Taylor v. Japan Brake Industrial Co, Ltd.
CourtAppellate Court of Illinois
Date FiledSeptember 8, 2026
Docket5-24-1277
StatusPublished
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Full Opinion
NOTICE
2026 IL App (5th) 241277
Decision filed 09/08/26. The
text of this decision may be NO. 5-24-1277
changed or corrected prior to
the filing of a Petition for IN THE
Rehearing or the disposition of
the same.
APPELLATE COURT OF ILLINOIS
FIFTH DISTRICT
______________________________________________________________________________
MELISSA TAYLOR, Individually and as Special ) Appeal from the
Administrator of the Estate of Donald R. Taylor, Deceased ) Circuit Court of
) Madison County.
Plaintiff-Appellee, )
)
v. ) No. 17-L-1426
)
JAPAN BRAKE INDUSTRIAL COMPANY, LTD., )
Individually and Successor-in-Interest to Japan Brake )
Lining Co., and Successor-in-Interest to Tokyo Brake )
Lining Co.; AKEBONO BRAKE INDUSTRY )
COMPANY, LTD.; AKEBONO BRAKE )
CORPORATION; JOHN CRANE, INC.; NISSAN )
NORTH AMERICA, INC.; SEARS, ROEBUCK & )
COMPANY; and TRACY INDUSTRIES, INC., )
)
Defendants, )
)
(Japan Brake Industrial Company, Ltd., Individually and )
and Successor-in-Interest to Japan Brake Lining Co., and ) Honorable
Successor-in-Interest to Tokyo Brake Lining Co., ) Stephen A. Stobbs,
Defendant-Appellant). ) Judge, presiding.
______________________________________________________________________________
PRESIDING JUSTICE CATES delivered the judgment of the court, with opinion.
Justices Boie and Hackett concurred in the judgment and opinion. *
∗
Justice Moore fully participated in the decision prior to his retirement. See Cirro Wrecking Co. v.
Roppolo, 153 Ill. 2d 6 (1992). Justice Boie was later added to the panel and has read the briefs and listened
to the oral arguments.
1
OPINION
¶1 Defendant, Japan Brake Industrial Company, Ltd., individually and successor-in-interest
to Japan Brake Lining Co., and successor-in-interest to Tokyo Brake Lining Co. (Japan Brake),
appeals from the circuit court’s order denying its motion to dismiss the plaintiff’s claim against it
for lack of personal jurisdiction. 1 For the following reasons, we affirm.
¶2 I. BACKGROUND
¶3 On October 13, 2017, Donald Taylor and his wife, Melissa Taylor, filed a complaint in the
circuit court of Madison County against multiple defendants alleging that Donald Taylor
developed mesothelioma and other asbestos-related cancers as a result of primary and secondary
exposure to asbestos fibers in defendants’ products. Japan Brake was added as a party defendant
in November 2018. Donald Taylor died in December 2019. Subsequently, Melissa Taylor was
appointed as special administrator of the estate of Donald R. Taylor, deceased, and substituted as
a party plaintiff.
¶4 The sixth amended complaint is the operative complaint. It contains counts against Japan
Brake and others for survival (count I), wrongful death (count II), negligent spoliation of evidence
(count III), and willful and wanton misconduct (count IV). The plaintiff generally alleged that from
the mid-1970s through 1985, the decedent’s father worked with and around defendants’ asbestos-
containing products while employed as a parts and services manager at Tri-City Datsun/Mazda
dealership in Alton, Illinois. The plaintiff further alleged that decedent’s father wore his work
clothes home and thereby introduced asbestos-contaminated fibers into the family’s home and car
1
Akebono Brake Industry Company, Ltd. (Akebono), also appealed from the circuit court’s order
denying its motion to dismiss plaintiff’s claims for lack of personal jurisdiction. The appeals by Akebono
and Japan Brake were taken together under the same appellate case number. Subsequently, Akebono moved
to voluntarily dismiss its appeal and that motion was granted. As a result, Japan Brake is the sole appellant.
2
and repeatedly exposed the decedent to asbestos. The plaintiff also alleged that the decedent was
exposed to asbestos fibers while assisting his father with automotive and home-remodeling jobs.
