Personal Jurisdiction: U.S. Supreme Court Limits General Personal Jurisdiction Over Out-of-State and Foreign Corporations

Sullivan & Cromwell LLP - January 15, 2014
Download

In Daimler AG v. Bauman, No. 11-965 (Jan. 14, 2014), the U.S. Supreme Court limited the scope of general personal jurisdiction over out-of-state and foreign corporations. It held that a corporation is subject to general jurisdiction only in a State where its contacts are so “continuous and systematic,” judged against the corporation’s national and global activities, that it is essentially “at home” in that State. As a result, aside from “exceptional cases,” a corporation will be subject to general jurisdiction only in a State that is the corporation’s formal place of incorporation or its principal place of business.