Foreign Companies Dragged into U.S. Courts Get Reprieve as U.S. Supreme Court Clarifies Limits on General Jurisdiction

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In Daimler AG v. Bauman, 571 U. S. ____ (Jan. 14, 2014), the U.S. Supreme Court reiterated that general or “all-purpose” jurisdiction can be exercised over foreign corporations only “when their affilia­tions with the State are so ‘continuous and systematic’ as to render them essentially at home in the forum State.” No general jurisdiction lies over a foreign defendant in a suit by foreign plaintiffs for actions outside of the U.S., based solely on its indirect subsidiary’s contacts with a state in which it is neither incorporated nor holds its principal place of business.

Topics:  DaimlerChrysler, DaimlerChrysler v Bauman, Foreign Corporations, Jurisdiction, SCOTUS

Published In: Civil Procedure Updates, General Business Updates, International Trade Updates, Personal Injury Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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