The Other Shoe Has Dropped on General Jurisdiction: Utilizing U.S. Supreme Court’s Bauman & Brown Rulings
by James M. Beck, Michelle Lyu Cheng
Washington Legal Foundation
June 19, 2014
Doing business in all 50 states no longer subjects a corporation to suit in all 50 states. Recent Supreme Court decisions, including Daimler AG v. Bauman have established that general jurisdiction can be asserted against corporations inly in three limited circumstances: (1) the corporate defendant’s state of incorporation, (2) its principal place of business, or (3) “in an exceptional case” where the corporation’s in-state activities are “so substantial and of such a nature as to render the corporation at home in that State.” A corporation operating many places cannot be “at home” in all of them. Thus, corporate defendants facing hordes of lawsuits in forums where they are not “at home” should raise objections as early in litigation as possible; by waiting to object, they inadvertently waive their right to do so.