Simmons v. State

                                            NO.    83--102

                 IIJ T E SUPREME COURT O THE STATE O M I T N
                      H                 F           F OJ A A

                                                   1953




DAN SII@4ONS, a s G u a r d i a n A L i t e m
                                   d
o f B r e t o n Simmons, A Minor,

                              P l a i n t i f f and A p p e l l a n t ,

      -vs-

STATE O M N A A a n d STATE O OREGON,
       F OTN                 F

                              D e f e n d a n t s and R e s p o n d e n t s .




APPEAL FROM:       D i s t r i c t Court of t h e Fourth J u d i c i a l D i s t r i c t ,
                   I n and f o r t h e County o f M i s s o u l a ,
                   The H o n o r a b l e James B. W h e e l i s , J u d g e p r e s i d i n g .


COUNSEL O RECORD:
         F

        For Appellant:

                   Douglas R. A u s t i n , M i s s o u l a , Montana
                   Alan G. S t a r k o f f a r g u e d ; S t a r k o f f & S t a r k o f f Co.,
                   C l e v e l a n d , Ohio


        F o r Respondents:

                   G a r l i n g t o n , Lohn & Robinson; L a r r y E . R i l e y , > ' I i s s o u l a ,
                   Montana
                   Pamela L. A b e r n a t h y a r g u e d , A s s t . A t t y . G e n e r a l , Salem,
                   Oregon
                   Boone, K a r l b e r g & Haddon; Tom Boone, M i s s o u l a , Montana


                                                     - .-
                                            Submitted:            J u n e 1 0 , 1983

                                               Decided:           October 1 7 , 1983




                                            Clerk
Mr. Justice L.C.         Gulbrandson delivered the Opinion of the
Court.


         Plaintiff, acting as guardian ad litem for his minor
son, appeals from an order of the District Court of the
Fourth     Judicial       District,       Missoula     County,      granting
defendant State of Oregon's motion to dismiss plaintiff's
lawsuit on grounds            that Oregon    did     not   have    sufficient
minimum contacts with Montana so as to subject it to this
state's        jurisdiction,     and      also    that,    in     any   event,
considerations of comity warranted dismissal.                     (The action
by plaintiff against the State of Montana is still pending
in the District Court).            We affirm the District Court on
both grounds.

         The    following pertinent        facts    are    taken    from     the
transcript of proceedings before the District Court, the
pleadings, and relevant exhibits.                Unless otherwise stated,
these     facts    are    not disputed       or    controverted         by   the
respective parties.
         Section 50-19-203, MCA, requires that a test designed
to detect inborn metabolic disorders be performed on all
children born in Montana.          The attending physician or person
responsible for birth registration must ensure that a blood
sample is taken from each child so that a test can be done.
The Montana Department of Health and Environmental Sciences
is responsible for either conducting the tests itself or
contracting       with   an    approved    laboratory      to perform        the
tests.     Since 1977, the department has contracted with the
Health Division of the Oregon Department of Human Resources
to perform the test in its laboratory in Portland.                      Oregon
a l s o performs t h i s s e r v i c e f o r                Idaho,          Nevada,             and A l a s k a .

Public       health          officials            from     all     five           states          apparently

d e c i d e d t h a t i t was more c o s t e f f e c t i v e t o h a v e t h e O r e g o n

laboratory             conduct            the      tests        for         the       entire           region.

Montana, f o r e x a m p l e , h a s s u c h a low y e a r l y b i r t h r a t e t h a t

it    is     cheaper            to    have        the     samples           sent        to       the    Oregon

laboratory for analysis.

           Under       the       terms       of     the    interstate                 contract,           first

entered       into         in    June,       1977,        Oregon        agreed             to    supply       lab

screening         of       all       blood        samples        for    metabolic                disorders,

according             to     standards             set      forth           in        M.A.C.           section

16-2.18(6)-S1820                     [now       A.R.M.          section               16.24.201-2131.

Analysis          was       to       take       place       in     Oregon.                   The       Montana

Department of              H e a l t h a n d E n v i r o n m e n t a l S c i e n c e s was                t o be

notified         by     mail         or    by      telephone           of     any          abnormal          test
results       according              to   the      urgency        of        laboratory             findings.

Normal t e s t r e s u l t s were t o b e r e p o r t e d a t w e e k l y i n t e r v a l s

by    mail.            Oregon         maintained           an     in-house                 specialist          in

m e t a b o l i c d i s o r d e r s , who would b e a v a i l a b l e f o r c o n s u l t a t i o n

w i t h t h e S t a t e o f Montana o r t h e Montana p h y s i c i a n who t o o k

blood samples.                  The S t a t e o f Montana a g r e e d t o c o l l e c t t h e

blood samples f o r forwarding t o Oregon, and a g r e e d t o n o t i f y

hospitals         o r p h y s i c i a n s of         significant findings.                             Montana

agreed      t o p a y Oregon              $27,000         per    year,           in     four       quarterly

i n s t a l l m e n t s , b a s e d on a n a v e r a g e o f 1 2 , 0 0 0 t e s t s p e r f o r m e d

per year.          Montana would p a y a n a d d i t i o n a l $2.25                                for      each

sample      in     excess of              12,000.          Oregon           has       argued,          and    the

plaintiff        has not disagreed,                      that     the contract                   f e e s cover

nothing          more        than         the     marginal         cost            of        lab       testing

procedures.                Montana        does      not    contribute                 to     the       cost    of
maintaining the laboratory or the establishing of the test
procedures.     Furthermore, Oregon does not profit from the
contractual arrangement.     The contract was signed in Montana
and   Oregon,    and   finally     approved    by    Oregon    budget
authorities in 1977.
      Breton Simmons was born in Missoula, Montana, on June
22, 1977.      Shortly thereafter, a sample of his blood was
taken and forwarded to Oregon not long after the interstate
contract was      signed.    For    some reason, however,           the
laboratory failed to detect the presence of a particular
metabolic disorder, congenital athyrotic hypothyroidism, the
symptoms of which became apparent a few months after Breton
was born.     Breton did not receive initial treatment for the
illness until late September, 1977.        As a consequence, the
boy has allegedly suffered permanent and irreparable brain
and neuromuscular damage.
      Dan Simmons, as guardian ad litem for the boy, filed
an action in Oregon District Court in August, 1979, alleging
negligence on the part of Oregon authorities with respect to
conduct of the lab test.      Plaintiff's counsel in Oregon did
not pursue the case, and it was subsequently dismissed for
want of prosecution, although plaintiffs apparently have the
option to refile in Oregon within the next few months.              This
appeal stems from a related suit filed in Montana, naming
the State of Montana and the State of Oregon as defendants.
Oregon filed a motion to dismiss the suit on grounds that it
had not purposely availed          itself of     the privilege of
conducting activities in Montana, and that the assertion of
jurisdiction would     be   unreasonable   and      contrary   to   due
process.      In the alternative, Oregon argued that Montana
should     decline     jurisdiction        as    a   matter      of   comity.
Plaintiff countered that Oregon has sufficient minimum
contacts with this State, and that comity did not preclude
jurisdiction in this instance.
       The trial court granted Oregon's motion to dismiss on
both grounds.        Plaintiff appealed from the trial court's
order, asserting that the trial court erred by not finding
that there were sufficient minimum contacts, and that comity
did not preclude jurisdiction.             This appeal was dismissed
because       it lacked proper certification under Rule 54(b),
t4.R.Civ.P.      Subsequently, the appeal was properly certified,
and plaintiff again asks us to reverse the trial court on
the issues of minimum contacts and comity.
          In a recent decision, the United States Supreme Court
has    emphasized     that    the   reasonableness          of    asserting
jurisdiction over a nonresident defendant must be assessed
in the context of our federal system of government.                       See,
World-Wide Volkswagen Corp. v. Woodson (1980), 444 U.S.                   286,
100 S.Ct.       559, 62 L.Ed.2d     490.        In other words, we are
obliged to give serious consideration to the consequences
acquiring       jurisdiction will    have       on   the   maintenance     of
harmonious relations with other states.
       For a Montana court to exercise jurisdiction over a
nonresident defendant, two questions must be considered.
(1)      Does    the nonresident defendant             come      within   the
provisions of Montana's long-arm jurisdiction statutes; and
(2) would       exercise of    long-arm         jurisdiction over         the
nonresident comport with traditional notions of fair play
and substantial justice.          May v. Figgins (Mont. 1980), 607
P.2d   1132, 37 St.Rep.      493; Haker v. Southwestern Ry. Co.
(1978), 176 Mont.       364, 578 P.2d   724.    See, generally,
International Shoe Co. v. Washington (1945), 326 U.S.       310,
66 S.Ct.   154, 90 L.Ed.    95.   If we find, as a matter of
statutory construction, that the nonresident does not engage
in any of the several activities enumerated in our long-arm
statute,   then   our   analysis ends    and   we must   decline
jurisdiction.     However, even if the nonresident has done
something which potentially confers jurisdiction, we must
advance to the due process component which is ultimately
determinative of the jurisdictional question.
      The relevant statute is Rule 4B(1), M.R.Civ.P.,      which
provides, in pertinent part, that:
           "All persons found within the state of
           Montana are subject to the jurisdiction
           of the courts of this state.          In
           addition, any person is subject to the
           jurisdiction of the courts of this state
           as to any claim for relief arising from
           the   doing   personally,   through   an
           employee, or through an agent, of any of
           the following acts:


            "(b)   the commission of any act which
            results in accrual within this state of a
            tort action;


           "(e)    entering into a contract for
           services to be rendered or for materials
           to be furnished in this state by such
           person;


Oregon cannot be said to be "found within" Montana, so our
attention is turned to subsections (b) and (e).          Neither
plaintiff nor the State of Oregon has devoted much space to
this aspect of the statutory question, as both appear to
agree that either one or both subsections potentially
confers jurisdiction over Oregon.       Therefore, we turn our
attention t o the crucial constitutional inquiry.

          The Due P r o c e s s C l a u s e o f t h e F o u r t e e n t h Amendment t o

t h e U n i t e d S t a t e s C o n s t i t u t i o n l i m i t s t h e power o f               a state

court        to       render        a    valid        personal              judgment       against        a

nonresident defendant.                          Due p r o c e s s      requires        that     a    state

may e x e r c i s e p e r s o n a l j u r i s d i c t i o n o v e r t h e n o n r e s i d e n t o n l y

so     long       as        there       exist      "minimum           contacts"          between       the

defendant             and    the     forum        state.             See,    I n t e r n a t i o n a l Shoe,

supra,       326 U.S.          a t 316,         66 S . C t .     a t 158,         90 L.Ed.      a t 102.

S e e a l s o , Benham v . W o l t e r m a n n ( M o n t . 1 9 8 2 ) , 6 5 3 P.2d               1 3 5 , 39

St.Rep.         2017; Reed v . A m e r i c a n A i r l i n e s ,              Inc.     (Mont.       1982),

640 P.2d          912,       39 S t . R e p .     3 3 5 ; 'May v .          Figgins,     supra.        The

concept          of     "minimum          contacts"            has     undergone          development

since        I n t e r n a t i o n a l Shoe,        and        the     latest        phase     of     that

development must be examined h e r e .                               I n World-Wide Volkswagen

Corp.      v.     Woodson,          supra,         the     United       States         Supreme C o u r t

held     that         an     Oklahoma       court          could       not       exercise      personal

j u r i s d i c t i o n o v e r N e w York w h o l e s a l e a n d r e t a i l a u t o d e a l e r s

who     transacted            no    business          in       that     state      and    whose      only

"contact"              with        Oklahoma          consisted              of    an     automobile,

p u r c h a s e d i n N e w York by N e w York r e s i d e n t s ,                     t h a t exploded

i n a c o l l i s i o n i n Oklahoma.                  The c o u r t r e j e c t e d a n y a t t e m p t

t o c o n n e c t t h e d e a l e r s t o t h e Oklahoma f o r u m o n t h e b a s i s

that their             product might              f o r e s e e a b l y end up i n t h a t s t a t e

and c a u s e i n j u r y t h e r e .            World-Wide           Volkswagen,          supra,      444

U.S.     a t 288-97,           100 S.Ct.           a t 562-7,          62 L.Ed.2d        a t 495-502.

In     its      opinion,           the    court       elaborated             on    the    concept        of

minimum c o n t a c t s , t o w i t :

