SCOTUS to Rule on States' Jurisdiction Over Corporations

By Blake Orner, Grant & Grant

The U.S. Supreme Court has granted a Pennsylvania's plaintiff to review whether a state, through statute or otherwise, can broaden its courts' jurisdiction over companies that do business in the state, although it is not the home of their corporate office.

The petition that was granted arose from a lawsuit filed against Norfolk Southern Railroad, which was dismissed by the trial court finding that such a state statute was unconstitutional and out of line with the most recent Supreme Court precedent. The trial court’s ruling was upheld by the Pennsylvania Supreme Court.

Clearly, the Supreme Court's ruling could have a great impact on corporate litigation, both tort and otherwise, including product liability litigation. If the court ultimately rules against Norfolk Southern, it could mean that large national corporations could be sued in any state in which they are registered and sell products or services.

For more information, see this article from Reuters.

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