¶5 In the specific allegations as to Japan Brake, the plaintiff alleged that Japan Brake was in
the business of manufacturing brakes pads, brake linings, and friction materials as component parts
for use in passenger vehicles, and that Japan Brake knew its component parts would be either
installed as original equipment manufacturer (OEM) parts in passenger vehicles sold and
distributed in all 50 states in the United States or distributed and sold as genuine aftermarket
service parts in each state in the United States. The plaintiff further alleged that Japan Brake placed
its asbestos-containing brake pads, brake linings, and friction products into the stream of
commerce with the expectation that the products would be purchased and used in Illinois, that
Japan Brake indirectly distributed over 50,000 brakes into Illinois in the 1980s and 1990s in
indirect service of the Illinois market, and that the commercial activities of Japan Brake were
purposefully directed at Illinois and the other 49 states in the United States. According to the
plaintiff’s allegations, mechanics working in auto dealerships in Illinois, including the Tri-City
Datsun/Mazda dealership, eventually serviced, installed, or removed Japan Brake’s products. The
plaintiff alleged that the decedent experienced repeated primary and secondary exposure to
asbestos fibers released by automatic brakes, brake lining, and friction materials manufactured by
Japan Brake for use in motor vehicles manufactured and sold by Mazda. As a direct and proximate
result of the acts and omissions of Japan Brake, the decedent developed asbestos-related cancers,
including mesothelioma, and subsequently died.
¶6 On February 26, 2019, Japan Brake filed a motion to dismiss the claims against it for lack
of personal jurisdiction pursuant to section 2-301 and section 2-619(a)(9) of the Code of Civil
Procedure (735 ILCS 5/2-301, 2-619(a)(9) (West 2018)). Japan Brake argued that it was not
3
subject to the general jurisdiction of the Illinois courts because it was not an Illinois corporation
and it did not have its principal place of business in Illinois. Japan Brake further argued that it was
not subject to specific personal jurisdiction in Illinois because the plaintiff did not show that it had
purposefully availed itself of the benefits and protections of Illinois law or that the plaintiff’s cause
of action arose from any acts that Japan Brake performed within Illinois.
¶7 Japan Brake offered an affidavit by its former president, Takashi Sato, in support of its
motion to dismiss. Therein, Sato averred that Japan Brake was a Japanese company with its
principal place of business and corporate operations in Ibaraki, Japan. Sato further averred that
Japan Brake had never been an Illinois corporation, had never maintained a principal place of
business or headquarters in Illinois, and had never transacted any banking in Illinois. Further, Japan
Brake was not registered to do business in Illinois and did not maintain an agent for service of
process in Illinois. Sato stated that Japan Brake was served with suit in Japan and did not consent
to service in Illinois.
¶8 In response, the plaintiff claimed that Japan Brake was subject to specific personal
jurisdiction in Illinois under the stream-of-commerce theory recognized in World-Wide
Volkswagen Corp. v. Woodson, 444 U.S. 286 (1980). The plaintiff asserted that Japan Brake was
a sophisticated, large-scale manufacturer of automotive component parts, that Japan Brake
introduced its products into the stream of commerce with certainty that those products would arrive
in Illinois, and that Japan Brake intentionally targeted Illinois through state safety commissions
and motor vehicle associations whose approval was necessary to sell its products in the Illinois
market. In addition, the plaintiff asserted that during the time the decedent’s father worked at Tri-
City Datsun/Mazda in Wood River, Illinois, Japan Brake manufactured asbestos-containing OEM
parts and exclusive replacement parts for Datsun/Nissan and Mazda passenger vehicles, and that
4
Japan Brake knew that the component parts it manufactured would be distributed in all 50 states
in the United States, including Illinois. The plaintiff claimed that Japan Brake engaged in
purposeful indirect service of the Illinois market and took affirmative steps to reach that market
and that there was nothing fortuitous, isolated, random, or attenuated about the presence of Japan
Brake’s products in Illinois. The plaintiff concluded that Japan Brake had sufficient minimum
contacts with Illinois to meet the requirements for specific personal jurisdiction and that it was
reasonable to require Japan Brake to litigate in Illinois.
