NOTICE: This opinion is subject to
formal revision before publication in the preliminary print of the
United States Reports. Readers are requested to notify the Reporter
of Decisions, Supreme Court of the United States, Washington,
D. C. 20543, of any typographical or other formal errors, in
order that corrections may be made before the preliminary print
goes to press.
SUPREME COURT OF THE UNITED STATES
_________________
No. 16–466
_________________
BRISTOL-MYERS SQUIBB COMPANY, PETITIONER
v.SUPERIOR COURT OF CALIFORNIA, SAN FRANCISCO COUNTY,
et al.
on writ of certiorari to the supreme court of
california
[June 19, 2017]
Justice Alito delivered the opinion of the
Court.
More than 600 plaintiffs, most of whom are not
California residents, filed this civil action in a California state
court against Bristol-Myers Squibb Company (BMS), asserting a
variety of state-law claims based on injuries allegedly caused by a
BMS drug called Plavix. The California Supreme Court held that the
California courts have specific jurisdiction to entertain the
nonresidents’ claims. We now reverse.
I
A
BMS, a large pharmaceutical company, is
incorporated in Delaware and headquartered in New York, and it
maintains substantial operations in both New York and New Jersey. 1
Cal. 5th 783, 790, 377 P. 3d 874, 879 (2016). Over 50
percent of BMS’s work force in the United States is employed in
those two States.
Ibid.
BMS also engages in business activities in other
jurisdictions, including California. Five of the company’s research
and laboratory facilities, which employ a total of around 160
employees, are located there.
Ibid. BMS also employs about
250 sales representatives in California and maintains a small
state-government advocacy office in Sacramento.
Ibid.
One of the pharmaceuticals that BMS manufactures
and sells is Plavix, a prescription drug that thins the blood and
inhibits blood clotting. BMS did not develop Plavix in California,
did not create a marketing strategy for Plavix in California, and
did not manufacture, label, package, or work on the regulatory
approval of the product in California.
Ibid. BMS instead
engaged in all of these activities in either New York or New
Jersey.
Ibid. But BMS does sell Plavix in California.
Between 2006 and 2012, it sold almost 187 million Plavix pills in
the State and took in more than $900 million from those sales. 1
Cal. 5th, at 790–791, 377 P. 3d, at 879. This amounts to
a little over one percent of the company’s nationwide sales
revenue.
Id., at 790, 377 P. 3d, at 879.
B
A group of plaintiffs—consisting of 86
California residents and 592 residents from 33 other States—filed
eight separate complaints in California Superior Court, alleging
that Plavix had damaged their health.
Id., at 789, 377
P. 3d, at 878. All the complaints asserted 13 claims under
California law, including products liability, negligent
misrepresentation, and misleading advertising claims.
Ibid.
The nonresident plaintiffs did not allege that they obtained Plavix
through California physicians or from any other California source;
nor did they claim that they were injured by Plavix or were treated
for their injuries in California.
Asserting lack of personal jurisdiction, BMS
moved to quash service of summons on the nonresidents’ claims, but
the California Superior Court denied this motion, finding that the
California courts had general jurisdiction over BMS “[b]ecause [it]
engages in extensive activities in California.” App. to Pet. for
Cert. 150. BMS unsuccess-fully petitioned the State Court of Appeal
for a writ of mandate, but after our decision on general
jurisdiction in
Daimler AG v.
Bauman, 571 U. S.
___ (2014), the California Supreme Court instructed the Court of
Appeal “to vacate its order denying mandate and to issue an order
to show cause why relief sought in the petition should not be
granted.” App. 9–10.
The Court of Appeal then changed its decision on
the question of general jurisdiction. 228 Cal. App. 4th
605, 175 Cal. Rptr. 3d 412 (2014). Under
Daimler,
it held, general jurisdiction was clearly lacking, but it went on
to find that the California courts had specific jurisdiction over
the nonresidents’ claims against BMS. 228 Cal. App. 4th 605,
175 Cal. Rptr. 3d, at 425–439.
The California Supreme Court affirmed. The court
unanimously agreed with the Court of Appeal on the issue of general
jurisdiction, but the court was divided on the question of specific
jurisdiction. The majority applied a “sliding scale approach to
specific jurisdiction.” 1 Cal. 5th, at 806, 377 P. 3d, at 889.
