Northern Grain Marketing, LLC v. Marvin Greving , 743 F.3d 487 ( 2014 )


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  •                                 In the
    United States Court of Appeals
    For the Seventh Circuit
    No. 12-2653
    NORTHERN GRAIN MARKETING , LLC,
    Plaintiff-Appellant,
    v.
    MARVIN GREVING ,
    Defendant-Appellee.
    Appeal from the United States District Court
    for the Northern District of Illinois, Western Division.
    No. 3:12-cv-50067 — Philip G. Reinhard, Judge.
    ARGUED JUNE 4, 2013 — DECIDED FEBRUARY 18, 2014
    Before FLAUM , SYKES, and HAMILTON , Circuit Judges.
    SYKES, Circuit Judge. Marvin Greving has lived and farmed
    in southeastern Wisconsin since April 1971. In 2003 he began
    contracting to sell his grain to Northern Grain Marketing, LLC,
    an Illinois-based grain buyer. Northern Grain claims that
    Greving repudiated several contracts formed years after the
    parties first began contracting and seeks almost $1 million in
    2                                                     No. 12-2653
    damages from him. When Greving refused to arbitrate the
    dispute, Northern Grain filed this action in the district court in
    Rockford, Illinois, seeking an order compelling arbitration.
    Greving moved to dismiss for lack of personal jurisdiction. The
    court granted that motion and Northern Grain took this
    appeal.
    We affirm. Greving lacks minimum contacts with Illinois
    that would permit the district court, consistent with the due-
    process clause of the Fourteenth Amendment, to exercise
    specific personal jurisdiction over him. As relevant to this
    dispute, Greving only set foot in Illinois once—to attend a
    seed-corn meeting in Rochelle in early 2003, several months
    before the parties entered into the first of their grain contracts.
    It was there that he met Tom Wilson, who became his point of
    contact with Northern Grain. But even assuming that
    Greving’s attendance at this seed-corn meeting enters the
    personal-jurisdiction calculus for the later-formed contracts at
    issue here, there is no indication in the record that Greving
    attended the meeting in an effort to find grain buyers. And
    virtually everything else about Greving’s contractual relation-
    ship with Northern Grain was based in Wisconsin. When
    Greving met with Wilson, they met either at his Wisconsin
    farm or at a Denny’s restaurant in Delavan, Wisconsin.
    Greving delivered his Wisconsin-grown grain to a grain
    elevator in Wisconsin. Of course, the checks he received from
    Northern Grain were drawn on Illinois banks, but that does not
    show that he purposefully availed himself of the privilege of
    conducting business in Illinois. So although it may seem
    convenient as a practical matter for Greving to defend this suit
    in Rockford, the Constitution doesn’t permit the Illinois
    No. 12-2653                                                          3
    courts—and, thus, federal district courts in Illinois—to exercise
    jurisdiction over him.
    I. Background
    Marvin Greving is a longtime Wisconsinite. Although he
    graduated from high school in Iowa and attended college in
    New York, he has lived and farmed in Walworth County, in
    rural southeastern Wisconsin, since April 1971, and has owned
    his own farm in Elkhorn since 1977. He and his wife conduct
    their personal and business activities in Wisconsin, and their
    children attended Wisconsin schools. Greving has a Wisconsin
    driver’s license, Wisconsin insurance, and pays taxes into the
    Wisconsin treasury. He purchases his seed, fertilizer, pesti-
    cides, and other farm equipment from Wisconsin vendors.
    In 2003 Greving traveled some 70 miles from his farm to
    attend a seed-corn meeting held at an insurance agency in
    Rochelle, Illinois. This was essentially a trade show sponsored
    by a seed company at which farmers could learn more about
    the latest technology in seed corn. While there, Greving met
    Wilson, a grain originator for Northern Grain.1 Northern Grain
    is a limited-liability company organized under Delaware law
    but located in Harmon, Illinois. It buys and markets grain, and
    Wilson’s job duties included contracting with farmers for the
    purchase of grain. While it appears that Wilson attended the
    seed-corn meeting for the purpose of making contacts with
    1
    Actually, Wilson was a grain originator at Harmon Grain, LLC, Northern
    Grain’s predecessor entity.
    4                                                    No. 12-2653
    farmers like Greving, there is no indication that Greving
    attended the meeting with an eye toward marketing his own
    grain to buyers.
    Wilson’s efforts paid off. He and Greving kept in touch by
    phone after the meeting, and eventually Greving agreed to sell
    grain to Northern Grain. At the time of initial contracting,
    Greving knew that Northern Grain was located in Illinois.
    Greving and Northern Grain, via Wilson, entered into a series
    of similar contracts over the course of the next nine years or so.
    When Greving and Wilson met, they did so at a Denny’s