¶9 In support of its arguments, the plaintiff offered the deposition of Sato, 2 taken in a separate
asbestos-related case that had been filed against Japan Brake in Florida. Sato testified that Japan
Brake was a Japanese corporation. Japan Brake made brake pads for disc brakes and brake linings
for drum brakes in Japan. Its direct customers were Japanese brake caliper manufacturers and
automotive suppliers. Japan Brake delivered its brake pads to tier one caliper manufactures in
Japan. The caliper manufacturers used the brake pads to construct brake assemblies, which were
then sold to Japanese auto manufacturers in Japan. Sato considered Japan Brake to be a local
Japanese company in the 1980s. Sato explained that, as a component part manufacturer, Japan
Brake accommodated both the caliper manufacturers and the auto manufacturers in developing
brake products that the auto manufacturers wanted to install in their vehicles. During these
development meetings, the auto manufacturers provided some indication of which vehicle models
were destined for the United States market and which were destined for the Japanese market.
¶ 10 From 1963 through 1983, Japan Brake sought and obtained certification from the American
Association of Motor Vehicle Administrators (AAMVA) that its brake and friction products
2
According to the record, Sato testified as Japan Brake’s designated corporate representative on the
issue of personal jurisdiction in the Florida case, and plaintiff’s counsel conducted the deposition. The
parties agreed that Sato’s deposition could be used in the case at bar for purposes of the jurisdictional issue.
5
complied with safety standards promulgated by the Vehicle Equipment Safety Commission
(VESC). VESC was charged with setting uniform manufacturing, performance, and safety
standards for automotive equipment in the United States, including brake friction materials.
Several states, including Illinois, were members of VESC. Manufacturers of foreign and domestic
automotive parts sought AAMVA’s certification that their parts complied with VESC standards.
Pursuant to VESC standards, brake friction materials had to contain “edge codes.” Edge codes
were a series of letters and/or numbers that were applied to brake linings and brake pads. The codes
were then registered with the AAMVA.
¶ 11 Sato testified that between 1975 and 1992, Japan Brake placed “edge codes” on brake pads
and brake linings that were to be installed on vehicle models distributed, sold, and used in the
United States. The presence of an edge code on its brake material represented that Japan Brake
fulfilled a necessary condition for their parts being used in the United States. Japan Brake used a
testing laboratory in Michigan to procure the certification for its brake friction materials that were
to be used in vehicle models sold throughout the United States. Sato noted that Japan Brake
products that were certified as OEM parts were, in most cases, also approved for use as genuine
aftermarket service parts in the United States. Japan Brake sold aftermarket brake linings to Mazda
in Japan, and at the customer’s request, those brake linings were packaged in boxes containing the
Mazda logo.
¶ 12 Sato acknowledged that Japan Brake’s annual reports identified economic conditions in the
United States generally. Sato testified that Japan Brakes’ budget plan was built on the volume of
vehicles produced by tier one manufacturers such as Mazda and Honda, and it referenced the sales
numbers of Honda as it projected its annual production of brake products. If tier one auto
manufacturers decided to install Japan Brake’s friction products on more models of their vehicles,
6
then Japan Brake would increase production of its OEM and aftermarket replacements parts to
meet that demand. Sato could not say whether Japan Brake was the exclusive supplier of
component brake parts for certain models sold by Honda and Mazda because there were multiple
grades of each vehicle model. Sato testified that it was important for Japan Brake’s sales personnel
to make calls on Honda and Mazda facilities in Japan to obtain information about Japan Brake’s
reputation in the market, to learn about its competitor’s reputation, and to learn of any problems at
the plants. When asked what Sato meant by the market, he indicated that Japan Brake’s market
was the same market where Honda and Mazda vehicles were sold. Japan Brake was aware that
Honda and Mazda were installing Japan Brake’s component brake parts in vehicle models that
were distributed into markets in the United States and Canada. Japan Brake had some idea of the
number of vehicles Mazda and Honda were distributing into the United States, but it did not know
in which states the vehicles were being sold. Japan Brake did not seek to exclude its products from
distribution in any state in the United States.