Under this approach, “the more wide ranging the defendant’s forum
contacts, the more readily is shown a connection between the forum
contacts and the claim.”
Ibid. (internal quotation marks
omitted). Applying this test, the majority concluded that “BMS’s
extensive contacts with California” permitted the exercise of
specific jurisdiction “based on a less direct connection between
BMS’s forum activities and plaintiffs’ claims than might otherwise
be required.”
Ibid. This attenuated requirement was met, the
majority found, because the claims of the nonresidents were similar
in several ways to the claims of the California residents (as to
which specific jurisdiction was uncontested).
Id., at
803–806, 377 P. 3d, at 887–889. The court noted that “[b]oth the
resident and nonresident plaintiffs’ claims are based on the same
allegedly defective product and the assertedly misleading marketing
and promotion of that product.”
Id., at 804, 377 P. 3d, at
888. And while acknowledging that “there is no claim that Plavix
itself was designed and developed in [BMS’s California research
facilities],” the court thought it significant that other research
was done in the State.
Ibid.
Three justices dissented. “The claims of
. . . nonresidents injured by their use of Plavix they
purchased and used in other states,” they wrote, “in no sense arise
from BMS’s marketing and sales of Plavix in California,” and they
found that the “mere similarity” of the residents’ and
nonresidents’ claims was not enough.
Id., at 819, 377
P. 3d, at 898 (opinion of Werdegar, J.). The dissent accused
the majority of “expand[ing] specific jurisdiction to the point
that, for a large category of defendants, it becomes
indistinguishable from general jurisdiction.”
Id., at 816,
377 P. 3d, at 896.
We granted certiorari to decide whether the
California courts’ exercise of jurisdiction in this case violates
the Due Process Clause of the Fourteenth Amendment. 580 U. S.
___ (2017).[
1]
II
A
It has long been established that the
Fourteenth Amendment limits the personal jurisdiction of state
courts. See,
e.g.,
Daimler,
supra, at ___–___
(slip op., at 6–13);
World-Wide Volkswagen Corp. v.
Woodson, 444 U. S. 286, 291 (1980) ;
International
Shoe Co. v.
Washington, 326 U. S. 310 –317 (1945);
Pennoyer v.
Neff, 95 U. S. 714, 733 (1878).
Because “[a] state court’s assertion of jurisdiction exposes
defendants to the State’s coercive power,” it is “subject to review
for compatibility with the Fourteenth Amendment’s Due Process
Clause,”
Goodyear Dunlop Tires Operations, S. A. v.
Brown, 564 U. S. 915, 918 (2011) , which “limits the
power of a state court to render a valid personal judgment against
a nonresident defendant,”
World-Wide Volkswagen,
supra, at 291. The primary focus of our personal
jurisdiction inquiry is the defendant’s relationship to the forum
State. See
Walden v.
Fiore, 571 U. S. ___,
___–___ (2014) (slip op., at 5–8);
Phillips Petroleum Co. v.
Shutts, 472 U. S. 797 –807 (1985).
Since our seminal decision in
International
Shoe, our decisions have recognized two types of personal
jurisdiction: “general” (sometimes called “all-purpose”)
jurisdiction and “specific” (sometimes called “case-linked”)
jurisdiction.
Goodyear, 564 U. S., at 919. “For an
individual, the paradigm forum for the exercise of general
jurisdiction is the individual’s domicile; for a corporation, it is
an equivalent place, one in which the corporation is fairly
regarded as at home.”
Id., at 924. A court with general
jurisdiction may hear
any claim against that defendant, even
if all the incidents underlying the claim occurred in a different
State.
Id., at 919. But “only a limited set of affiliations
with a forum will render a defendant amenable to” general
jurisdiction in that State.