    restaurant in Delavan, Wisconsin, or at Greving’s farm. The
    typical contracting process involved an oral agreement
    followed by a written confirmation. Northern Grain would pay
    Greving by checks drawn on Illinois banks. Pursuant to the
    terms of the contracts, Greving produced the grain and
    delivered it to one of several Wisconsin grain elevators.
    Northern Grain alleges that Greving repudiated several
    oral contracts providing for the delivery of grain between
    December 2010 and December 2012. Greving denies ever
    having entered into these contracts and claims that he had to
    continuously fend off Wilson’s efforts to get him to sign
    documents purporting to be written confirmations of these
    contracts. He claims that these alleged contracts involved
    quantities of grain greater than his farm had ever produced in
    a given year and that he resisted Wilson’s efforts to get him to
    sign the documents despite assurances that Northern Grain
    would work with him in meeting the quantities and Wilson’s
    protestation that he could get fired if Greving didn’t sign.
    Greving did not sign any of the documents.
    No. 12-2653                                                     5
    Each of the unsigned documents contains fine-print
    provisions stating that (1) disputes would be subject to
    arbitration by the National Grain and Feed Association
    (“NGFA”); and (2) Greving would be obligated to cover
    Northern Grain’s efforts to enforce the contract, including its
    costs and reasonable attorney’s fees, plus compound interest
    at the rate of 18% per annum.
    In November 2011 Greving received a copy of an arbitra-
    tion complaint that Northern Grain had filed with the NGFA.
    Shortly thereafter, he received a letter that included a proposed
    Arbitration Services Contract, which contained a provision
    stating that Greving would submit to arbitration by the NGFA.
    In January 2012 Greving, through counsel, responded to the
    letter and declined to submit to arbitration.
    In February 2012 Northern Grain filed an action to compel
    arbitration in federal court in the Western Division of the
    Northern District of Illinois, located in Rockford. The com-
    plaint invoked the court’s diversity jurisdiction. See 
    28 U.S.C. § 1332
    ; see also Federal Arbitration Act, 
    9 U.S.C. § 4
    ; Vaden v.
    Discover Bank, 
    556 U.S. 49
    , 59 (2009) (explaining that the
    relevant provision of the Federal Arbitration Act “ ‘bestow[s]
    no federal jurisdiction but rather requir[es] [for access to a
    federal forum] an independent jurisdictional basis’ over the
    parties’ dispute.” (alterations in original) (quoting Hall Street
    Assocs., LLC v. Mattel, Inc., 
    552 U.S. 576
    , 581–82 (2008)). In the
    underlying claim, Northern Grain seeks almost $1 million in
    damages plus interest, costs, and attorney’s fees.
    A few days after this action was filed, the district court
    required Northern Grain to amend its jurisdictional allegations
    6                                                           No. 12-2653
    to identify the principal place of business of its member
    corporations, which Northern Grain did on March 1, 2012. The
    summons wasn’t issued for two more weeks and wasn’t
    returned executed until March 28, 2012. In the meantime, and
    before learning of Northern Grain’s federal-court lawsuit,
    Greving independently filed suit in Wisconsin state court
    seeking, among other relief, a declaration that the dispute over
    the alleged contracts was not subject to arbitration and that the
    alleged contracts were invalid and unenforceable. He had
    company, too: Three Illinois farmers joined him as coplaintiffs.2
    After being served by Northern Grain, Greving moved to
    dismiss the Illinois lawsuit. He asserted that the district court
    lacked personal jurisdiction over him, that venue was im-
    proper in Rockford, that Northern Grain had failed to state a
    claim, and that the “doctrine of abstention” required dismissal
    because he already had an action arising out of the same facts
    pending in Wisconsin state court. The district court dismissed
    the case on personal-jurisdiction grounds without addressing
    Greving’s other arguments, and Northern Grain took this
    timely appeal. Neither party urges us to reach the other issues
    raised in Greving’s motion; personal jurisdiction is the sole
    issue.
    2
    Greving says he joined with these Illinois farmers in filing a lawsuit
    because they had similar claims and thus wanted to “minimize the expense
    and inconvenience of multiple lawsuits that arise out of the same facts and
    raise common issues.” Of course, the presence of Illinois farmers in the
    lawsuit also would have prevented Northern Grain from removing the case
    to the U.S. District Court for the Eastern District of Wisconsin based on
    diversity of citizenship. Greving informs us that his coplaintiffs’ claims
    have been resolved but the rest of the state-court suit remains pending.
    No. 12-2653                                                      7
    II. Discussion
    We review a dismissal for lack of personal jurisdiction de
