You are viewing a free summary from Descrybe.ai. For citation checking, legal issue analysis, and other advanced tools, explore our Legal Research Toolkit — not free, but close.

Volkswagenwerk Aktiengesellschaft v. Schlunk

Citations: 100 L. Ed. 2d 722; 108 S. Ct. 2104; 486 U.S. 694; 1988 U.S. LEXIS 2731; 11 Fed. R. Serv. 3d 417; 56 U.S.L.W. 4595Docket: 86-1052

Court: Supreme Court of the United States; June 15, 1988; Federal Supreme Court; Federal Appellate Court

Narrative Opinion Summary

In this case, the U.S. Supreme Court addressed the issue of serving process on a foreign corporation, Volkswagen Aktiengesellschaft (VWAG), through its domestic subsidiary, Volkswagen of America, Inc. (VWoA), in a wrongful death lawsuit. The respondent alleged that defects in a vehicle manufactured by VWAG led to the deaths of his parents. VWAG contested the service of process performed via VWoA, arguing it should adhere to the Hague Service Convention, which outlines procedures for serving foreign entities. The trial court and Illinois Appellate Court ruled that VWoA acted as VWAG's agent for service of process, thus making the domestic service valid and the Convention inapplicable. The Supreme Court affirmed this decision, clarifying that the Hague Service Convention does not apply when service can be completed domestically under state law without the need for international document transmission. Justice O'Connor delivered the opinion, with a concurring opinion by Justice Brennan. The decision highlights that the forum state's internal law governs service of process, and when it permits domestic service, the Convention's requirements are not triggered. Consequently, the ruling upheld the validity of the service performed on VWAG through VWoA, providing clarity on the interplay between domestic service of process and international treaty obligations.

Legal Issues Addressed

Agency Relationship for Service of Process

Application: The Court affirmed the lower court's ruling that VWoA was effectively VWAG's agent for service of process under Illinois law due to their close corporate relationship.

Reasoning: The Appellate Court upheld this decision, affirming VWoA's agency status under Illinois law and the non-violation of the Hague Service Convention.

Due Process in Service of Process

Application: The Court found that service on a domestic agent that complies with state law and the Due Process Clause is sufficient, and no further inquiry into the Hague Service Convention is necessary.

Reasoning: The Court concluded that when service on a domestic agent complies with state law and the Due Process Clause, further examination of the Convention is unnecessary.

Hague Service Convention Applicability

Application: The Court determined that the Convention is not applicable when service is completed domestically as per the forum state's internal law without necessitating international transmission of documents.

Reasoning: The Court clarified that service of process is defined by the internal law of the forum state, and since Illinois law permitted service on VWoA without requiring international transmission of documents, the Convention's provisions were not relevant.

Service of Process on Foreign Corporations

Application: The Supreme Court held that service of process on a foreign corporation through its domestic subsidiary is valid under state law and does not require compliance with the Hague Service Convention.

Reasoning: The Supreme Court held that the Hague Service Convention does not apply when a foreign corporation is served through its domestic subsidiary that acts as an involuntary agent.