¶ 13 Sato testified that he began working at Japan Brake in 1985. He was a member of the sales
staff involved in export. Beginning in October 1988 until 1995, Sato was assigned to work in the
United States, and he was stationed in Michigan. Sato was the first employee of Japan Brake
assigned to work in the United States. His duties included market research into new areas where
Japan Brake could expand or develop its business in North America. He also explored possibilities
for setting up joint ventures. Sato recalled that Japan Brake began a joint venture with Nuturn, a
brake manufacturing company in Tennessee, in 1988. While stationed in Michigan, Sato made
four or five courtesy visits to a Mazda plant in Flat Rock, Michigan, and approximately 10 visits
to a Honda plant in Ohio. He made these courtesy calls because Mazda and Honda were customers
of Japan Brake in Japan. During these visits, Sato made general inquiries about the kinds of cars
7
the companies were selling. Officers and employees of Japan Brake visited Sato while he was
stationed in the United States. Sato met some of them in Tennessee, Illinois, and perhaps New
York, as well as Michigan. Sato also attended trade shows in the United States.
¶ 14 As additional supporting exhibits, the plaintiff also offered several documents that outlined
the corporate history of Japan Brake. Japan Brake came into existence in 1958, founded by a
former chief engineer at Akebono Brake Industry Company who became dissatisfied with that
company and resigned. Japan Brake began supplying brake lining to Honda and Mazda almost
immediately after it started operations. By the early 1970s, almost all passenger cars manufactured
by Mazda were equipped with Japan Brake’s component parts. There was also documentation of
communications with American Brakeblok, a United States company, to establish a joint venture
with Japan Brake in the mid-1960s. Additional documentation indicated that Japan Brake opened
a “U.S. Office” in Farmington, Michigan, in 1988, and completed a joint venture with Nuturn
Corporation, U.S.A., to establish a company that would begin to manufacture friction materials in
Tennessee in 1992.
¶ 15 The plaintiff also offered the minutes from a meeting of the board of directors of Japan
Brake on October 24, 1985. The minutes documented requests for business trips to Australia,
Taiwan, and America. The minutes contained a report on a 15-day trip to America that began on
September 28, 1985, and ended October 12, 1985. There were five travel objectives identified for
the trip, including conducting market research, compiling specific business negotiations to
establish export policy for the company’s products, including its disc pads, in the American
market, surveying large asbestos-free trends, discussing disc pads for “GM, CP Division, and C.
Car,” and conducting a fact-finding survey on “the rebuild industry and jobbers.” According to the
minutes, Japan Brake representatives visited three auto parts shops in New York, five parts shops
8
in Chicago, and four parts shops in Detroit where they gathered information on each shop’s
suppliers, product lines, and pricing. The minutes outlined an action plan to expand future exports
and domestic production in the United States. A chart included in the minutes with the heading,
“Sales Performance of Japanese Cars sold in the US,” provided sales trends for Japanese cars from
1977 through 1984. The data revealed that between 1977 and 1984, Honda and Mazda sold
hundreds of thousands of vehicles in the United States and that their sales increased each year.
Thus, these minutes provided additional evidence that Japan Brake monitored United States sales
data for planning and production purposes. In addition, a publication of the Motor Vehicle
Manufacturers Association of the United States, called “MVMA Motor Vehicle Facts & Figure
1983,” indicated that data from 1981 and 1982 revealed that the imports of Japanese vehicles
accounted for more than 22% of the American passenger vehicle market in 1982 and that Illinois
was the fifth largest market for new passenger cars in 1981 and 1982.
¶ 16 As further evidence in support of her opposition to Japan Brake’s motion to dismiss, the
plaintiff offered several volumes of a publication of the AAMVA. The AAMVA compiled and
published lists of automotive equipment and component parts that had been certified in accordance
with the association’s performance and safety standards. According to the publications and
individual “Notices of Equipment Compliance” issued by AAMVA, several of Japan Brake’s
products had been certified as meeting standards for component parts in the United States.
¶ 17 Japan Brake filed a reply to the plaintiff’s response in opposition to the motion to dismiss.