                      "The c o n c e p t o f minimum c o n t a c t s                   . . .
                      c a n be s e e n t o p e r f o r m two r e l a t e d , b u t
                      distinguishable, functions.              It protects
                      the defendant against t h e burdens of
            litigating in a distant or inconvenient
            forum.      And it acts to ensure that the
            States, throuqh their courts, d o n o t
                          -- ......................
            reach out beyond the limits imposed on
            t h e m by t h e i r s t a t u s a s
            ............................ c o - e q ---
                                                    ual
            sovereigns in a federal system."
444 U.S.    at 291-2, 100 S.Ct.   at 564, 62 L.Ed.2d           at 498.
(emphasis added)     Thus, there is a "federalism component"
which we are bound      to consider         in our      constitutional
inquiry.    Before examining this component in some detail, we
first look to the considerations             relevant    to protecting
nonresident defendants from inconvenient litigation in the
forum state.    In World-Wide Volkswagen, supra, the Supreme
Court enumerated these criteria:
            "We have said that the defendant's
            contacts with the forum State must be
            such that maintenance of the suit 'does
            not offend "traditional notions of fair
            play    and     substantial     justice."'
            Internatio
                      a    Shoe Co. v. Washington [326
            U.S. &3&31@ 161, quoting Milliken v.
            Meyer, 311 U.S. 457, 463 (1940).
            relationship between the defendant and
                                                   The
            the forum state must be such that it is
            'reasonable    .          .
                                     to require the
            corporation to defend the particular suit
            which is brought there.'         [citation
            omitted]    Implicit in this emphasis on
            reasonableness is the understanding that
            the burden on the defendant, while always
            a primary concern, will in an appropriate
            case be considered in light of other
            relevant factors, including the forum
            state's interest in adjudicating the
            dispute     [citation     omitted] ;   the
            plaintiff's     interest    in   obtaining
            convenient and effective relief [citation
            omitted], at least when that interest is
            not   adequately     protected    by   the
            plaintiff s power to choose the forum
            [citation omitted];       the   interstate
            judicial system's interest in obtaining
            the   most    efficient    resolution   of
            controversies; and the shared interest of
            the   several    States    in   furthering
            fundamental substantive social policies
            [citation omitted]."
444 U.S. at 292, 100 S.Ct. at 564, 6 2 L.Ed.2d          at 498.
      The   court observed     that       "limits   imposed   on   state
jurisdiction by the Due Process Clause, in its role as a
guarantor       against     inconvenient         litigation,    have   been
substantially        relaxed        over   the    years."       World-Wide
Volkswagen, supra, 444 U.S.            at 292, 100 S.Ct.        at 565, 62
L.Ed.2d    at    498.      This     relaxation has    been     effected    by
improvement in transportation and communication, as well as
advancements        in    the      field   of    interstate     commercial
transactions.           444 U.S.    at 292-3, 100 S.Ct.        at 565, 62
L.Ed.2d    at 498-9.        But these historical changes have not
rendered the "federalism component" less critical to the due
process    inquiry.        On the contrary, the court emphasized
that:
                ". . .    we have never accepted the
                proposition    that   state   lines   are
                irrelevant for jurisdictional purposes,
                nor could we, and remain faithful to the
                principles of interstate federalism
                embodied in the Constitution.        ...
                                                    [Tlhe
                Framers also intended that the States
                retain many essential attributes of
                sovereignty, including, in particular,
                the sovereign power to try causes in
                their own courts.     The sovereignty of
                each State, in turn, implied a limitation
                on the sovereignty of all of its sister
                States --- a limitation express or
                implicit in both the original scheme of
                the Constitution and the Fourteenth
                Amendment."
444 U.S. at 293;100         S.Ct. at 565, 62 L.Ed.2d        at 499.
        Furthermore,         the      Court      indicated      that      the
reasonableness of asserting jurisdiction over a nonresident
defendant had to be assessed "in the context of our federal
system of government        . . ."     444 U.S. at 293-4, 100 S.Ct. at
565, 62 L.Ed.2d         at 499, (citing International Shoe, supra,
326 U.S.   at 317, 66 S.Ct.          at 158, 90 L.Ed.       at 102).   That
this observation is to be construed as a requirement that
the "federalism component" be controlling in the due process
inquiry is supported by the Court's closing remarks on the
relevant constitutional test of appropriate jurisdiction:
             "Even if the defendant would suffer
             minimal or no inconvenience from being
             forced to litigate before the tribunals
             of another State; even if the forum State
             has a strong interest in applying its law
             to the controversy; even if the forum
             state is the most convenient location for
             litigation, the Due Process Clause,
             acting as an instrument of interstate
             federalism, may sometimes act to divest
             the State of its power to render a valid
             judgment. "
444 U.S.    at 294, 100 S.Ct.     at 565-6, 62 L.Ed.2d   at 499-500
(citing Hanson v.     B%+dGh    (1958), 357 U.S.     235, 251, 254,
                      Denc-his.
78 S.Ct. 1228, 1238, 1240, 2 L.Ed.2d       1283, 1296,1298.
      To    summarize:      our    constitutional     inquiry must
recognize that the United States Supreme Court has                "cut
short any trend toward unlimited personal jurisdiction and
emphasized that an isolated and unanticipated injury within
the foreign state is not sufficient to support in personam
jurisdiction."    Taubler v. Giraud (9th Cir. 1981), 655 F.2d
991, 993.    Because this Court has not had an opportunity to
consider the effect of World-Wide Volkswagen on due process
analysis, we look to opinions from federal and other state
courts for persuasive guidance.
      The Court of Appeals for            the Ninth    Circuit has
developed a standard of review commensurate with traditional
due   process    analysis   and     the   concerns    expressed    in
World-Wide Volkswagen:
             "If    the    nonresident    defendant's
             activities     within   a    state    are
             'substantial'     or   'continuous    and
             systematic,' there is a sufficient
             relationship between the defendant and
             the state to support jurisdiction even if
             the cause of action is unrelated to the
             defendant's forum activities. [citations
             omitted]
             "If, however, the defendant's activities
             are not so pervasive as to subject him to
             general jurisdiction, the issue whether
             jurisdiction will lie turns on the nature
             and quality of the defendant's contacts
             in relation to the cause of action.    In
             our circuit, we use the following
             approach in making this evaluation: (1)
             The nonresident defendant must do some
             act or consumate some transaction with
             the forum or perform some act by which he
             purposefully avails himself of the
             privilege of conducting activities in the
             forum, thereby invoking its laws.     (2)
             The claim must be one which arises out of
             or   results    from   the   defendant's
             forum-related activities.   (3) Exercise
             of jurisdiction must be reasonable.
             [citations omitted]."
Data Disc, Inc. v.     Systems Tech. Assoc.,          Inc.    (9th Cir.
1977), 557 F.2d 1280, 1287.     See, also, Ins. Co. of North
America v.    Marina Salina Cruz     (9th Cir. 1981), 649 F.2d
1266, 1270; Plant Food Co-op v. Wolfkill Feed           &    Fertilizer
(9th Cir. 1980), 633 F.2d      155, 158-9; Panos Inv. Co. v.
District Court    (1983),          Colo.          ,   662 P.2d      +8=&;
                                                                    180
Schlatter v. Mo-Comm Futures, Ltd. (1983),                   Kan.           I



