GPO-CONAN-2017-10-15.pdf

922 suing out of state foreign corporations a curious

Info icon This preview shows pages 169–171. Sign up to view the full content.

connects him to the forum in a meaningful way. 922 Suing Out-of-State (Foreign) Corporations. —A curious as- pect of American law is that a corporation has no legal existence outside the boundaries of the state chartering it. 923 Thus, the basis for state court jurisdiction over an out-of-state (“foreign”) corpora- tion has been even more uncertain than that with respect to indi- viduals. Before International Shoe Co. v. Washington , 924 it was as- serted that, because a corporation could not carry on business in a state without the state’s permission, the state could condition its permission upon the corporation’s consent to submit to the jurisdic- tion of the state’s courts, either by appointment of someone to re- ceive process or in the absence of such designation, by accepting service upon corporate agents authorized to operate within the state. 925 Further, by doing business in a state, the corporation was deemed to be present there and thus subject to service of process and suit. 926 This theoretical corporate presence conflicted with the idea of cor- porations having no existence outside their state of incorporation, but it was nonetheless accepted that a corporation “doing business” 921 571 U.S. ___, No. 12–574, slip op. (2014). This type of “jurisdiction” is often referred to as “specific jurisdiction.” 922 Id. at 6–8. 923 Cf. Bank of Augusta v. Earle, 38 U.S. (13 Pet.) 519, 588 (1839). 924 326 U.S. 310 (1945). 925 Lafayette Ins. Co. v. French, 59 U.S. (18 How.) 404 (1855); St. Clair v. Cox, 196 U.S. 350 (1882); Commercial Mutual Accident Co. v. Davis, 213 U.S. 245 (1909); Simon v. Southern Ry., 236 U.S. 115 (1915); Pennsylvania Fire Ins. Co. v. Gold Is- sue Mining Co., 243 U.S. 93 (1917). 926 Presence was first independently used to sustain jurisdiction in Interna- tional Harvester Co. v. Kentucky, 234 U.S. 579 (1914), although the possibility was suggested as early as St. Clair v. Cox, 106 U.S. 350 (1882). See also Philadelphia & Reading Ry. v. McKibbin, 243 U.S. 264, 265 (1917) (Justice Brandeis for Court). 2001 AMENDMENT 14—RIGHTS GUARANTEED
Image of page 169

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

in a state to a sufficient degree was “present” for service of process upon its agents in the state who carried out that business. 927 Presence alone, however, does not expose a corporation to all manner of suits through the exercise of general jurisdiction. Only corporations, whose “continuous and systematic” affiliations with a forum make them “essentially at home” there, are broadly ame- nable to suit. 928 While the paradigmatic examples of where a corpo- rate defendant is “at home” are the corporation’s place of incorpora- tion and principal place of business, 929 the Court has recognized that in “exceptional cases” general jurisdiction can be exercised by a court located where the corporate defendant’s operations are “so substan- tial” as to “render the corporation at home in that state.” 930 None- theless, insubstantial in-state business, in and of itself, does not suf- fice to permit an assertion of jurisdiction over claims that are unrelated to any activity occurring in a state.
Image of page 170
Image of page 171
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern