Insurance Corporation of Ireland, Ltd. v. Compagnie des Bauxites de Guinee (1982)

a.       Facts- Π is a mining company (Penn.), and Δ is an insurance company (Europe). Π bought a policy from Δ for “business interruption” insurance. When mechanical problems prevented Π from doing business, they filed an insurance claim with Δ, at which time Δ did NOT pay. Π then sued Δ for non-payment in a Penn. Ct. Δ raised a defense for lack of Jx and sought summary judgment. In responding to Δ’s defense, Π asked for all of Δ’s insurance policies in Penn. Δ only made these documents available in London, but the Ct said that the documents must be in Penn. When Δ refused, the Ct sanctioned Δ under FRCP 37. On appeal, Δ argued that the Ct had no Jx over them, and therefore cannot sanction them.

b.      Procedural History- Δ appeals injunction, Sup Ct affirms

c.       Issue- Whether it was proper to sanction Δ under FRCP 37

d.      Holding- Yes, it was proper for the Ct to sanction Δ under FRCP 37. The Ct did NOT abuse its discretion by sanctioning Δ. The sanction (punishment) is that the Δ was subject to PJx

e.       Rule-

                                                              i.      Sanction of taking certain facts as established may be applied to support a finding of personal jurisdiction over the defendant without violating the due process clause.

                                                            ii.      If not timely raised, a defense of “lack of Jx” is waived

f.       Rationale-

                                                              i.      By allowing the Ct to address the issue of “personal Jx”, the Δ agrees to abide by the determination of the Ct regarding personal Jx.

                                                            ii.      If you waive your right to contest PJx, you can NEVER contest it again

g.      Notes-

                                                              i.      If a Δ does NOT contest Jx, they have waived their right to contest Jx:

1.      To contest Jx, Δ can file a motion to dismiss for lack of PJx (Rule 12(b)(2))

2.       Or, contest PJx in the Answer (pleading)

                                                            ii.      Adhesion contracts: take it or leave it

                                                          iii.      A “forum selection” clause in a contract, is valid, even in an adhesion contract