662 P.2d 553, 562; Markby v. St. Anthony Hosp. Systems (Wyo.
1982), 647 P.2d 1068, 1073.        Inherent in this approach is
the recognition that while a nonresident defendant may be
found to have purposely availed itself of activities within
a forum state, the exercise of jurisdiction may still be
unreasonable.
      The    threshold question,    then,    is whether        Oregon's
activities in Montana are so pervasive as to subject it to
the general personal jurisdiction of our courts.              We cannot
say that Oregon's contract with the Department of Health and
Environmental Sciences amounts       to    "substantial" activity
within this State.     Nor can we say that this contract and
the   transactions   related   to    it     are   "continuous        and
systematic" in the sense this concept is usually applied.
Cases cited by plaintiff for the proposition that Oregon has
either substantial or continuous and systematic connections
with   Montana     generally       involve     individual      or   commercial
enterprises       that    actively    solicit     business within          other
states and derive substantial revenue from their activities.
There is, in other words, a conscious effort to be involved
in the economic life of a particular state.                     See, Southern
Machine Co. v. Mohasco Industries, Inc. (6th Cir. 1968), 401
F.2d 374 (nonresident company actively transacting machinery
parts business in Tennessee); Electric Regulator Corp. v.
St2rling Extruder          Corp.    (D.Conn.    1968),       280 F.Supp.    550
  e
(nonresident        defendant        contracts         for     machinery     in
Connecticut);        Reed    v.    American     Airlines,       Inc.,    supra
(nonresident airline company advertising and doing business
in Montana, training instate travel agents, and deriving
substantial revenue therefrom); State of North Dakota v.
Newberger       (Mont. 1980),       613 P.2d     1002, 37 St.Rep.          1119
(nonresident rock           concert promoter           actively     promoting
concerts    &   contracting for services in Montana).               Oregon, on
the other hand, has apparently been sought out by Montana
and other states to perform a public health service for
these states - Oregon and for a price not designed
             in                                                              to
generate a profit.           This is not the same as deliberate,
focused commercial activity.
       Plaintiff's reliance on Wendt v. County of Osceola,
Iowa (Minn. 1979), 289 N.W.2d           M, is         misplaced.    In Wendt,
                                         b7
the    Minnesota         Supreme    Court      held     that    a   political
subdivision of       Iowa was        subject to        the   jurisdiction of
Minnesota       courts    in a     tort action arising          from a     road
accident along the Minnesota-Iowa border.                    Plaintiffs in
that case were injured on a road one-half of which lay on
the Iowa side of the border.              Osceola County, Iowa, had a
long-standing contract with a neighboring Minnesota county
to maintain the entire road.            The Minnesota high court held
that the maintenance contract amounted to continuous and
systematic contract with Minnesota, and that this factor,
inter     alia, made         personal     jurisdiction       possible        and
reasonable.      Nevertheless, Wendt is distinguishable from the
facts    at    bar.        Osceola    County    was   obliged      to    perform
services - the State of Minnesota on a continuing basis,
         in
whereas Oregon has           contracted      to conduct     its activities
within that state.               In World-Wide Volkswagen, supra, the
Supreme Court reasoned that nonresident defendants can
usually foresee that their conduct or actions may ultimately
have an impact in another state, but that the crucial factor
with    respect       to   due     process     analysis     was    that     "the
defendant's conduct and connection with the forum state are
such that he should reasonably anticipate being haled into
Court there."         444 U.S.    at 297, 100 S.Ct. at 567, 62 L.Ed.2d
at 501.        While it is reasonable for an Iowa county to
ancitipate      being      called    into a     Minnesota    court       located
scarcely a few miles away to defend itself in an action
related       to work      done     in Minnesota, we        think       it less
reasonable for Oregon to assume that it should expect to
defend    a    similar      action     in Montana      on    the    basis     of
activities performed in Oregon.              Even if Wendt can fairly be
read     to     support       plaintiff's        contention,            personal
jurisdiction over Oregon              in this case would            still be
unreasonable for reasons expressed later in this opinion.
         Because Oregon's     activities in Montana are not so
pervasive, we turn to an analysis of that state's contacts
under the three-prong test enunciated by the Ninth Circuit
and deemed persuasive here.            Because Oregon concedes that
plaintiff's claim arises out of or results from Oregon's
contract with the State of Montana, we need only consider
the first and third prongs of the test.
        Turning to the first prong, we consider whether Oregon
has done something by which it has purposely availed itself
of the privilege of conducting activities in Montana,
thereby invoking the benefits and protections of our laws.
See Data Disc.      and   related cases, supra.          Case law from
other jurisdictions involving commercial contracts and
provision      of   medical   services     are    most    apropos    for
evaluating Oregon's activities under the first prong.
         It is well-settled that a nonresident defendant's mere
act of entering into a contract with a forum resident does
not provide the necessary jurisdictional contact between the
defendant and the forum state.            See, e.g.,     Iowa Electric
Light and Power Co. v. Atlas Corp.            (8th Cir.     1979), 603
F.2d    1301; Lakeside Bridge and         Steel v.     Mountain State
Construction (7th Cir.        1979)!   597 F.2d    596; Barnstone v.
Congregation Am Echad         (5th Cir.     1978),     574 F.2d     286;
Anderson v. Schiflett (10th Cir. 1971), 435 F.2d 1036.              Most
of     these   cases involved     situations where        nonresident
defendants and forum state plaintiffs contracted for various
goods and services, but where all or most of defendant's
performance      took place outside the forum state.                The
defendants did not maintain businesses, property, or agents
in the forum state, and          they did not actively transact
commercial o r            industrial activity therein.                                  As     such,     their

activities          were       structured              around          the    prospect           that     they

would n o t b e l i t i g a t i n g c o n t r a c t d i s p u t e s i n t h e c o u r t s o f

another state.              The k n o w l e d g e t h a t t h e d e f e n d a n t ' s " p r o d u c t "

was    "destined"              in    some         form        for       the        forum       was      not     a

s u f f i c i e n t contact with t h a t s t a t e s o a s t o confer personal

j u r i s d i c t i o n over t h e defendant, a s t h e c r i t i c a l performance

had    taken place             outside           t h e forum.            Iowa E l e c t r i c ,         supra,

6 0 3 F.2d a t 1 3 0 6 .            Accord:        C h a r i a v . C i g a r e t t e R a c i n g Team,

Inc.    ( 5 t h C i r . 1 9 7 8 ) , 583 F.2d             1 8 4 , 189; Benjamin v. Western

Boat    B u i l d i n g Corp.            (5th Cir.            1973),          472       F.2d     723,     730,

c e r t . d e n i e d , 414 U.S.           8 3 0 , 94 S . C t .        6 0 , 38 L.Ed.2d           64.

         Similarly,             Oregon            has        no     property             or     agents         in

Montana,         and t r a n s a c t s no b u s i n e s s h e r e .                Oregon was s o u g h t

out    by    the      State         of     Montana           to    conduct          lab        testing        for

metabolic           disorders,              and     this          service           is conducted               in

Oregon.       Although it is aware t h a t t e s t r e s u l t s a r e d e s t i n e d

f o r Montana, t h i s is n o t enough c o n t a c t t o w a r r a n t a h o l d i n g

that    it h a s purposely a v a i l e d                     itself          of    the privilege               of

conducting          activities             in     the    forum          state.           Telephone            and

mail    communication                of     test        results         do        not    transform            the

nature      of      the     contact             into     a        purposeful            injection         into

Montana.           I n t e r s t a t e communication is a n a l m o s t i n e v i t a b l e

accompaniment             to    doing        business             in    t h e modern            world,        and

c a n n o t by     itself       be considered a                    "contact"            for     justifying

t h e e x e r c i s e of       personal jurisdiction.                             See, e .g.,        Scullin

S t e e l Company         v.    National           Railway             Utilization             Corp.      (8th

Cir.    1 9 8 2 ) , 676 F.2d              309;    S p o r t i n g Good D i s t r i b u t o r s ,          Inc.

v . W h i t n e y (N.D.Fla.              1 9 8 0 ) , 498 F.Supp.              1088. A s t h e E i g h t h

