firm, partnership,
corporation or voluntary association that has
moved from the state subsequent to an accident
or collision.