Japan Brake argued that the plaintiff failed to meet her burden to show that Japan Brake had
purposefully availed itself of the benefits and protections of Illinois law. Japan Brake claimed that
it never manufactured, sold, or distributed its products in the United States, including Illinois,
during the relevant time period and that it did not market or advertise its products or solicit business
9
for its products in Illinois. In addition, Japan Brake claimed it had no control over the decisions of
the auto manufacturers, Nissan and Mazda, with regard to how and where to market, sell, or
distribute their final products and that the unilateral decisions by Nissan and Mazda to market and
sell their cars in the United States could not be imputed to Japan Brake. Finally, Japan Brake
asserted that its compliance with standards promulgated by the VESC and its registration with
AAMVA did not constitute purposeful availment of the privileges of conducting activities in
Illinois and was an insufficient basis for specific personal jurisdiction.
¶ 18 Following a hearing on July 22, 2020, the circuit court entered an order granting Japan
Brake’s motion to dismiss. The court found that the plaintiff failed to show that Japan Brake had
sufficient contacts with Illinois to allow the court to exercise specific personal jurisdiction over
Japan Brake. The plaintiff filed a motion to reconsider the court’s ruling. On October 27, 2020,
the circuit court granted the plaintiff’s motion to reconsider and granted the plaintiff leave to
conduct discovery limited to the issue of jurisdiction. In a subsequent order entered January 20,
2021, the circuit court clarified that Japan Brake had been reinstated as a party defendant solely
for purposes of jurisdictional discovery and that Japan Brake’s motion to dismiss for lack of
personal jurisdiction was stayed pending completion of that discovery.
¶ 19 After permitting a lengthy period for jurisdictional discovery and supplemental briefing,
the circuit court heard additional arguments on the jurisdictional issue. The court asked each party
to prepare a proposed order with findings of fact and conclusions of law and took the matter under
advisement. On November 12, 2024, the court denied Japan Brake’s motion to dismiss. In its
written order, the court concluded that Japan Brake was subject to specific personal jurisdiction in
Illinois. The court found that Japan Brake had purposefully directed its activities in Illinois, that
the plaintiff’s claims arose from and were related to Japan Brake’s Illinois contacts, and that any
10
burden imposed on Japan Brake in defending the lawsuit was far outweighed by the strong interest
of Illinois in providing a forum to redress injuries allegedly caused by a non-resident and in
Illinois’s societal concerns regarding product liability and occupational safety. Subsequently,
Japan Brake filed a petition for leave to appeal that order pursuant to Illinois Supreme Court Rule
306(a)(3) (eff. Oct. 1, 2020), and that petition was granted.
¶ 20 II. ANALYSIS
¶ 21 On appeal, Japan Brake claims that the circuit court erred in denying its motion to dismiss
the plaintiff’s claims for lack of personal jurisdiction. Japan Brake argues that the plaintiff did not
meet her burden to show that Japan Brake had jurisdictionally significant contacts, whether direct
or indirect, for purposes of specific personal jurisdiction. Japan Brake also claims that the plaintiff
failed to establish that her cause of action arose out of or was related to Japan Brake’s purported
contacts or activities in Illinois. Finally, Japan Brake contends that it would be unreasonable to
require it to litigate the plaintiff’s action in Illinois.
¶ 22 The plaintiff bears the burden to establish a prima facie basis for exercising personal
jurisdiction over a nonresident defendant. Russell v. SNFA, 2013 IL 113909, ¶ 28. When the circuit
court decides the question of personal jurisdiction based solely upon the pleadings and
documentary evidence and without an evidentiary hearing as it did here, our standard of review is
de novo. Russell, 2013 IL 113909, ¶ 28. Any conflicts in the pleadings and affidavits are resolved
in favor of the plaintiff, but the defendant may overcome plaintiff’s prima facie case for
jurisdiction by offering uncontradicted evidence that defeats jurisdiction. Russell, 2013 IL 113909,
¶ 28.
¶ 23 The exercise of personal jurisdiction over a nonresident defendant by an Illinois court is
authorized under the Illinois long-arm statute. See 735 ILCS 5/2-209 (West 2024). Subsection (c)
11
of the long-arm statute, commonly referred to as the “catch-all provision,” provides that a court
may exercise jurisdiction “on any other basis now or hereafter permitted by the Illinois
Constitution and the Constitution of the United States.” 735 ILCS 5/2-209(c) (West 2024). Under
the “catch-all provision,” the question is whether the nonresident defendant’s contacts or
connection with Illinois are sufficient to satisfy federal and Illinois due process concerns. Russell,
2013 IL 113909, ¶ 30. Japan Brake does not argue that the Illinois due process clause imposes any
greater restraint on the exercise of personal jurisdiction than the federal due process clause.