C i r c u i t noted       in Scullin Steel,                   supra,          t e l e p h o n i c and m a i l
communication are generally "secondary or ancillary factors"
to underlying transactions, and therefore do not provide the
crucial minimum       contacts.      676    F.2d       at   314.      In    the
immediate case, Oregon's mail and telephone communications
merely     confirm    results     reached       in Oregon      from     tests
performed    there.     (And, it is the Montana Department of
Health and Environmental Sciences          --   not the State of Oregon
--   that has agreed to contact Montana physicians directly

concerning test results.)         These communications are within
the realm of "secondary or ancillary factors."
         An examination of cases involving the interstate
provision of medical services also suggests that Oregon, in
its role as a regional provider of lab testing for metabolic
disorders, cannot be said to have purposely availed itself
of the benefits and protections of the Montana forum.                        In
Wright v. Yackley (9th Cir. 1972), 459 F.2d 287, the Ninth
Circuit explored      the ramifications of interstate medical
services and their connections to a particular state.                      Mina
Wright, while a resident of South Dakota, had been treated
by Yackley, a South Dakota doctor, and at his urging had
taken medication prescribed and obtained in South Dakota.
Wright    later moved    to   Idaho, and        when    her prescription
expired, sought to have it filled in Idaho.                        The local
druggist required confirmation of the prescription, so
Wright wrote the South Dakota doctor for a copy of the old
prescription, which he provided at no charge.                      Wright had
the old prescription filled in Idaho, but later alleged that
she had suffered injury as a consequence of using the drugs.
She filed a malpractice action in Federal District Court in
Idaho, asserting that the court had jurisdiction over the
South Dakota doctor by virtue of the prescription mailed to
her.   459 F.2d at 288.
       Both    the   District   Court   and   the    Ninth     Circuit
disagreed with plaintiff's      assertion.     The Ninth Circuit
held that:
              "[ilf   [the doctor] was guilty of
              malpractice, it was through acts of
              diagnosis and prescription performed in
              South Dakota.      The mailing of the
              prescriptions to Idaho did not constitute
              new prescription.   It was not diagnosis
              and treatment by mail.     It was simply
              confirmation of the old diagnosis and
              prescription and was recognized by the
              druggist as such. It did, of course, put
              the doctor on notice that consequences of
              his South Dakota services would be felt
              in Idaho and that it was by his very act
              of mailing that this would be made
              possible.   In our view, however, this
              does no more than put the doctor in the
                                         ------------
              position of one who, in South D a k o t a ,
              treats an Idaho resident with knowledge
              of her imminent return to Idaho and that
              his treatment thus may cause effects
              there."
'f@
4 3 % F.2d    at 288-9.    (emphasis added)         Furthermore, the
exercise of personal jurisdiction would be unreasonable:
              "In the case of personal services focus
              must be on the place where the services
              are rendered, since this is the place of
              the receiver's (here the patient's) need.
              The need is personal and the services
              rendered   are   in   response   to   the
              dimensions of that personal need.    They
              are directed to no place but to the needy
              person herself. It is in the very nature
              of such services that their consequences
              will be felt wherever the person may
              choose to go.     However, the idea that
              tortious rendition of such services is a
              portable tort which can be deemed to have
              been committed whenever the consequences
              foreseeably    were    felt   is   wholly
              inconsistent with the public interest in
              having services of this sort generally
              available.       Medical    services   in
              particular should not be proscribed by
              the doctor's concerns as to where the
              patient may carry the consequences of his
              treatment and in what distant lands he
              may be called upon to defend it.         . . .
                   The s c o p e o f m e d i c a l t r e a t m e n t s h o u l d b e
                   d e f i n e d by t h e p a t i e n t ' s n e e d s , a s
                   d i a g n o s e d by t h e d o c t o r , r a t h e r t h a n by
                   geography."


          The r e a s o n i n g o f t h e N i n t h C i r c u i t h a s b e e n f o l l o w e d

i n similar circumstances i n other j u r i s d i c t i o n s .                      See, e.g.,

Lemke v .      St.     M a r g a r e t Hosp.        (N.D.     Ill.     1 9 8 2 ) , 552 F.Supp.

833 ( a l l e g e d n e g l i g e n c e i n I n d i a n a      --    injury in Illinois) ;
Kennedy       v.      Ziesmann          (E.D.Ky.            1981),     526     F.Supp.          1328
( a l l e g e d n e g l i g e n c e i n Ohio     --   i n j u r y i n Kentucky); Jackson
v.    Wileman         (W.D.Ky.          1979),        468      F.Supp.         822     (alleged

n e g l i g e n c e i n Ohio      --   i n j u r y i n K e n t u c k y ) ; G l o v e r v . Wagner

(D.Neb.      1 9 7 8 ) , 462 F.Supp.            3 0 8 ( a l l e g e d n e g l i g e n c e i n Iowa
--    i n j u r y i n Nebraska);          Kurtz v.          Draur     (E.D.Pa.       1 9 7 7 ) , 434

F.Supp.      958      (alleged negligence                   i n Nebraska        --    injury      in
Pennsylvania).               These c o u r t s have            uniformly distinguished

voluntary          interstate          economic           activity,        directed        at    the

forum      state's          economic        markets,           from     the provision of
medical       services         outside         of     the      forum       state     where       the

provider         has        not    solicited              clientele.            Under       these
circumstances,              the    courts           conclude         that     the    aggrieved

plaintiff        "ought t o expect t h a t he                      [or s h e ] w i l l have t o
t r a v e l again i f he           [or she]         t h e r e a f t e r complains t h a t t h e

services       sought        by    him     in       the     foreign     jurisdiction            were
therein        rendered           improperly."                Gelineau         v.     New       York

U n i v e r s i t y Hosp.    (D.N.J.      1 9 7 4 ) , 3 7 5 F.Supp.         6 6 1 , 667.

         W b e l i e v e t h a t t h e f a c t s i n Wright, s u p r a , and l a t e r
          e
cases,      c l o s e l y resemble t h o s e of              t h e immediate c a s e .           The
residence of p l a i n t i f f here i s n o t t o t a l l y i r r e l e v a n t a s it

was    in the cited cases,                 b e c a u s e h i s c h i l d was e n t i t l e d t o
the     testing         procedure          as       part      of     the     Oregon-Montana
contract.       As in the case of personalized medical services,
however,     the plaintiff,        or more      specifically, the blood
sample, "traveled" to Oregon for tests conducted there.                  The
results were          then   returned   to Montana     for    the ultimate
benefit of the child, while Oregon was compensated only for
its marginal costs of operation.               Oregon is certainly aware
that the negative as well as positive consequences of its
service will be          felt in Montana, but, like the             typical
nonresident       physician       in    the    above-cited      cases,    it
reasonably expects liability for the negative consequences
only in its own state.          In short, we think the facts of this
case are more akin to the services discussed in Wright v.
Yackley, supra, wherein the Ninth Circuit concluded that,
because    of    the    locus of performance         and     nature of    the
contract, the physician had not "purposely avail [ed] itself
of the privilege of conducting activities within the forum
State."     459 F.2d at 290, quoting Hanson v. Beak&+               (1958),
                                                             DenckIs,
357 U.S.     235, 253, 78 S.Ct.          1228, 1240, 2 L.Ed.2d          1283,


