The decision in Daimler v. Bauman,1 is hailed as “arguably the most important U.S. Supreme Court ruling on general personal jurisdiction in 70 years.”2 In Daimler, the U.S. Supreme Court unanimously held that a corporation may be subject to general personal jurisdiction only where its contacts with a forum state are so “continuous and systematic” such that the corporation is “essentially at home in … the State.”3 Except in exceptional circumstances,4 the court further affirmed that the “paradigm” bases for general personal jurisdiction—where a corporation may be considered “at home”—are that corporation’s “place of incorporation and principal place of business.”5 This watershed decision reversed the notion that companies with substantial sales throughout the United States can be sued anywhere. While it has been nearly two years since Daimler‘s issuance, there have been notably few challenges to the exercise of general personal jurisdiction in the U.S. federal circuit courts. Indeed, the First, Fourth, Sixth, Eighth, Tenth, D.C., and Federal Circuits have yet to substantively consider a challenge to the exercise of general personal jurisdiction. Those courts that have addressed the issue, however, highlight who the beneficiaries of Daimler are: non-U.S. entities, entities sued in inconvenient forums, and, potentially, entities whose websites are accessible in many jurisdictions.

General Jurisdiction

Daimler involved the potential exercise of general personal jurisdiction over German DaimlerChrysler Aktiengesellschaft (Daimler) based on the contacts of its U.S. subsidiary, Mercedes-Benz USA (MBUSA).6 MBUSA is a Delaware limited liability corporation serving as Daimler’s exclusive importer and distributor in the United States where California then claimed more than 10 percent of all sales of new vehicles and accounted for 2.4 percent of Daimler’s worldwide sales.7 In 2004, the year the action was filed, Daimler’s California sales amounted to $4.6 billion. The Supreme Court acknowledged the amount was “a considerable sum by any measure.”8