This sleeper Supreme Court case could be a nightmare for corporations

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A little-noticed U.S. Supreme Court case involving a Virginia railroad worker’s Pennsylvania state court suit against his onetime employer could drastically expand plaintiffs’ ability to sue corporations in states where businesses are neither headquartered nor incorporated.

that corporations are subject to suit in states where they have consented to jurisdiction as a condition of registering to conduct business.

The state justices rooted their decision in the line of U.S. Supreme Court cases that began with 1945’s, holding that International Shoe and its progeny focused jurisdictional analysis on a corporation’s contacts with the state. When the amendment was ratified in 1868, the brief said, every state had a law in place that required out-of-state corporations to consent to jurisdiction, reflecting the increasingly interstate nature of the American economy. So it cannot be, the brief argued, that “when the Fourteenth Amendment was ratified, it invalidated important statutes in every state.

 

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