In a closely watched case, Monday’s Colorado Supreme Court decision in Magill v. Ford Motor Co. established two precedents that will make it harder to sue foreign corporations in Colorado going forward.

The underlying action involved a car accident the Magill family suffered in Douglas County—their residence county—with an individual from El Paso County. The Magills sued both the driver (on negligence theories) and Ford (for strict product liability). The lawsuit was filed in Denver based on the traditional rules of general jurisdiction that dictated that Ford could be sued in Colorado on any subject because it had a permanent agent—or permanent office—in Colorado and as such could be found to reside in Colorado for purposes of being sued here. Because its registered agent was in Denver, the old rules allowed Ford to be sued in Denver County.