      Plaintiff insists that the facts of the immediate case
are virtually the same as those in McGee v. Riekhof (D.Mont.
1978), 442 F.Supp. 1276, and that the other medical services
cases are therefore inapplicable.                In McGee, the Federal
District Court held             a Utah    physician    subject     to    its
jurisdiction on the basis of a telephone call made to his
patient in Montana regarding a previously                      treated eye
condition.       But the plaintiff's only claim of negligence in
that case was the new diagnosis given over the telephone;
plaintiff       was    not    resting    any   claim   on    the previous
treatment in Utah.           Thus, McGee is distinguishable from the
f a c t s of     t h e i m m e d i a t e case.          Indeed,       the court          i n McGee
noted       the     relevant          difference           between          cases    involving
negligent         diagnosis          and/or        treatment         in     the     defendant's
s t a t e , and n e g l i g e n t d i a g n o s i s a n d / o r   t r e a t m e n t i n t h e forum
state:

                  " I n e a c h o f t h e s e cases [ A y l s t o c k v . Mayo
                  Found. (D.Mont. 1 9 7 2 ) , 3 4 1 F.Supp. 5 6 0 ;
                  McAndrew v . B u r n e t t (M.D.Penn. 1 9 7 4 ) , 374
                  F.Supp.            460;      G e l i n e a u v.           N e w York
                  U n i v e r s i t y Hosp.           (D.N.J.            1 9 7 4 ) , 375
                  F.Supp. 6611 t h e p l a i n t i f f had t r a v e l e d
                  o u t o f t h e f o r u m s t a t e t o seek m e d i c a l
                  services elsewhere.                         While they were
                  o u t s i d e t h e forum, a l l e g e d n e g l i g e n t a c t s
                  o c c u r e d , a n d upon r e t u r n i n g t o t h e f o r u m ,
                  they suffered injury.                         I n e a c h case t h e
                  b a s i s f o r t h e E ----------a u s e o f t h e
                  --------------                  roximate c
                  i n j u r i e s occured o u t s i d e t h e forum.                  It
                  is t o these cases, that the 'portable
                  ------------
                  t o r t ' language of Wright [v. Yackley] -                         is
                  most apropos.                   The case a t b a r i s
                  s i n g u l a r l y d i s t i n g u i s h a b l e because t h e
                  alleged            negligent            act        -- a d v i s i n g
                  p l a i n t i f f t o r e t u r n t o work p r e m a t u r e l y
                  -- o c c u r e d i n Montana.                    T h i s is n o t a
                  case o f d e f e n d a n t t r e a t i n g p l a i n t i f f i n
                  Utah and t h e n h a v i n g t h e e f f e c t s of t h e
                  treatment f e l t only after plaintiff
                  r e t u r n e d t o Montana.            P l a i n t i f f McGee was
                  i n Montana when t h e d i a g n o s i s was
                  rendered."
442    F.Supp.         at    1278.          The      court        observed        that     if    the
plaintiff          had      based       his       complaint          upon     the        previous
treatment         in     Utah,       then      the     court       would      have       declined

jurisdiction.            442 F.Supp.          a t 1278.
          P l a i n t i f f i n t h e i m m e d i a t e case i s c l a i m i n g n e g l i g e n c e

i n t h e t e s t i n g p r o c e d u r e and t h e d i a g n o s i s d e r i v e d t h e r e f r o m
i n O r e g o n , u n l i k e McGee who c o u l d p o i n t t o a new d i a g n o s i s
w h i c h was r e n d e r e d w h e r e i t was r e c e i v e d        --    i n Montana.         In
sum, w e f i n d M c G e e t o b e i n a p p o s i t e u n d e r t h e f a c t s o f t h e
immediate case.
         T h u s , we c a n n o t s a y t h a t O r e g o n h a s p u r p o s e l y a v a i l e d
itself      of    the privilege             of    conducting          activities           in   this
forum.       Admittedly, a fair argument to the contrary can be
made if one accepts an analogy between Oregon's contractual
obligations and       those of    a private     company   interjecting
itself into the Montana economy.           Nevertheless, even if we
accept this analogy for the purpose of argument, the
assertion of jurisdiction would not pass muster under the
"reasonableness" aspect of the three-pronged test.              It is to
the     question    of   reasonableness that we       now      turn our
attention.
        As    the United    States Supreme Court observed              in
World-Wide Volkswagen,           supra,   the   burdens    imposed    on
nonresidents while defending lawsuits in a foreign State
have diminished markedly through the years.               444 U.S.    at
292-3, 100 S.Ct. at 565, 62 L.Ed.2d        at 498.   Oregon, without
great difficulty, can adequately prepare for out-of-state
suits and fairly defend its interests beyond its borders.
But, this factor alone does not render it reasonable to
subject       the   state   to   jurisdiction.       Other     criteria
enumerated in - -
              World-Wide Volkswagen, supra, need to be
considered here.
        Montana courts certainly have an interest in allowing
Montana plaintiffs to seek restitution for tortious conduct.
See, World-Wide Volkswagen,         supra, 444 U.S.       at   292,   100
S.Ct.    at 564, 62 L.Ed.2d       at 498; cf. Kulko v. California
Superior Court (1978), 436 U.S. 84, 98, 98 S.Ct. 1690, 1700,
56 L.Ed.2d      132, 145.    (forum state has legitimate interest
in protecting child welfare in interstate custody dispute.)
However, it can almost always be said that a state has a
legitimate interest in protecting legal rights.                And this
right may not be so compelling "as to outweigh the factors
militating             against         jurisdiction."                     Ins.     Co.     of     North

America          v.     Marina       S a l i n a Cruz           (9th Cir.        1981),    649 F.2d

1266, 1273, c i t i n g Kulko,                    s u p r a , 436 U.S.       a t 9 2 , 98-101,        98

S.Ct.      a t     1696,          1700-1701,          56        L.Ed.2d     at      141,    145-146.

L i k e w i s e , t h e Montana f o r u m may p r o v i d e b o t h c o n v e n i e n t a n d

effective relief for plaintiff, especially i f a multiplicity

of l a w s u i t s c a n be avoided.                  B u t a s t h e Supreme C o u r t n o t e d

i n World-Wide               Volkswagen,             supra,        and     t h e Ninth       Circuit

r e i t e r a t e d i n Marina S a l i n a Cruz,                 supra,     6 4 9 F.2d     a t 1273,

t h i s i n t e r e s t o f p l a i n t i f f ' s m i g h t n o t b e as s i g n i f i c a n t i f

t h e p l a i n t i f f h a s t h e power t o s e l e c t a d i f f e r e n t f o r u m .             It

is c l e a r f r o m t h e r e c o r d t h a t p l a i n t i f f h a d t h a t c h o i c e a n d
e x e r c i s e d i t i n f a v o r o f t h e Oregon forum i n 1979.                        And, t h e

o p t i o n t o r e f i l e i n t h e n e a r f u t u r e is s t i l l open.                    Indeed,

i n its reply b r i e f , p l a i n t i f f argues t h a t "the imposition of

personal         jurisdiction             would       better       serve      the    i n t e r e s t s of

justice"         b e c a u s e i n Montana,           plaintiff           could r e c e i v e up t o

$300,000         under       our    s t a t e ' s t o r t claims l a w ,            a s opposed       to

$100,000              under         Oregon's               tort       liability            statute.

