In what the dissent describes as a “radical departure” from established precedents that form the hallmark of due process, the state Supreme Court recently upheld jurisdiction in New Jersey over a foreign manufacturer which marketed its product nationally through a now-defunct Ohio exclusive distributor. We agree with the result.
In Nicastro v. McIntyre Machinery America, Ltd., the Court concluded that a foreign manufacturer that places a defective product into the stream of commerce in this country, through a distribution scheme that targets a national market, may be sued in New Jersey for damages for injuries caused by the product. In its extension of the stream-of-commerce doctrine, the Court reasoned that (1) the new reality of the globalization of commerce, (2) the clear direction of its own decision in Charles Gendler &Co. , and that of the United States Supreme Court in Ashai Metal Industry Co. , (3) New Jersey’s long-arm rules and (4) the severity of the injury involved, dictated that a British manufacturer should be subject to suit in New Jersey, despite its lack of contacts or presence in this state.