Therefore, we will not consider Illinois due process principles separately from federal due process
principles. Russell, 2013 IL 113909, ¶ 33.
¶ 24 Under federal due process principles, a state court may exercise personal jurisdiction over
a nonresident defendant if the defendant has “certain minimum contacts” with the forum state so
that “the maintenance of the suit does not offend traditional notions of fair play and substantial
justice.” (Internal quotation marks omitted.) International Shoe Co. v. Washington, 326 U.S. 310,
316 (1945). The minimum contacts required for personal jurisdiction depend on whether general
jurisdiction or specific jurisdiction is asserted. Russell, 2013 IL 113909, ¶ 36.
¶ 25 A court may exercise general jurisdiction over a nonresident corporation to hear any and
all claims against it when the corporation’s contacts with the forum state are so “ ‘continuous and
systematic’ as to render [it] essentially at home in the forum State.” Goodyear Dunlop Tires
Operations, S.A. v. Brown, 564 U.S. 915, 919 (2011) (quoting International Shoe, 326 U.S. at
317). When general jurisdiction exists, the court may hear any claims against the nonresident
corporation even if the cause of action arises from dealings entirely distinct from the corporation’s
activities in the forum state. Goodyear, 564 U.S. at 924. In this case, the plaintiff did not claim that
12
Japan Brake was subject to general jurisdiction in Illinois. Therefore, our review is limited to
specific jurisdiction.
¶ 26 Specific jurisdiction requires a showing that a nonresident defendant purposefully directed
its activities at the forum state, and the suit arose from alleged injuries that arose out of or related
to those activities. Burger King Corp. v. Rudzewicz, 471 U.S. 462, 472 (1985). A nonresident
defendant may be subjected to the forum state’s jurisdiction based on certain “ ‘single or
occasional acts’ ” in the forum state but only with respect to an occurrence related to those acts.
Goodyear, 564 U.S. at 923 (quoting International Shoe, 326 U.S. at 318). The “purposeful
availment” requirement protects a nonresident defendant from being brought into a jurisdiction
based on random, fortuitous, or attenuated contacts or the unilateral activity of another person.
Burger King, 471 U.S. at 475. Although the application of the rule may vary with the quality and
nature of a defendant’s activity, there must be “ ‘some act by which the defendant purposefully
avails itself of the privilege of conducting activities within the forum State, thus invoking the
benefits and protections of its laws.’ ” Burger King, 471 U.S. at 475 (quoting Hanson v. Denckla,
357 U.S. 235, 253 (1958)). If the court finds that a nonresident defendant has the requisite
minimum contacts with the forum state, the court then considers whether the assertion of personal
jurisdiction over that defendant would comport with “ ‘fair play and substantial justice.’ ” Burger
King, 471 U.S. at 476 (quoting International Shoe, 326 U.S. at 320).
¶ 27 The minimum contacts requirement for specific jurisdiction may be satisfied under the
stream-of-commerce theory. See Russell, 2013 IL 113909, ¶ 43 (citing World-Wide Volkswagen,
444 U.S. at 297-98; Gray v. American Radiator & Standard Sanitary Corp., 22 Ill. 2d 432 (1961).
In World-Wide Volkswagen, the United States Supreme Court considered the stream-of-commerce
theory of specific jurisdiction. There, the Supreme Court determined that “[t]he forum State does
13
not exceed its powers under the Due Process Clause if it asserts personal jurisdiction over a
corporation that delivers its products into the stream of commerce with the expectation that they
will be purchased by consumers in the forum State.” World-Wide Volkswagen, 444 U.S. at 297-98
(citing Gray, 22 Ill. 2d 432). The Supreme Court reasoned that when a corporation “purposefully
avails itself” of the privilege of conducting activities within the forum State, the corporation has
“clear notice” that it is subject to suit in that forum. (Internal quotation marks omitted.) World-
Wide Volkswagen, 444 U.S. at 297.
“Hence[,] if the sale of a product of a manufacturer or distributor *** is not simply
an isolated occurrence, but arises from the efforts of the manufacturer or distributor to
serve, directly or indirectly, the market for its products in other States, it is not unreasonable
to subject it to suit in one of those States if its allegedly defective merchandise has there
been the source of injury to its owner or to others.” World-Wide Volkswagen, 444 U.S. at
297.
