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Due Process Considerations in Jurisdictional Questions: A Dead Issue in PA?
The Pennsylvania Superior Court recently ruled that Pennsylvania has jurisdiction over any corporation that registers to do business in the state, upholding the consent provision of the Long Arm Statute.
By Curt Schroder, Executive Director, PCCJR
Pennsylvania’s Long-Arm Statute, 42 Pa. C.S.A. §5301(a), imposes “general” jurisdiction over any foreign corporation (out of state) that has merely registered to do business in Pennsylvania. This so-called “consent jurisdiction” is the subject of an appeal to the Superior Court in the case Mallory v. Norfolk Southern Railway Co., a case that should be watched closely by every corporation registered to do business in Pennsylvania.
In the lower court, Judge New of the Philadelphia Court of Common Pleas, held that the Long Arm Statute as applied by the Plaintiff violated constitutional due process as determined by the U.S. Supreme Court in Daimler AG v. Bauman, 571 U.S. 117 (2014). The Daimler court specifically rejected, as “unacceptably grasping,” legal theories that “approve the exercise of general jurisdiction in every State in which a corporation engages in a substantial, continuous, and systematic course of business.” [Read more…] about PCCJR Update – October 29, 2018