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Phillips Petroleum Co. v. Shutts

Supreme Court of the United States (1985) | 86 L. Ed. 2d 628; 105 S. Ct. 2965; 472 U.S. 797; 1985 U.S. LEXIS 104; 2 Fed. R. Serv. 3d 797; 85 Oil & Gas Rep. 486; 53 U.S.L.W. 4879

4 min read

TL;DR: A state court may exercise jurisdiction over a nationwide plaintiff class via an "opt-out" notice system without requiring minimum contacts, but it cannot apply its own law to all claims if the state lacks significant contacts with the underlying transactions.

Legal Significance: This case established that the minimum contacts test does not apply to absent class-action plaintiffs, whose due process rights are protected by notice, opt-out rights, and adequate representation. It also affirmed constitutional limits on a forum's choice of law in nationwide class actions.