Daimler, 571 U. S., at ___
(slip op., at 18).
Specific jurisdiction is very different. In
order for a state court to exercise specific jurisdiction, “the
suit” must “aris[e] out of or relat[e] to the defendant’s
contacts with the
forum.”
Id., at ___ (slip op., at
8) (internal quotation marks omitted; emphasis added); see
Burger King Corp. v.
Rudzewicz, 471 U. S. 462
–473 (1985);
Helicopteros Nacionales de Colombia, S. A.
v.
Hall, 466 U. S. 408, 414 (1984) . In other words,
there must be “an affiliation between the forum and the underlying
controversy, principally, [an] activity or an occurrence that takes
place in the forum State and is therefore subject to the State’s
regulation.”
Goodyear, 564 U. S., at 919 (internal
quotation marks and brackets omitted). For this reason, “specific
jurisdiction is confined to adjudication of issues deriv-ing from,
or connected with, the very controversy that establishes
jurisdiction.”
Ibid. (internal quotation marks omitted).
B
In determining whether personal jurisdiction
is present, a court must consider a variety of interests. These
include “the interests of the forum State and of the plaintiff in
proceeding with the cause in the plaintiff’s forum of choice.”
Kulko v.
Superior Court of Cal., City and County of San
Francisco, 436 U. S. 84, 92 (1978) ; see
Daimler,
supra, at ___–___, n. 20 (slip op., at 21–22, n. 20);
Asahi Metal Industry Co. v.
Superior Court of Cal.,
Solano Cty., 480 U. S. 102, 113 (1987) ;
World-Wide
Volkswagen, 444 U. S., at 292. But the “primary concern”
is “the burden on the defendant.”
Id., at 292. Assessing
this burden obviously requires a court to consider the practical
problems resulting from litigating in the forum, but it also
encompasses the more abstract matter of submitting to the coercive
power of a State that may have little legitimate interest in the
claims in question. As we have put it, restrictions on personal
jurisdiction “are more than a guarantee of immunity from
inconvenient or distant litigation. They are a consequence of
territorial limitations on the power of the respective States.”
Hanson v.
Denckla, 357 U. S. 235, 251 (1958) .
“[T]he States retain many essential attributes of sovereignty,
including, in particular, the sovereign power to try causes in
their courts. The sovereignty of each State . . .
implie[s] a limitation on the sovereignty of all its sister
States.”
World-Wide Volkswagen, 444 U. S., at 293. And
at times, this federalism interest may be decisive. As we explained
in
World-Wide Volkswagen, “[e]ven if the defendant would
suffer minimal or no inconvenience from being forced to litigate
before the tribunals of another State; even if the forum State has
a strong interest in applying its law to the controversy; even if
the forum State is the most convenient location for litigation, the
Due Process Clause, acting as an instrument of interstate
federalism, may sometimes act to divest the State of its power to
render a valid judgment.”
Id., at 294.
III
A
Our settled principles regarding specific
jurisdiction control this case. In order for a court to exercise
specific jurisdiction over a claim, there must be an “affiliation
between the forum and the underlying controversy, principally, [an]
activity or an occurrence that takes place in the forum State.”
Goodyear, 564 U. S., at 919 (internal quotation marks
and brackets in original omitted). When there is no such
connection, specific jurisdiction is lacking regardless of the
extent of a defendant’s unconnected activities in the State. See
id., at 931, n. 6 (“[E]ven regularly occurring sales of
a product in a State do not justify the exercise of jurisdiction
over a claim unrelated to those sales”).
For this reason, the California Supreme Court’s
“sliding scale approach” is difficult to square with our
precedents. Under the California approach, the strength of the
requisite connection between the forum and the specific claims at
issue is relaxed if the defendant has extensive forum contacts that
are unrelated to those claims. Our cases provide no support for
this approach, which resembles a loose and spurious form of general
jurisdiction. For spe-cific jurisdiction, a defendant’s general
connections with the forum are not enough. As we have said, “[a]
corporation’s ‘continuous activity of some sorts within a state
. . . is not enough to support the demand that the
corporation be amenable to suits unrelated to that
activity.’ ”
Id., at 927 (quoting
International
Shoe, 326 U. S., at 318).