    novo. Hyatt Int’l Corp. v. Coco, 
    302 F.3d 707
    , 712 (7th Cir. 2002)
    (citing Logan Prods., Inc. v. Optibase, Inc., 
    103 F.3d 49
    , 52 (7th
    Cir. 1996)). The plaintiff bears the burden of establishing
    personal jurisdiction when the defendant challenges it. Purdue
    Res. Found. v. Sanofi-Synthelabo, S.A., 
    338 F.3d 773
    , 782 (7th Cir.
    2003). Where, as here, the district court rules on a defendant’s
    motion to dismiss based on the submission of written materials
    without holding an evidentiary hearing, the plaintiff “ ‘need
    only make out a prima facie case of personal jurisdiction.’ ” 
    Id.
    (quoting Hyatt, 
    302 F.3d at 713
    ). We resolve factual disputes in
    the plaintiff’s favor when evaluating whether that showing has
    been made, 
    id.,
     though in the present case, the facts material to
    the personal-jurisdiction question are undisputed.
    Personal jurisdiction refers to a court’s “power to bring a
    person into its adjudicative process.” BLACK ’S LAW DICTIONARY
    930 (9th ed. 2009). A federal district court’s personal jurisdic-
    tion over a defendant is established in a diversity-jurisdiction
    case when the plaintiff serves the defendant with a summons
    or files a waiver of service, but only so long as the defendant is
    subject to the jurisdiction of a court of general jurisdiction in
    the state where the district court is located—here, Illinois. FED .
    R. CIV . P. 4(k)(1)(A). Illinois law permits its courts to exercise
    jurisdiction over a person “as to any cause of action arising
    from … (1) [t]he transaction of any business within [Illinois;
    or] … (7) [t]he making or performance of any contract or
    promise substantially connected with [Illinois].” 735 ILL . COMP.
    STAT. 5/2-209(a)(1), (7). Additionally, and more importantly,
    8                                                     No. 12-2653
    Illinois state courts may exercise jurisdiction “on any other
    basis now or hereafter permitted by the Illinois Constitution
    and the Constitution of the United States.” 
    Id.
     § 5/2-209(c).
    Thus, the statutory question merges with the constitutional
    one—if Illinois constitutionally may exercise personal jurisdic-
    tion over a defendant, its long-arm statute will enable it to do
    so. See Hyatt, 
    302 F.3d at
    714–15; see also Citadel Grp. Ltd. v.
    Wash. Reg’l Med. Ctr., 
    536 F.3d 757
    , 760–61 (7th Cir. 2008)
    (discussing the relationship between the “catch-all” provision
    of the Illinois long-arm statute, the Illinois Constitution, and
    the U.S. Constitution).
    The federal constitutional limits of a court’s personal
    jurisdiction in a diversity case are found in the Fourteenth
    Amendment’s due-process clause, see Burger King Corp. v.
    Rudzewicz, 
    471 U.S. 462
    , 464 (1985), which “protects an
    individual’s liberty interest in not being subject to the binding
    judgments of a forum with which he has established no
    meaningful ‘contacts, ties, or relations,’ ” 
    id.
     at 471–72 (quoting
    Int’l Shoe Co. v. Wash., Office of Unemployment Comp. & Place-
    ment, 
    326 U.S. 310
    , 319 (1945)). A forum state’s courts may not
    exercise personal jurisdiction over a nonconsenting, out-of-
    state defendant unless the defendant has “certain minimum
    contacts with it such that the maintenance of the suit does not
    offend ‘traditional notions of fair play and substantial justice.’ ”
    Int’l Shoe, 
    326 U.S. at 316
     (quoting Milliken v. Meyer, 
    311 U.S. 457
    , 463 (1940)). “The nature of the defendant’s contacts with
    the forum state determines the propriety of personal jurisdic-
    tion and also its scope—that is, whether jurisdiction is proper
    at all, and if so, whether it is general or specific to the claims
    made in the case.” Tamburo v. Dworkin, 
    601 F.3d 693
    , 701 (7th
    No. 12-2653                                                     9
    Cir. 2010). If the defendant has “ ‘continuous and systematic’
    contacts with a state,” the defendant is subject to general
    jurisdiction there in any action, even if the action is unrelated
    to those contacts. 
    Id.
     (quoting Helicopteros Nacionales de Colom-
    bia, S.A. v. Hall, 
    466 U.S. 408
    , 416 (1984)). Northern Grain
    doesn’t contend that Greving is subject to the general jurisdic-
    tion of the Illinois courts, so we focus our analysis on the
    specific-jurisdiction inquiry.
    To support an exercise of specific personal jurisdiction, the
    defendant’s contacts with the forum state must “directly relate
    to the challenged conduct or transaction.” 
    Id.
     at 702 (citing
    GCIU-Emp’r Ret. Fund v. Goldfarb Corp., 
    565 F.3d 1018
    , 1024 (7th
    Cir. 2009)). “Specific personal jurisdiction is appropriate where
    (1) the defendant has purposefully directed his activities at the
    forum state or purposefully availed himself of the privilege of
    conducting business in that state, and (2) the alleged injury
    arises out of the defendant’s forum-related activities.” 
    Id.
    (citing Burger King, 
    471 U.S. at 472
    ); see also Hanson v. Denckla,
    
