mcgee international life ins argued november decided december petitioner son resident california bought life insurance policy arizona corporation naming petitioner beneficiary later respondent texas corporation agreed assume insurance obligations arizona corporation mailed reinsurance certificate petitioner son california offering insure accordance policy accepted offer paid premiums mail california home respondent office texas neither corporation ever office agent california done business state petitioner sent proofs son death respondent refused pay claim california statute subjecting foreign corporations suit california insurance contracts residents california even though corporations served process within state petitioner sued respondent obtained judgment california process served registered mail respondent principal place business texas held due process clause fourteenth amendment preclude california entering judgment binding respondent since suit based contract substantial connection california pp respondent insurance contract unconstitutionally impaired fact california statute involved become effective respondent assumed obligation insurance policy arthur mandell argued cause filed brief petitioner stanley hornsby argued cause filed brief respondent opinion justice black announced justice douglas petitioner lulu mcgee recovered judgment california state respondent international life insurance company contract insurance respondent served process california registered mail principal place business texas california based jurisdiction state statute subjects foreign corporations suit california insurance contracts residents state even though corporations served process within borders unable collect judgment california petitioner went texas filed suit judgment texas texas courts refused enforce judgment holding void fourteenth amendment service process outside california give courts state jurisdiction respondent since case raised important questions california similar laws granted certiorari controverted california properly exercised jurisdiction respondent texas courts erred refusing give judgment full faith credit material facts relatively simple lowell franklin resident california purchased life insurance policy empire mutual insurance company arizona corporation respondent agreed empire mutual assume insurance obligations respondent mailed reinsurance certificate franklin california offering insure accordance terms policy held empire mutual accepted offer time death paid premiums mail california home respondent texas office petitioner franklin mother beneficiary policy sent proofs death respondent refused pay claiming committed suicide appears neither empire mutual respondent ever office agent california far record us shows respondent never solicited done insurance business california apart policy involved since pennoyer neff held due process clause fourteenth amendment places limit power state courts enter binding judgments persons served process within boundaries line limitation falls subject prolific controversy particularly respect foreign corporations continuing process evolution accepted abandoned consent business presence standard measuring extent state judicial power corporations see henderson position foreign corporations american constitutional law recently international shoe washington decided due process requires order subject defendant judgment personam present within territory forum certain minimum contacts maintenance suit offend traditional notions fair play substantial justice looking back long history litigation trend clearly discernible toward expanding permissible scope state jurisdiction foreign corporations nonresidents part attributable fundamental transformation national economy years today many commercial transactions touch two may involve parties separated full continent increasing nationalization commerce come great increase amount business conducted mail across state lines time modern transportation communication made much less burdensome party sued defend state engages economic activity turning case think apparent due process clause preclude california entering judgment binding respondent sufficient purposes due process suit based contract substantial connection state cf hess pawloski henry doherty goodman pennoyer neff contract delivered california premiums mailed insured resident state died denied california manifest interest providing effective means redress residents insurers refuse pay claims residents severe disadvantage forced follow insurance company distant state order hold legally accountable claims small moderate individual claimants frequently afford cost bringing action foreign forum thus effect making company judgment proof often crucial witnesses company defense suicide found insured locality course may inconvenience insurer held amenable suit california contract certainly nothing amounts denial due process cf travelers health assn virginia ex rel state corporation contention respondent adequate notice suit sufficient time prepare defenses appear california statute became law respondent entered agreement franklin assume empire mutual obligation respondent contends application statute existing contract improperly impairs obligation contract believe contention devoid merit statute remedial purest sense term neither enlarged impaired respondent substantive rights obligations contract nothing provide petitioner california forum enforce whatever substantive rights might respondent time respondent given reasonable time appear defend merits notified suit circumstances vested right sued california cf bernheimer converse national surety architectural decorating funkhouser preston judgment reversed cause remanded civil appeals state texas first judicial district proceedings inconsistent opinion ordered footnotes see ace grain american eagle fire ins supp storey ins supp howes milling compania de astral boston metals md cert denied zacharakis bunker hill mut ins app div smyth twin state improvement