Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: February 12, 2014
The Firm
201-896-4100 info@sh-law.comLate last month, the U.S. Supreme Court released it much-anticipated decision in Daimler AG v. Bauman, which addressed when U.S. federal courts can exercise jurisdiction over corporations for conduct occurring exclusively overseas. The Court’s narrow view of general jurisdiction will likely make it harder to sue foreign and out-of-state businesses.
The case involved allegations of human rights abuses by residents of Argentina against Mercedes Benz Argentina, a subsidiary of Daimler AG. The plaintiffs contended that personal jurisdiction over Daimler rested on the California contacts of Mercedes-Benz USA, LLC (MBUSA), another Daimler subsidiary. MBUSA is a Delaware corporation with a principal place of business in New Jersey; it has several independent dealerships in California, among other states.
The Ninth Circuit Court of Appeals ruled that sales of the company’s Mercedes Benz vehicles in California and other commercial activity provided a sufficient basis for personal jurisdiction. However, the Supreme Court reversed the decision, holding that Daimler’s conduct in Argentina was outside of the reach of U.S. courts.
In reaching its decision, the Court focused on the distinction between specific and general jurisdiction, the latter of which is necessary when the lawsuit does not arise from the defendant’s conduct in the forum state. As explained by the Court, a corporation is subject to “general jurisdiction” only if its extensive contacts with the forum render it “at home” there.
With regard to the precise definition of “at home,” the justices suggested that general personal jurisdiction over a corporation may only exist in its place of incorporation and principal place of business. “A corporation that operates in many places can scarcely be deemed at home in all of them,” the justices concluded.
While the Court did acknowledge that an “exceptional case” may exist where “a corporation’s operations in a forum other than its formal place of incorporation or principal place of business may be so substantial and of such a nature as to render the corporation at home in that State,” the justices set the bar fairly high for future suits.
For a more in-depth discussion of the Court’s decision, please visit the Scarinci Hollenbeck Constitutional Law Blog.
If you have any questions about this case or would like to discuss how it may impact your company’s litigation strategies, please contact me, Christine Vanek, or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Screenshots have changed the risks of electronic communications. The screenshot problem is that messages intended for one person or a small group can be copied, forwarded, preserved, and ultimately presented to opposing counsel, regulators, journalists, customers, or a jury. Businesses should recognize that a truly private digital conversation is increasingly unreliable and ensure their policies, […]
Author: Sean M. Pena

Developers, engineering, procurement, and construction (EPC) contractors, and equipment suppliers each play a critical role in completing a BESS project. However, when equipment costs rise, deliveries are delayed, or regulations change, determining who bears the financial consequences can become contentious. Well-drafted project agreements are essential to sound risk allocation. Key Takeaways This article is Part […]
Author: Nicholas Wall

IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Author: Michael Mietlicki

When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
Author: Sean M. Pena

For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Author: Nicholas Wall

Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Author: Michael Mietlicki
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!