    357 U.S. 235
    , 253 (1958) (explaining that there must be “some
    act by which the defendant purposefully avails itself of the
    privilege of conducting activities within the forum State”). The
    exercise of specific jurisdiction must also comport with
    traditional notions of fair play and substantial justice. Tamburo,
    
    601 F.3d at
    702 (citing Int’l Shoe, 
    326 U.S. at 316
    ).
    The defendant’s conduct and connection with the forum
    state must be substantial enough to make it reasonable for the
    defendant to anticipate that he could be haled into court there.
    Burger King, 
    471 U.S. at 474
    . This purposeful-availment
    requirement ensures that a defendant’s amenability to
    10                                                    No. 12-2653
    jurisdiction is not based on “random, fortuitous, or attenuated
    contacts,” 
    id. at 475
     (internal quotation marks omitted), but on
    contacts that demonstrate a real relationship with the state
    with respect to the transaction at issue, see Purdue Res. Found.,
    
    338 F.3d at 780
    .
    To this end, the Supreme Court repeatedly has
    asked whether the defendant has deliberately
    engaged in significant activities within the forum
    state, see Keeton v. Hustler Magazine, Inc., 
    465 U.S. 770
    , 781 (1984)[;] Kulko v. California Superior Ct.,
    
    436 U.S. 84
    , 94–95 (1978), or whether it has
    created continuing obligations between itself and
    a resident of the forum, see Travelers Health Ass'n
    v. Virginia, 
    339 U.S. 643
    , 648 (1950).
    
    Id.
     at 780–81 (parallel citations omitted).
    With respect to contract disputes, “contracting with an out-
    of-state party alone cannot establish automatically sufficient
    minimum contacts in the other party’s home forum.” Purdue
    Res. Found., 
    338 F.3d at
    781 (citing Burger King, 
    471 U.S. at 478
    ).
    Instead, we conduct a context-sensitive analysis of the contract,
    examining “prior negotiations, contemplated future conse-
    quences, the terms of the contract, and the parties’ course of
    actual dealing with each other.” 
    Id.
     (citing Burger King, 
    471 U.S. at 479
    ). So long as a commercial defendant’s efforts are
    purposefully directed toward residents of the forum state, the
    fact that the defendant hasn’t physically entered it does not
    defeat personal jurisdiction there. Burger King, 
    471 U.S. at 476
    .
    No. 12-2653                                                    11
    For example, in Madison Consulting Group v. South Carolina,
    