¶ 28 The Illinois Supreme Court traced the evolution of the stream-of-commerce theory and
recognized that currently there are broad and narrow versions of the stream-of-commerce theory
and that the proper application of the theory is unsettled. See Russell, 2013 IL 113909, ¶¶ 52-53,
¶ 67; Wiles v. Morita Iron Works Co., 125 Ill. 2d 144, 156-57 (1988). Under the broad stream-of-
commerce theory, the forum State can assert personal jurisdiction over a nonresident defendant as
long as the defendant is involved in “the ‘regular and anticipated flow of products from
manufacture to distribution to retail sale’ ” and is “ ‘aware that the final product is being marketed
in the forum State.’ ” Wiles, 125 Ill. 2d at 157 (quoting Asahi Metal Industry Co. v. Superior Court
of California, 480 U.S. 102, 117 (1987) (Brennan, J., concurring in part, joined by White, Marshall,
and Blackmun, JJ.)). The narrow stream-of-commerce theory requires additional conduct beyond
14
simply placing products into the stream of commerce and knowing that the products will make
their way to the forum state. Asahi, 480 U.S. at 112 (opinion of O’Connor, J., joined by Rehnquist,
C.J., and Powel and Scalia, JJ.). Justice O’Connor offered a few examples of additional conduct
that may indicate an intent to serve the market, such as designing the product for the market in the
forum, advertising in the forum, or marketing the product through a distributor in the forum. See
Asahi, 480 U.S. at 112. Subsequently, in J. McIntyre Machinery, Ltd. v. Nicastro, 564 U.S. 873
(2011), the United States Supreme Court revisited the stream-of-commerce theory but reached no
consensus on its application.
¶ 29 After reviewing the separate viewpoints voiced in the McIntyre Machinery decision, our
supreme court observed that the United States Supreme Court “unanimously endorsed the
continued validity of the stream-of-commerce theory from World-Wide Volkswagen to establish
specific personal jurisdiction,” even though the proper application of that theory was not settled.
Russell, 2013 IL 113909, ¶ 67. Our supreme court also observed that a clear majority of United
States Supreme Court justices agreed that “specific jurisdiction should not be exercised based on
a single sale in a forum, even when a manufacturer or producer knows or reasonably should know
that its products are distributed through a nationwide distribution system that might lead to those
products being sold in any of the fifty states.” (Emphases in original and internal quotation marks
omitted.) Russell, 2013 IL 113909, ¶ 68. Notably, our supreme court declined to adopt either the
broad view or narrow view of the stream-of-commerce theory “without more definitive guidance”
from a majority of the United States Supreme Court. Russell, 2013 IL 113909, ¶ 71.
¶ 30 Still, as a matter of due process in cases involving specific personal jurisdiction, it is
essential that the nonresident defendant has engaged in some activity by which it can be said to
have purposefully availed itself of the privilege of conducting activities in the forum, thus invoking
15
the benefits and protections of the forum’s laws. Burger King, 471 U.S. at 475; see Wiles, 125 Ill.
2d at 159-60 (under either view, purposeful availment requires, at a minimum, that the nonresident
defendant is aware that the final product is being marketed in the forum State).
¶ 31 With these principles in mind, we consider whether the plaintiff met her burden to
adequately show that Japan Brake had the requisite minimum contacts with Illinois for our courts
to exercise specific personal jurisdiction. Japan Brake is a Japanese corporation that manufactures
brake pads and linings for use as OEM component parts and genuine aftermarket replacement parts
on new passenger vehicles made and distributed by Honda and Mazda. Within this distribution
pipeline, Japan Brake sells its brake parts to caliper manufacturers in Japan, who then incorporate
those brake parts into brake assemblies that are sold to Honda and Mazda in Japan. Honda and
Mazda install the brake assemblies on their vehicles and distribute the vehicles for sale in the
United States and other markets. At the request of Mazda, Japan Brake also packaged some of its
brake linings in boxes marked with the Mazda logo. Mazda distributed and sold to dealerships,
repair shops, and parts stores by Mazda as genuine aftermarket replacement parts. While Japan
Brake did not directly create or control the distribution system that brought its OEM parts and
aftermarket component parts into the United States, Japan Brake knew that its OEM component
parts were being installed on passenger vehicles that Mazda and Honda were distributing for sale
in the fifty states of the United States, including Illinois. Japan Brake also knew that some of its
aftermarket replacement parts were destined for sale in all fifty states, including Illinois.
