Asahi Metal Industry Co. v. Superior Court, 480 U.S. 102 (1987), decided on February 24, 1987, was a case decided by the United States Supreme Court, in which the court decided whether a foreign corporation, by merely being aware that its products could end up in the forum state and into the American "stream of commerce" which later caused injuries, satisfied the minimum contact necessary to satisfy jurisdictional due process requirements.
These valves were bought by Cheng Shin Rubber Industrial Co., a Taiwanese distributor.
The accident victim sued Cheng Shin in a California state court, and Cheng Shin in turn filed a third-party complaint (impleader) seeking indemnification from Asahi.
The Supreme Court applied a five-factor test in determining whether "traditional notions of fair play" would permit the assertion of personal jurisdiction over a foreign (meaning out-of-state) defendant: The Court found that in this case, the burden on the defendant was severe based on both the geographic distance and legal dissimilarities between Japan and the United States.
Cheng Shin also did not show that it would be inconvenienced if the case for indemnification against Asahi were heard in Japan or Taiwan instead of California.