    752 F.2d 1193
     (7th Cir. 1985), we upheld personal jurisdiction
    in Wisconsin where South Carolina defendants initiated a
    contractual relationship with the plaintiff consulting firm based
    in Madison, Wisconsin. We held that the defendants purpose-
    fully availed themselves of the privilege of conducting business
    in Wisconsin by (1) placing a phone call to the Wisconsin firm
    to initiate the negotiations; (2) paying for a partner from the
    Wisconsin firm to fly to Washington, D.C., to discuss the
    consulting project; (3) mailing a copy of the contract to Wiscon-
    sin; and (4) knowing that the consulting firm would complete
    most of the work in Madison. 
    Id.
     at 1194–95. We reasoned that
    “[t]he question of which party initiated or solicited a business
    transaction has long been considered pertinent to the constitu-
    tional propriety of personal jurisdiction in a suit arising out of
    the transaction.” 
    Id. at 1202
    . Since the defendants not only
    initiated the negotiations but also induced one of the plaintiff’s
    agents to travel across the country, we deemed the defendants
    to be “actively reaching out to solicit the services of a Wiscon-
    sin partnership” and held that this sufficed for minimum-
    contacts purposes. 
    Id. at 1203
    .
    In arriving at this decision, we distinguished Lakeside Bridge
    & Steel Co. v. Mountain State Construction Co., 
    597 F.2d 596
     (7th
    Cir. 1979). There we found that Wisconsin lacked personal
    jurisdiction over a West Virginia-based defendant who ordered
    “structural assemblies” from the Wisconsin-based plaintiff
    without ever having set foot in Wisconsin. 
    Id. at 598
    . We
    recognized that although the performance of the contract
    would take place primarily within Wisconsin, the contract
    negotiations and acceptance took place via mail, and “the
    12                                                     No. 12-2653
    contacts with Wisconsin … consist[ed] solely of the unilateral
    activity of” the Wisconsin-based plaintiff; no other circum-
    stances indicated that the West Virginia company purposefully
    availed itself of the privilege of conducting activities within
    Wisconsin. 
    Id. at 603
     (internal quotation marks omitted).
    Lakeside has been on the receiving end of a good bit of
    distinguishing analysis, and even criticism, in the years since
    it was decided. See Citadel Grp., 
    536 F.3d at 763
     (“[T]his court
    has frequently distinguished Lakeside from other cases, based
    on the unique circumstances of each case.” (internal quotation
    marks omitted)); Madison Consulting Grp., 
    752 F.2d at 1205
    (Swygert, J., concurring in the result). Much of the criticism is
    focused on Lakeside’s apparent disregard of the important fact
    that the plaintiff performed the contract in the forum state at
    the defendant’s bidding, a relevant fact under subsequent
    Supreme Court precedent. See Burger King, 
    471 U.S. 462
    (finding minimum contacts with the forum state where the
    defendant entered into a franchise contract with a corporation
    headquartered in the forum state, even though his restaurant
    was on the other side of the country and he interacted primar-
    ily with a district office nearer to his restaurant). Still, Lakeside
    “has never been overruled.” Citadel, 
    536 F.3d at 763
    . Our
    decision in Madison Consulting Group treats Lakeside as marking
    something of a borderline for a no-jurisdiction finding:
    “[W]hen a defendant’s contacts with the forum state have been
    as—if not more—limited than those of the defendant in
    Lakeside, this court has denied personal jurisdiction.” 
    752 F.2d at 1200
    .
    No. 12-2653                                                                13
    Our case is readily distinguishable from Madison Consulting
    Group, which turned heavily on the fact that the South Carolina
    defendants not only initiated contact with the Wisconsin-based
    consulting firm, but also provided for one of its partners to fly
    to Washington, D.C., for a meeting. Here, there is no indication
    that Greving initiated this business relationship at all, let alone
    facilitated it through the expenditure of money. Even assuming
    that Greving’s attendance at the Illinois seed-corn meeting
    bears on the personal-jurisdiction analysis in this case,3 he did
    so without any apparent intent to solicit business there.
    Nothing in the record suggests that his meeting Wilson there
    was anything other than fortuitous on his part. (Of course,
    Wilson was there for the purpose of soliciting clients, but that
    is the type of unilateral activity by the plaintiff that doesn’t
    factor into the personal-jurisdiction analysis.) Indeed, Northern
    Grain does not dispute that it was Wilson who “would propose
    that [Greving] sell certain quantities of [grain].” And of course
    the contract was performed entirely in Wisconsin rather than
    3
    Given that we evaluate specific personal jurisdiction by reference to “the
    particular conduct underlying the claims made in the lawsuit,” Tamburo v.
    Dworkin, 
    601 F.3d 693
    , 702 (7th Cir. 2010), it is by no means clear that
    Greving’s attendance at the 2003 seed-corn meeting should impact our
    analysis at all. The contracts at issue here were allegedly formed years after
    2003, with numerous intervening contracts separating Greving’s initial
    meeting with Wilson from the contracts at issue here. Because the issue
    doesn’t affect our bottom line— at best Greving’s attendance at the seed-
    corn meeting can only be described as an attenuated contact with
    Illinois— we need not determine whether it constitutes part of the conduct
    underlying the claims in this lawsuit.
    14                                                    No. 12-2653
    in the forum state. Madison Consulting Group doesn’t dictate the
    result in this case.
    Northern Grain also points us to Logan Productions, Inc. v.
    Optibase, Inc., 
    103 F.3d 49
     (7th Cir. 1996). There, we focused less
    on who initiated contact and more on whether the defendant
    manufacturer “intentionally served the [forum-state] market.”
    
