McGee v. International Life Ins. Co.

McGee v. International Life Ins. Co.
355 U.S. 220, 78 S.Ct. 199, 2 L.Ed.2d 223 (1957)

Facts: McGee, a California resident, received a judgment in her favor against International Life Ins. Co. in a California court. (There was a law in California saying that if a foreign corporation has insurance contracts with state residents, it can be sued in California even if the corporation could not be served in California). Since McGee couldn't collect in California, she went to a Texas court, which refused to honor the suit under the 14th amendment.

Procedure: McGee sued I.L.I. Co. in California, tried to have the Texas courts enforce it, and they refused. McGee appealed.

Issue: Did the California courts have jurisdiction?

Holding: Yes

Reasoning: The trend has been towards expanding the power of the states' ability to exercise jurisdiction over foreign corporations; the SC believes this is a good thing and that the contract with a resident is enough for minimum contact.