Monday, February 16, 2009

More Long-Arm Statutes

Every state has long-arm statutes, which define when the state can assert jurisdiction over non-residents. States with aggressive long-arm statutes can assert jurisdiction as soon as the non-resident makes minimum contact. This is a one-step process.

States with less aggressive long-arm statutes use a two-step process. The first step is to determine whether the non-resident established minimum contact. The second step involves determining if a certain minimum criteria is met. Let's look at a hypothetical example of this minimum criteria:

A resident files suit against an out-of-state insurance company for failure to pay a claim. The state throws out the case, because the claim is only for $100. The state's long-arm statutes specify that insurance claims must exceed $5000 before the state will seek to assert jurisdiction.

summarized from Life of a Law Student

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