International Shoe Co. v. Washington

International Shoe Co. (defendant), a manufacturer and seller of shoes and footwear, was a Delaware corporation with its principal place of business in Missouri. From 1937 to 1940, International Shoe employed 11 to 13 salesmen who resided and worked in Washington state (plaintiff). Sales managers in Missouri supervised and controlled the Washington salesmen’s activities. International Shoe provided the salesmen with sample shoes, and the salesmen rented rooms in businesses and hotels to display the samples. International Shoe reimbursed the rental costs and paid the salesmen commissions on their sales. The commissioner responsible for the assessment and collection of contributions to Washington’s state unemployment-compensation fund served a notice of assessment on International Shoe for failure to pay into the fund from 1937 to 1940. The commissioner served the notice of assessment upon a salesman employed by International Shoe in Washington. International Shoe moved to set aside the notice on the grounds that it was not a Washington corporation, was not doing business in Washington, had no registered agent within the state, and was not an employer and did not furnish employment within the state as defined under state law. The unemployment office’s appeal tribunal denied International Shoe’s motion to set aside the notice and held that the commissioner was entitled to recover the contributions. That decision was affirmed by the commissioner, the superior court, and the Washington Supreme Court. International Shoe appealed to the United States Supreme Court.