United States Seventh Circuit

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

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, district court's denial of defendant's motion to dismiss for lack of personal jurisdiction is affirmed where: 1) 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; 2) 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; and 3) 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.

Appellate Information

  • Argued 09/24/2009
  • Decided 09/14/2010
  • Published 09/14/2010

Judges

  • <a href="http://pview.findlaw.com/view/2294328_1">KANNE</a>

Court

  • United States Seventh Circuit

Counsel