¶ 32 According to the testimony of Japan Brake’s corporate designee, Sato, and the minutes of
Japan Brake’s board of directors, Japan Brake used the sales and distribution data provided by the
vehicle manufacturers to plan for the number of OEM parts and aftermarket parts to meet the
production needs of the auto manufacturers and to plan its annual budget and revenues. Japan
16
Brake also used that information to anticipate the sales volume of Mazda and Honda vehicles in
the United States, and it had no intention of excluding any state from its market. Thus, Japan Brake
knew that its market included Illinois and the other states in the United States, and it derived
revenue, albeit indirectly, from those markets.
¶ 33 Japan Brake often met with the auto manufacturers to discuss the development of brake
components for their vehicle models. Component part manufacturers such as Japan Brake were
required to comply with the performance and safety standards promulgated by the VESC and to
obtain certification of that compliance from the AAMVA in order for their component parts to be
used as OEM parts or aftermarket replacement parts on vehicles destined for the United States.
Consequently, Japan Brake agreed to meet the American standards when manufacturing OEM
brake parts and replacement parts intended for use on vehicles distributed and sold throughout the
United States, including Illinois. Japan Brake tailored its brake pads and linings to meet these
standards and placed specially designated edge codes on its parts identifying them as Japan Brake
parts. The evidence offered shows that Japan Brake worked closely with its partners, Mazda and
Honda, to design OEM and aftermarket parts for their vehicles destined for sale in the United
States, and it tracked sales into the American market for its own planning purposes. Thus, this is
not a case involving a single or isolated sale of one of the defendant’s products. From this evidence,
it can be reasonably inferred that Japan Brake custom manufactured component brake parts for
installation on vehicles that Mazda and Honda intended to distribute and sell throughout the United
States, including Illinois. It can likewise be inferred that Mazda and Honda acted as American
distributors for Japan Brake’s parts in the United States. See Russell, 2013 IL 113909, ¶¶ 72-74.
¶ 34 There is also evidence that Japan Brake sent employees to Illinois and other locations in
the United States to cultivate its business and to foster new contacts and joint ventures. From 1988
17
to 1995, Japan Brake assigned Sato to work in Michigan. While stationed in Michigan, Sato made
courtesy calls to Mazda and Honda automotive plants and conducted marketing research. He also
met with executives and employees of Japan Brake in Illinois. The minutes from the October 1985
meeting of the board of directors of Japan Brake demonstrated that Japan Brake was actively
engaged in increasing its business in the United States market, and that it selected Chicago as a
target of its investigation. Sales personnel from Japan Brake met with auto parts shops in Chicago,
Illinois, not only to obtain information about their suppliers and product lines, but also to explore
business relationships. The evidence shows that Japan Brake targeted Illinois for research and
development related to its products. In short, these were not random, isolated, or attenuated
contacts. See Russell, 2013 IL 113909, ¶ 78; Soria v. Chrysler Canada, Inc., 2011 IL App (2d)
101236, ¶¶ 29-30. These activities show that Japan Brake purposefully directed its activities
toward Illinois.
¶ 35 After thoroughly reviewing the record, we find that the plaintiff made a sufficient showing
that Japan Brake had the requisite minimum contacts with Illinois for purposes of specific personal
jurisdiction. Japan Brake is in the business of making component brake parts for Honda and Mazda
vehicles made in Japan and distributed in the United States and other markets. In order to satisfy
the demands of its corporate customers, Japan Brake tailored a product line of OEM and
replacement brake parts to meet the American performance and safety standards required for use
on vehicles intended for distribution and sale throughout the United States, including Illinois.
Japan Brake knew that once it placed its customized parts into the stream of commerce in Japan,
the distribution network established by Honda and Mazda would carry those parts into the United
Sates for sale in all fifty states, including Illinois. Thus, the respective distribution networ