On June 27, 2011, the U.S. Supreme Court issued two decisions limiting the exposure of foreign businesses to the risk of litigation in U.S. courts. In both cases, the Supreme Court held that the foreign corporations were not subject to products liability lawsuits in U.S. state courts, since those courts lacked personal jurisdiction over the foreign companies. The first case, J. McIntyre Machinery, Ltd. v. Nicastro, involved a British industrial machinery manufacturer who used an independent U.S. distributor to sell and deliver its products into the U.S., but did not itself maintain facilities or operations in the U.S. The second case, Goodyear Dunlop Tires Operations, S.A. v. Brown, involved three foreign subsidiaries of an American company (Goodyear Dunlop) who exported only a small amount of tires into the U.S. In both cases, the Supreme Court confirmed that a foreign business, with no presence in the forum state, will not be subject to personal jurisdiction simply for having sent products into the "stream of commerce" with the knowledge that its activities may be used or have an impact on the residents of a particular state (view entire McIntyre opinion, view entire Goodyear opinion).

To view and read the full article click HERE. If you have any questions, please feel free to contact me, or alternatively, Derek Simpson, or any Morris Polich & Purdy LLP attorney in the Products Liability Practice Group.

Matthew L. Marshall
Chairperson, Products Liability Practice Group
213.417.5106
mmarshall@mpplaw.com

Morris Polich & Purdy LLP
1055 West Seventh Street
Twenty Fourth Floor
Los Angeles, CA 90017
www.mpplaw.com

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