Burger King Corp. v. Rudzewicz Facts: Burger King is located in florida. They have 3000 outlets in 50 states. Conducts 80% of its business through franchise system o The Franchise system allows Burger King to provide services to their franchises will accepting a fee This network is conducted through a 2 tiered system. The Miami office is the governing office, accepting contracts, setting policy, etc. The 10 district offices are needed for the day tp day operation management. The (D) wanted to open a Burger King. He went to Miami, negotiated a deal, paid for the franchise fees and supplies and returned to open h is own store. After a while the store began to default on its franchise payments. After a prolonged term of negotiations the franchise was terminated. Burger King tried to sue the (D) for breech of contract and trademark violations for continuing to operate while not paying franchise fees. Actions: (P) filed suite in Florida o (D) felt this was out of jurisdiction Filed an answer and counter suite 3 day bench trial concluded that (P) did have jurisdiction (D) appealed to the Court of Appeals of the 11th Circuit. o Panel reversed the judgment.
Rules: Parties that reach out of one state and make agreements and contracts with another state are subject to regulations and sanctions in the other state for consequences of their actions. A voluntarily entered contract in another state can be protected by the state. Where the (D) had deliberately engaged in activities and has created continuing obligations, receiving protections and benefits from that state’s laws, it is not unreasonable to require him to submit to jurisdiction.