    Id. at 53
    . We concluded that since the California-based defen-
    dant had “advertised in trade magazines circulated in Wiscon-
    sin [the forum state],” signed up with a distributor in Wiscon-
    sin, and even conducted dealer training in Wisconsin, it had
    purposefully availed itself of the privilege of conducting
    activities in that state. 
    Id. at 53
    . We pointed out that the
    defendant had said itself that it “ ‘wanted the business’ of
    Wisconsin residents ‘and knew how to earn it!’ ” 
    Id.
     This was
    “not some little mom and pop retailer who passively sold only
    to those out-of-staters who happened to wander into its shop.”
    
    Id.
     In contrast, here there is no evidence that Greving engaged
    in any advertising or distribution efforts in Illinois—instead,
    he’s a farmer selling grain to a single buyer who markets the
    grain to others. Aside from contracting with and receiving
    money from this Illinois-based buyer—activities that Greving
    completed entirely from within the Badger State’s bor-
    ders—Greving has no relevant interaction with Illinois.
    Nor does considering the “ ‘terms of the contract and the
    parties’ actual course of dealing’ ” Citadel Grp., 
    536 F.3d at 761
    (quoting Burger King, 
    471 U.S. at 479
    ), dictate a finding of
    personal jurisdiction. In Citadel we distinguished Lakeside on
    the ground that “Lakeside’s contract was to complete a discrete
    task: to make and ship structural assemblies[, whereas] … [t]he
    No. 12-2653                                                     15
    contract in this case was for Citadel to provide a service.” Id. at
    763. Greving’s contracts similarly involve a discrete task: to
    grow and deliver grain in Wisconsin. They are more like the
    manufacturing contract in Lakeside—described in Citadel as
    involving no “continuing obligations,” but instead requiring
    the defendant purchaser only to “accept and pay for the
    assemblies,” id.—than the construction-project contract in
    Citadel, which required the defendant not only to pay the
    developer but also to stay in continuous contact with it during
    the course of contract performance, at least as a practical
    matter. Although we “do not recognize any inherent distinc-
    tion between goods and services contracts for purposes of due
    process,” Madison Consulting Grp., 
    752 F.2d at 1204
    , Citadel
    recognizes that the dynamics of each type of contract may
    affect the personal-jurisdiction analysis. Similarly, Supreme
    Court cases involving contracts with continuing obligations to
    the forum state—e.g., the franchise contract in Burger King,
    
    471 U.S. at 480
     (describing the contract as a “carefully struc-
    tured 20-year relationship that envisioned continuing and
    wide-reaching contacts with Burger King in Florida”) and the
    insurance contracts in Travelers Health Ass'n, 
    339 U.S. at 648
    (describing the insurance certificates as being “systematically
    and widely delivered” in the forum state and “creat[ing]
    continuing obligations” between the insurer and the insurance
    holders)—are inapposite to the series of discrete contracts at
    issue here, each of which was performed once by delivery on
    a specified date and, so far as the record reveals, involved no
    further obligations on Greving’s part.
    Focusing on the negotiations preceding each contract
    doesn’t help Northern Grain. Unlike Wisconsin Electrical
    16                                                    No. 12-2653
    Manufacturing Co. v. Pennant Products, Inc., 
    619 F.2d 676
     (7th
    Cir. 1980), where the meetings leading to contract formation
    were held in the forum state, see 
    id. at 677
    , Greving and Wilson
    discussed their contracts in Wisconsin or over the phone.
    NUCOR Corp. v. Aceros y Maquilas de Occidente, S.A. de C.V.,
    