Or.Rev.Stat.,            S e c t i o n 30.270         (1982).         (We note here t h a t i n

our     recent         decision        in     White        v.     State     of    Montana        (Mont.

1983),      661        P.2d       1272,      40     St.Rep.        507,     we     held    that     the

limitation            on governmental               liability         for    t o r t damages        was
unconstitutional,                    although              the       Montana          legislature

subsequently restored t h i s limitation.                                 S e e , S.B.     465,    48th

Mont.Leg.,            Reg.    Sess.,      S e c t i o n 2 ( 1 ) , ( t o be c o d i f i e d a t 1983

Mont. Laws 6 7 5 ) ) .             W e cannot s a y whether t h e evidence p o i n t s
t o t h e j u s t i c e o f any p a r t i c u l a r award             -- t h a t    is f o r a j u r y

to      decide.              We    can        say,      however,            that      predicating

jurisdiction            on w h i c h        forum p r o v i d e s     the highest possible
damage award would be conducive to the unacceptable practice
of "forum-shopping."
         From the standpoint of efficient resolution of this
case, it is clear that Oregon may provide a better forum for
adjudication.    Plaintiff seems to focus his complaint almost
solely on allegedly negligent acts committed within                   the
State of Oregon.       The lab tests and diagnosis were conducted
there.     Apparently, the most important witnesses for both
parties will be located there.          Since the case would most
likely turn on testimony of these witnesses, a hearing in
the nonresident's home state may be more advantageous.               See,
Marina Salina Cruz, supra, 649 F.2d at 1273.
         The reasonableness of asserting jurisdiction over
Oregon must also be assessed in light of the shared interest
of both Montana and Oregon in advancing the state of quality
medical testing technology.            See, World-Wide Volkswagen
supra, 444 U.S. at 292, 100 S.Ct. at 564, 62 L.Ed.2d            at 498;
Kulko, supra, 436 U.S.      at 98, 98 S.Ct.      at 1700, 56 L.Ed.2d
at 145.      The regional metabolic disorder testing program
provided    by   Oregon    is a by-product        of   the spirit of
"co-operative federalism" as discussed by the U.S.              Supreme
Court.      Because    of our   state's      low birth-rate    and    the
apparently high start-up costs of developing lab facilities
and procedures, Montanans would              normally not have the
benefit of suitable testing procedures without access to
Oregon's    program.      In expressing      support   for access      to
progressive out-of-state medical services, however, we do
not   belittle   the    significance    of    having   those   services
performed according to the highest quality standards.                See,
e-g., McGee, supra, 442 F.Supp. at 1279.          Justice undeniably
would     be     defeated          if    the    refusal         to    assert    jurisdiction
would        insulate           Oregon         from       any    malpractice           claims.
Nevertheless,              we      conclude         that        acquiring       i n personam
j u r i s d i c t i o n o v e r Oregon u n d e r t h e f a c t s o f t h i s c a s e would
be unreasonable.
         We     emphasize          that       the   s e r v i c e s being      attacked     here

were p e r f o r m e d i n O r e g o n , and t h a t Oregon c o u r t s a r e o p e n t o
vindicate            the        interests           in     quality        medical         care.

Furthermore,           c o u r t s have recognized t h a t ,              in the situation
where m e d i c a l s e r v i c e s have been performed o u t s i d e t h e forum

state,       c o n s i d e r a t i o n s of   d u e p r o c e s s r e q u i r e more t h a n a n
appreciation f o r q u a l i t y medical care.                         I n Wright,       supra,

t h e Ninth C i r c u i t reasoned t h a t :

                  " t h e forum s t a t e ' s n a t u r a l i n t e r e s t i n
                  t h e p r o t e c t i o n of i t s c i t i z e n s is h e r e
                  c o u n t e r e d by a n i n t e r e s t i n t h e i r a c c e s s
                  t o m e d i c a l s e r v i c e s whenever needed.            In
                  our o p i n i o n , a s t a t e ' s dominant i n t e r e s t
                  on b e h a l f o f i t s c i t i z e n s i n s u c h a c a s e
                  a s t h i s is n o t t h a t t h e y s h o u l d b e f r e e
                  from i n j u r y by o u t - o f - s t a t e d o c t o r s , b u t
                  r a t h e r t h a t they should be a b l e t o s e c u r e
                  a d e q u a t e m e d i c a l s e r v i c e s t o meet t h e i r
                  n e e d s w h e r e v e r t h e y may g o .       This s t a t e
                  -------------------y --- j --------
                  i n t e r e s t necessaril                    re ects the
                  E -- p...........................c i e n c y ---
                     ro osition that the suffi                                  of
                  .........................n t i s s u b j e c t t o
                  out-of-state treatme
                  in-state inquiry."
4 5 9 F.2d      a t 291 ( e m p h a s i s a d d e d ) .     S e e a l s o Kennedy,       supra,


         We f i n d t h e reasoning of t h e Ninth C i r c u i t persuasive,

and c o n c l u d e t h a t      t h e concern f o r keeping t h i s i n t e r s t a t e
medical         testing         program         available            weighs    against      any

