When a lawsuit is filed in Kentucky against a non-resident defendant, the plaintiff (the person bringing the suit) bears the burden of establishing jurisdiction. This involves a two step process. First, the claim is analyzed under Kentucky statute to determine whether it falls under an enumerated category. These categories are fairly broad and a lot of conduct involving minimal Kentucky ties will satisfy this statute. If one of the enumerated categories under K.R.S. 454.210 is met, the inquiry then continues. The second step is determining whether exercising personal jurisdiction over the non-resident defendant offends his federal due process rights.
Due process requires that someone being sued out-of-state have certain minimal contacts with that state. This protects parties from binding judgments in places where they have established no meaningful contacts or ties. “Fair warning” of jurisdiction is met if a defendant purposefully directs activities into a state and the litigation results from alleged injuries arising from those activities.
The test for determining whether personal jurisdiction is established asks: (1) whether the defendant purposefully availed himself of the privilege of acting within the forum state or causing a consequence in the forum state; (2) whether the cause of action arises from the alleged instate activities; and (3) whether such connections to the state make jurisdiction reasonable. It should be noted that other states have adopted broader standards for establishing personal jurisdiction than Kentucky has.
Kentucky courts have made clear that a single transaction involving only one-party residing in Kentucky will probably not be enough to establish jurisdiction. But, the more business is done and the more contacts established, the more likely that jurisdiction will apply. Advertising targeting Kentucky residents is evidence of purposeful availing of Kentucky law, while if the transaction is mere happenstance, that weighs against personal jurisdiction being found.
Before litigating the merits of a claim made against an out-of-state party, it is essential to check to see whether personal jurisdiction will support a Kentucky lawsuit.