    28 F.3d 572
     (7th Cir. 1994), is distinguishable for the same
    reason. There, prior telephone negotiations led the defendant’s
    general manager to meet with two other corporate officers in
    the forum state to “discuss in detail the purchase of secondary
    steel with [the plaintiff’s] sales manager at the [the plaintiff’s]
    plant.” 
    Id. at 580
    . In the present case, the preliminary negotia-
    tions leading to the first contract were conducted remotely and
    called for Greving to produce and deliver grain in Wisconsin,
    not in Illinois.
    Ultimately, our case seems to be closest to Lakeside—indeed,
    it involves even fewer contacts with the forum state than were
    present in that case. In Lakeside a contract initiated remotely by
    the defendant required the forum-state plaintiff to manufacture
    industrial parts; we held that the defendant wasn’t subject to
    personal jurisdiction in that state. Here, the contracts at issue
    were formed remotely or in the nonforum state, and they
    required the defendant to deliver grain grown in the nonforum
    state to a grain elevator also located in the nonforum state. The
    case against personal jurisdiction is stronger here.
    We recognize that Greving didn’t just have one contract for
    a discrete delivery of grain. He recontracted with Northern
    Grain from time to time for about nine years. And he did this
    knowing that Northern Grain was based in Illinois. But it is
    well established that an individual’s contract with an out-of-
    No. 12-2653                                                     17
    state party doesn’t suffice on its own to establish sufficient
    minimum contacts in the other party’s home forum. See Burger
    King, 
    471 U.S. at 478
    . And the nature of the particular contrac-
    tual relationship here belies the idea that Greving had suffi-
    cient contacts with Illinois to support personal jurisdiction in
    that state. Greving’s contractual duty was to grow his grain on
    his Wisconsin farm and deliver it to a Wisconsin grain elevator.
    Northern Grain’s duty was simply to compensate Greving for
    the grain. Greving wasn’t actively marketing his grain to other
    Illinois companies; he just happened to get acquainted with
    Wilson at the seed-corn trade meeting in Illinois. It was several
    months before Wilson’s negotiations with Greving in Wiscon-
    sin ripened into the first contract with Northern Grain. More-
    over, the record gives no indication that Greving knew (or
    cared) what Northern Grain did with his grain after each sale.
    That distinguishes this situation from the one in which a seller-
    defendant is actively marketing products in the buyer-
    plaintiff’s home state. See Giotis v. Apollo of the Ozarks, Inc.,
    
    800 F.2d 660
    , 667 (7th Cir. 1986) (explaining that personal
    jurisdiction in the buyer-plaintiff’s home state is often appro-
    priate in such situations). Greving did not purposefully avail
    himself of the privilege of conducting business in Illinois.
    Because Northern Grain has failed to show that Greving
    has sufficient minimum contacts with Illinois, we need not go
    further in the personal-jurisdiction analysis by, for example,
    analyzing whether requiring Greving to defend the suit in
    Rockford offends “ ‘traditional notions of fair play and sub-
    stantial justice.’ ” Int’l Shoe, 
    326 U.S. at 316
     (quoting Milliken,
    311 U.S. at 463). The district court correctly determined that it
    lacked personal jurisdiction over Greving in this case.
    AFFIRMED .
    

Document Info

Docket Number: 12-2653

Citation Numbers: 743 F.3d 487

Judges: Sykes

Filed Date: 2/18/2014

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (19)

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Nucor Corporation v. Aceros Y Maquilas De Occidente, S.A. ... , 28 F.3d 572 ( 1994 )

GCIU-Employer Retirement Fund v. Goldfarb Corp. , 565 F.3d 1018 ( 2009 )

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Hanson v. Denckla , 78 S. Ct. 1228 ( 1958 )

Kulko v. Superior Court of Cal., City and County of San ... , 98 S. Ct. 1690 ( 1978 )

Burger King Corp. v. Rudzewicz , 105 S. Ct. 2174 ( 1985 )

Hall Street Associates, L. L. C. v. Mattel, Inc. , 128 S. Ct. 1396 ( 2008 )

Vaden v. Discover Bank , 129 S. Ct. 1262 ( 2009 )

Keeton v. Hustler Magazine, Inc. , 104 S. Ct. 1473 ( 1984 )

Helicopteros Nacionales De Colombia, S. A. v. Hall , 104 S. Ct. 1868 ( 1984 )

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