Wake Up Out-of-State Corporations, New Basis for Personal Jurisdiction Just Dropped: 'Registration' Jurisdiction
The court's majority rejected the argument that such an assertion of jurisdiction violated the company's due process rights in a case that will have ramifications for companies doing business nationwide, including in the state of Florida.
July 03, 2023 at 09:35 AM
10 minute read
Board of ContributorsAt the end of a term involving headline-grabbing cases involving the "independent legislature doctrine," affirmative action, and the Voting Rights Act, the U.S. Supreme Court also resolved a more "mundane" issue to the public, but a critical one for practitioners: Mallory v. Norfolk Southern Railway. The court in Mallory held that an out-of-state defendant corporation could be subject to general jurisdiction in a state based on its consent through a "doing business" registration; the defendant corporation had registered to "do business" in a state that required such registration, which required registering out-of-state companies to then appear in that state's courts "on any cause of action" brought against them. The court's majority rejected the argument that such an assertion of jurisdiction violated the company's due process rights in a case that will have ramifications for companies doing business nationwide, including in the state of Florida.
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