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Align Corp. Ltd. v. Allister Mark Boustred

Citation: 421 P.3d 163Docket: Supreme Court Case No. 16SC448

Court: Supreme Court of Colorado; November 12, 2017; Colorado; State Supreme Court

Narrative Opinion Summary

This case addresses the issue of whether Colorado courts can exercise specific personal jurisdiction over Align Corporation Limited, a non-resident manufacturer, under the stream of commerce doctrine. The plaintiff, a Colorado resident, was injured by a defective rotor holder manufactured by Align and brought claims of strict liability and negligence. The court considered Align's arguments against jurisdiction, noting that it lacked a physical presence in the U.S. Nonetheless, the court found that Align had purposefully availed itself of the Colorado market by selling products through U.S. distributors, including Horizon Hobby, Inc., which sold Align products extensively in Colorado. The court applied the principles from World-Wide Volkswagen, affirming that Align's marketing strategies and established distribution channels satisfied the requirements for specific personal jurisdiction under Colorado's long-arm statute and constitutional due process. Align's appeal, which invoked the plurality opinions from Asahi and J. McIntyre, was dismissed, as the court emphasized the binding precedent of World-Wide Volkswagen. Ultimately, the court ruled that maintaining jurisdiction over Align was reasonable, aligning with the principles of fair play and substantial justice, given Colorado's interest in safeguarding its residents against defective products. The decision underscores the legal framework for asserting jurisdiction over foreign manufacturers whose products enter U.S. markets through established distribution networks.

Legal Issues Addressed

Colorado's Long-Arm Statute and Due Process

Application: The court held that personal jurisdiction over Align was consistent with Colorado's long-arm statute and constitutional due process, as Align marketed products in Colorado, establishing minimum contacts.

Reasoning: The court clarified that personal jurisdiction over a non-resident defendant requires compliance with Colorado's long-arm statute and constitutional due process.

Fair Play and Substantial Justice

Application: The court ruled that exercising jurisdiction over Align was consistent with fair play and substantial justice, balancing the burden on Align against Colorado's interest in protecting its residents.

Reasoning: The court affirmed that exercising jurisdiction over Align aligns with traditional notions of fair play and substantial justice.

Specific Personal Jurisdiction

Application: Specific jurisdiction was applied because Boustred's claims arose from Align's activities directed at Colorado residents, satisfying the minimum contacts requirement.

Reasoning: In this case, only specific jurisdiction was considered, as general jurisdiction was not claimed.

Stream of Commerce Doctrine

Application: The court evaluated whether Align Corporation Limited, a non-resident defendant, could be subjected to personal jurisdiction in Colorado under the stream of commerce doctrine.

Reasoning: The court examined the stream of commerce doctrine to evaluate whether Colorado could exercise specific personal jurisdiction over Align Corporation Limited, a non-resident defendant.

Sufficient Minimum Contacts

Application: Align's distribution of products in Colorado through Horizon established sufficient minimum contacts for the exercise of specific jurisdiction.

Reasoning: Align was deemed to have sufficient minimum contacts with Colorado, allowing the court to assert specific jurisdiction over it, as Boustred's injuries arose from Align's activities in the state.

World-Wide Volkswagen Precedent

Application: The court affirmed that the World-Wide Volkswagen decision provides the binding precedent for the stream of commerce cases, rejecting Align's reliance on Asahi and J. McIntyre.

Reasoning: The court found that Boustred adequately demonstrated a basis for personal jurisdiction under the stream of commerce doctrine, sufficient to counter a motion to dismiss.