The present case illustrates the danger of the
California approach. The State Supreme Court found that specific
jurisdiction was present without identifying any adequate link
between the State and the nonresidents’ claims. As noted, the
nonresidents were not prescribed Plavix in California, did not
purchase Plavix in California, did not ingest Plavix in California,
and were not injured by Plavix in California. The mere fact that
other plaintiffs were prescribed, obtained, and ingested
Plavix in California—and allegedly sustained the same injuries as
did the nonresidents—does not allow the State to assert specific
jurisdiction over the nonresidents’ claims. As we have explained,
“a defendant’s relationship with a . . . third party,
standing alone, is an insufficient basis for jurisdiction.”
Walden, 571 U. S., at ___ (slip op., at 8). This
remains true even when third parties (here, the plaintiffs who
reside in California) can bring claims similar to those brought by
the nonresidents. Nor is it sufficient—or even relevant—that BMS
conducted research in California on matters unrelated to Plavix.
What is needed—and what is missing here—is a connection between the
forum and the specific claims at issue.
Our decision in
Walden,
supra,
illustrates this requirement. In that case, Nevada plaintiffs sued
an out-of-state defendant for conducting an allegedly unlawful
search of the plaintiffs while they were in Georgia preparing to
board a plane bound for Nevada. We held that the Nevada courts
lacked specific jurisdiction even though the plaintiffs were Nevada
residents and “suffered foreseeable harm in Nevada.”
Id., at
___ (slip op., at 11). Because the “
relevant conduct
occurred entirely in Georgi[a] . . . the mere fact that
[this] conduct affected plaintiffs with connections to the forum
State d[id] not suffice to authorize jurisdiction.”
Id., at
___ (slip op., at 14) (emphasis added).
In today’s case, the connection between the
nonresidents’ claims and the forum is even weaker. The relevant
plaintiffs are not California residents and do not claim to have
suffered harm in that State. In addition, as in
Walden, all
the conduct giving rise to the nonresidents’ claims occurred
elsewhere. It follows that the California courts cannot claim
specific jurisdiction. See
World-Wide Volkswagen,
supra, at 295 (finding no personal jurisdiction in Oklahoma
because the defendant “carr[ied] on no activ-ity whatsoever in
Oklahoma” and dismissing “the fortuitous circumstance that a single
Audi automobile, sold [by defendants] in New York to New York
residents, happened to suffer an accident while passing through
Oklahoma” as an “isolated occurrence”).
B
The nonresidents maintain that two of our
cases sup-port the decision below, but they misinterpret those
precedents.
In
Keeton v.
Hustler Magazine,
Inc., 465 U. S. 770 (1984) , a New York resident sued
Hustler in New Hampshire, claiming that she had been libeled in
five issues of the magazine, which was distributed throughout the
country, including in New Hampshire, where it sold 10,000 to 15,000
copies per month. Concluding that specific jurisdiction was
present, we relied principally on the connection between the
circulation of the magazine in New Hampshire and damage allegedly
caused within the State. We noted that “[f]alse statements of fact
harm both the subject of the falsehood and the readers of the
statement.”
Id., at 776 (emphasis deleted). This factor
amply distinguishes
Keeton from the present case, for here
the nonresidents’ claims involve no harm in California and no harm
to California residents.
The nonresident plaintiffs in this case point to
our holding in
Keeton that there was jurisdiction in New
Hampshire to entertain the plaintiff’s request for damages suffered
outside the State,
id., at 774, but that holding concerned
jurisdiction to determine
the scope of a claim involving
in-state injury and injury to residents of the State, not, as in
this case, jurisdiction to entertain claims involving no in-state
injury and no injury to residents of the forum State.
Keeton
held that there was jurisdiction in New Hampshire to consider the
full measure of the plaintiff’s claim, but whether she could
actually recover out-of-state damages was a merits question
governed by New Hampshire libel law.