interest        i n asserting            jurisdiction           over    Oregon.        To f i n d
otherwise           under       these         facts      might       ultimately        have    a
"chilling           effect        on     the     availability           of     professional
services t o nonresidents,"                     Gelineau,        supra,      375 F. Supp.     at
667, to say nothing for the negative impact on the spirit of
"co-operative federalism."              If we found that jurisdiction
was reasonable under the given facts, we would be creating
precedent for jurisdiction over Oregon by other states that
contracted with it for regional blood testing services.                       In
that event, we think it highly likely that Oregon might
refrain        from   providing    the     service       rather    than    risk
defending its interests in several foreign states.                    Thus, we
find that proper respect for the mutual                        interests of
interstate access to medical services and quality rendering
of those same services requires that plaintiff pursue his
malpractice claim in the Oregon courts.
         The    previous    discussion     leads    us    to   consider      the
"federalism componet" given              high   credence by        the United
States Supreme Court in World-Wide Volkswagen.                    The focus of
our discussion here is not that the defendant is a sovereign
state, but rather, the right of Oregon courts to try actions
pertaining to those entities "found within" it.                    World-Wide
Volkswagen, supra, 444 U.S.             at 293, 100 S.Ct.          at 565, 62
L.Ed.2d    at 499.         In Marina Salina Cruz, supra, the Ninth
Circuit, in construing World-Wide Volkswagen, observed that
"it may be unreasonable to subject an out-of-state defendant
to   jurisdiction where           the    allegedly       tortious     act    is
committed outside of the forum state, having only an effect
within    the    state,     if   the act    is negligent          rather    than
purposeful."          649 F.2d   at 1271, quoting Data Disc., supra,
557 F.2d at 1288.          By analogy, the court reasoned that the
"reasonableness of jurisdiction            . . . depends       also in part
upon the seriousness of             the potential affront to the
sovereignty of a defendant's state."               649 F.2d at 1272.
          In the immediate case, the alleged negligent acts of
the Oregon      laboratory were      apparently committed in that
state and without intention of creating injury in Montana.
It would, therefore, seem unwise to subject the State of
Oregon to the jurisdiction of the courts of Montana.
Plaintiff might still insist that the higher limitation on
damage awards against the State of Montana would                better
serve the interests of justice.          Under the particular facts
of   this    case, however,       a de-emphasis      on    sovereignty
interests in order         to   insure the possibility of higher
monetary damages would serve as an affront to the political
decisions of Oregon, whose legislature has decided that a
$100,000 limitation in suits against governmental agencies
is appropriate   .
          In summary, Oregon has not structured its activities
in such a way as to purposely avail itself of the privilege
of functioning in Montana.             More importantly, careful
evaluation of the interests of sovereighty, efficiency of
resolution, and provision of important interstate medical
services, compel the conclusion that subjecting Oregon to
jurisdiction under these facts would be unreasonable.
          Even if we assume, for the purpose of argument, that
the nature of Oregon's contacts with Montana are such that
asserting      jurisdiction would        not offend       due process,
considerations of comity would compel dismissal of the suit.
In Ehrlich-Bober      &   Co. v. University of Houston (1980), 49
N.Y.2d.    574, 404   N.E.2d    726, 427 N.Y.S.2d   604, the Court of
Appeals of New York defined comity as:
              "'not a rule of law, but one of practice,
              convenience, and expediency' (Mast, Foos
              & Co. v. Stover Mfg. Co., 177 U.S.   485,
              488, 20 S.Ct. 708, 710, 44 L.Ed 856). It
             does not of its own force compel a
             particular course of action. Rather, it
             is an expression of one state's entirely
             voluntary decision to defer to the policy
             of another (Zeevi & Sons v. Grindlay's
             Bank     [Uganda], 37 N.Y.2d    220, 371
             N.Y.S.2d   892, 333 N.E.2d 168 cert. den.
             423 U.S. 866, 96 S.Ct 126, 46 L.Ed2d 95).
             Such a decision may be perceived as
             promoting uniformity of decision, as
             encouraging harmony among participants in
             a system of co-operative federalism, or
             as merely an expression of hope for
             reciprocal advantages in some future case
             in which the interests of the forum are
             more critical."


Evaluation of these factors in the context of the immediate
case lead us to the conclusion that plaintiff's            lawsuit
should be dismissed.
       We agree with plaintiff that a state like Oregon is
not constitutionally immune from suit in another state, see
Nevada v.    Hall   (1979), 440 U.S.   410, 99 S.Ct.     1182, 59
L.Ed2d 416, and we recognize that some state courts have, in
light of the Hall decision, rejected comity arguments and
asserted personal jurisdiction over other states, see, e.g.,
Mianecki v. Second Judicial Dist. Ct. (1983),            Nev.    I



658 P.2d     422; Wendt v.   County of Osceola,    Iowa, supra.
However, even plaintiff notes that the rule expressed in
Hall does not require this court to assume jurisdiction over
Oregon.     Indeed, the Hall court reasoned that   "   [i]t may be
wise policy, as a matter of harmonious interstate relations,
for states to accord each other immunity or to respect any
established limits on liability.       They are free to do so."
Hall, supra, 440 U.S.   at 426, 99 S.Ct. at 1191, 59 L.Ed2d at
429.      Thus, we are "free to close [our] courts to suits
against a sister state as a matter of comity rather than
constititional command."     Struebin v. State (Iowa 1982), 322
N.W.2d    84, 87.
         We find that our earlier observations with respect to
due process apply with comparable force to the matter of
comity   .    The instant case does not, so far as we                            can
surmise, involve facts like those of Hall and related cases
wherein non-resident defendants were clearly engaging in
activities       within    the    forum       states.      See Hall,           supra,
(Nevada employee involved in automobile collision with
California residents on California highway); Mianecki, supra
(Wisconsin parolee in Nevada involved in criminal conduct in
Nevada); Wendt, supra (Iowa county involved in contract work
in Minnesota).         On the contrary, Oregon is performing a
regional         medical        service        within     its     boundaries.
Furthermore, assumption of jurisdiction under these facts
would impinge unnecessarily upon the harmonious interstate
relations which        are      part    and     parcel    of   the     spirit     of
co-operative federalism.               Principles of comity, as well as
due process, require that we                   not subject Oregon to the
possibility of lawsuits in every state served by its medical
testing      facilities.         To    do     otherwise   could      conceivably
jeopardize the availability of this service.                         Contrary to
plaintiff's        assertions,          our     unwillingness        to    assume
jurisdiction would              not undermine       the quality           of    this
service.      The Oregon forum is still open to vindicate any
claim of negligence on the part of that state's medical
laboratory.       And, as we emphasized earlier in this opinion,
the      locus    of      the    alleged        negligent       acts      warrant
consideration of the Oregon forum as the most convenient and
efficient for resolution of this claim.                    Critical evidence
and witnesses are located there, and therefore Oregon courts
have j u s t       a s much,      if    n o t more,     interest        i n adjudicating

t h i s dispute.
         Once a g a i n , w e n o t e a s p e c i a l e m p h a s i s by p l a i n t i f f o n

t h e f a c t t h a t Montana h a s a h i g h e r l i m i t o n t o r t l i a b i l i t y
f o r n e g l i g e n t a c t s by p u b l i c a g e n c i e s t h a n t h a t a d o p t e d by
t h e Oregon l e g i s l a t u r e ,     a n d t h a t p l a i n t i f f would t h e r e f o r e
receive       a     more    just       compensation         in     Montana.          We    are

reluctant         t o use    t h i s a s j u s t i f i c a t i o n f o r h a u l i n g Oregon
b e f o r e a Montana d i s t r i c t c o u r t .      W e a r e i n n o p o s i t i o n now

t o d e t e r m i n e what c o n s t i t u t e s a " j u s t " award i n t h i s c a s e ,
a s t h e r e h a s b e e n n o t r i a l on t h e           merits of          plaintiff's
claim.      Moreover, under t h e f a c t s of t h i s c a s e , a s s e r t i o n o f
personal          jurisdiction         would    unnecessarily           project      Montana

law    onto        the     alleged       acts    of    another       sovereign        state.
Comity u r g e s u s , a t l e a s t i n t h i s i n s t a n c e ,        t o g i v e Oregon
c o u r t s t h e o p p o r t u n i t y t o hear t h i s c a s e under t h e laws of
that state.
         I n conclusion, we hold t h a t a s s e r t i o n of j u r i s d i c t i o n

o v e r Oregon i n t h i s c a s e would n o t c o m p o r t w i t h p r i n c i p l e s
of    due         process.             The      matters        considered           in     our

constitutional              inquiry       a l s o convince         us     that    personal
jurisdiction             should    not    be     allowed      in    the     interests       of

comity.        A c c o r d i n g l y , t h e judgment o f t h e d i s t r i c t c o u r t i s
                                                                           ,'
                                                                           ?
a £f irmed.




                                                Justice       ,
                                                              /




W e concur:
Justices




      Mr. Justice Fred J. Weber specially concurs as follows:
      I concur in the foregoing majority opinion only on the

 ground that we   should decline jurisdiction as a matter of

 comity.