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State of Illinois v. Hemi Group LLC, 09-1407

By FindLaw Staff on September 15, 2010 2:58 PM

State of Illinois v. Hemi Group LLC, 09-1407, concerned a challenge to the district court's denial of defendant's motion to dismiss for lack of personal jurisdiction, in the state of Illinois's suit against a New Mexico based company for selling cigarettes to Illinois residents in violation of state laws and for failing to report those sales in violation of federal law.

 

In affirming, the court held that defendant's contacts with Illinois were sufficient to satisfy due process because defendant maintained commercial websites through which customers could purchase cigarettes, calculate their shipping charges using their zip codes, and create accounts.  Also, Illinois's claims arise out of defendant's contacts with Illinois as it sold and shipped cigarettes to Illinois residents, and defendant's actions surrounding those sales triggered Illinois's claims against it.  Lastly, exercising jurisdiction over defendant is fair because defendant set up an expansive, sophisticated commercial venture online and it held itself out to conduct business nationwide and was apparently successful in reaching customers across the country.

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