Id., at 778, n. 9.
The Court’s decision in
Phillips Petroleum
Co. v.
Shutts, 472 U. S. 797 (1985) , which
involved a class action filed in Kansas, is even less relevant. The
Kansas court exercised personal jurisdiction over the claims of
nonresident class members, and the defendant, Phillips Petroleum,
argued that this violated the due process rights of these class
members because they lacked minimum contacts with the
State.[
2] According to the
defendant, the out-of-state class members should not have been kept
in the case unless they affirmatively opted in, instead of merely
failing to opt out after receiving notice.
Id., at 812.
Holding that there had been no due process
violation, the Court explained that the authority of a State to
entertain the claims of nonresident class members is entirely
different from its authority to exercise jurisdiction over an
out-of-state defendant.
Id., at 808–812. Since
Shutts
concerned the due process rights of
plaintiffs, it has no
bearing on the question presented here.
Respondents nevertheless contend that
Shutts supports their position because, in their words, it
would be “absurd to believe that [this Court] would have reached
the exact opposite result if the petitioner [Phillips] had only
invoked its own due-process rights, rather than those of the
non-resident plaintiffs.” Brief for Respondents 28–29, n. 6
(emphasis deleted). But the fact remains that Phillips did not
assert that Kansas improperly exercised personal jurisdiction over
it, and the Court did not address that issue.[
3] Indeed, the Court stated specifically that its
“discussion of personal jurisdiction [did not] address class
actions where the jurisdiction is asserted against a
defendant class.
” Shutts,
supra, at 812,
n. 3.
C
In a last ditch contention, respondents
contend that BMS’s “decision to contract with a California company
[McKesson] to distribute [Plavix] nationally” provides a sufficient
basis for personal jurisdiction. Tr. of Oral Arg. 32. But as we
have explained, “[t]he requirements of
International Shoe
. . . must be met as to each defendant over whom a state
court exercises jurisdiction.”
Rush v.
Savchuk, 444
U. S. 320, 332 (1980) ; see
Walden, 571 U. S., at
___ (slip op, at 8) (“[A] defendant’s relationship with a
. . . third party, standing alone, is an insufficient
basis for jurisdiction”). In this case, it is not alleged that BMS
engaged in relevant acts together with McKesson in California. Nor
is it alleged that BMS is derivatively liable for McKesson’s
conduct in California. And the nonresidents “have adduced no
evidence to show how or by whom the Plavix they took was
distributed to the pharmacies that dispensed it to them.” 1 Cal.
5th, at 815, 377 P. 3d, at 895 (Werdegar, J., dissenting) (emphasis
deleted). See Tr. of Oral Arg. 33 (“It is impossible to trace a
particular pill to a particular person . . . . It’s
not possible for us to track particularly to McKesson”). The bare
fact that BMS contracted with a California distributor is not
enough to establish personal jurisdiction in the State.
IV
Our straightforward application in this case
of settled principles of personal jurisdiction will not result in
the parade of horribles that respondents conjure up. See Brief for
Respondents 38–47. Our decision does not prevent the California and
out-of-state plaintiffs from joining together in a consolidated
action in the States that have general jurisdiction over BMS. BMS
concedes that such suits could be brought in either New York or
Delaware. See Brief for Petitioner 13. Alternatively, the
plaintiffs who are residents of a particular State—for example, the
92 plaintiffs from Texas and the 71 from Ohio—could probably sue
together in their home States. In addition, since our decision
concerns the due process limits on the exercise of specific
jurisdiction by a State, we leave open the question whether the
Fifth Amendment imposes the same restrictions on the exercise of
personal jurisdiction by a federal court. See
Omni Capital
Int’l, Ltd. v.
Rudolf Wolff & Co., 484 U. S. 97
, n. 5 (1987).
* * *
The judgment of the California Supreme Court
is reversed, and the case is remanded for further proceedings not
inconsistent with this opinion.
It is so ordered.