Last week’s decision by the U.S. Supreme Court in Daimler AG v. Bauman clarified the law on general jurisdiction and should bring some comfort to foreign parent companies whose ownership of a subsidiary in the United States is their primary contact with the country.
In May 2011, the Ninth Circuit Court of Appeals expanded the reach of general jurisdiction over a foreign corporation by imputing the contacts of its U.S. subsidiary to justify the exercise of personal jurisdiction over the corporation in a California court. In Bauman, the Supreme Court rejected this expansion of general jurisdiction and provided much-needed certainty on the limits of the potential forums a corporation could be brought before under the principle of general jurisdiction.
Originally published in Law 360 on January 21, 2014.
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