Monday, February 3, 2014

Supreme Court Restricts the Jurisdictional Reach of US Courts

Supreme Court clarifies the jurisdictional reach of US courts over foreign corporations | Lexology  

On January 14, 2014, the US Supreme Court, in a unanimous judgment, once again reversed a lower court’s assertion of extraterritorial jurisdiction over a foreign corporation. The Court’s decision in Daimler AG v. Bauman et al. held that a US court cannot exercise general personal jurisdiction – whereby a court asserts jurisdiction over a defendant on claims unrelated to the defendant’s activities in the forum in which the court sits – over a foreign corporation solely because of contacts that the foreign corporation’s subsidiary has with the state in which the lawsuit is filed.

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