As published in Reuters – By Philip Federico and Chase Brockstedt
On July 27, 2021, the U.S. Supreme Court’s decision in Ford Motor Company v. Montana Eighth Judicial District Court reignited attention on personal jurisdiction disputes.
In recent years, product liability and mass tort cases often leaned in favor of defendants, with rulings limiting jurisdiction over out-of-state corporations. This led many plaintiffs to hesitate in pursuing claims against such defendants, wary of wasting resources on a likely dismissal.
The Ford decision changed that dynamic, offering clarity and curbing corporate efforts to restrict where they can be sued.
Understanding Specific vs. General Jurisdiction
General jurisdiction applies only when a company is incorporated or headquartered in a state. Specific jurisdiction, however, allows lawsuits if a defendant’s actions in the forum state directly relate to the claim.
While proving specific jurisdiction can be challenging—especially when corporations hide behind complex subsidiary structures—it’s far from impossible.
How States Apply Long-Arm Statutes
Many states extend specific jurisdiction through “long-arm” statutes, allowing lawsuits against out-of-state corporations when they:
Conduct business or perform work in the state.
Cause injury through in-state acts or omissions.
Derive revenue from the state.
Own or use property in the state.
These provisions can pierce even well-crafted corporate shields—especially if company culture or decision-making overlaps between parent companies and subsidiaries.
The Power of Jurisdiction Discovery
Jurisdiction discovery involves demanding evidence that the defendant’s in-state activities contributed to the cause of action. Although often underused due to cost and time, it can uncover critical links.
In one notable case (Cuppels et al. v. Mountaire Corporation), discovery revealed board meeting minutes, tax records, and flight logs for corporate leaders—helping secure a $205 million settlement.
Building the Case: Foundational Documents Matter
Attorneys shouldn’t underestimate basic corporate records, such as:
Board meeting minutes & agendas
Financial statements
Property ownership documents
Campaign contributions & lobbying records
With expert analysis, these documents can trace financial flows, show executive overlap, and reveal the parent company’s control over subsidiaries.
Public Records as a Starting Point
Publicly available state-level documents can offer a head start—especially when discovery is stalled. These include:
Property and mortgage records
FOIA requests for travel logs
Political contribution databases
Such information helps demonstrate jurisdictional ties and undercut the defense’s claim of separation.
Final Takeaway
Time and persistence are crucial in personal jurisdiction litigation. While it may seem tedious, early groundwork based on public records and strategic discovery can make the difference between dismissal and victory.
The Ford Motor Co. ruling reinforces that personal jurisdiction is a powerful tool for plaintiffs—one worth pursuing with thorough preparation.
If you need guidance on jurisdictional issues or complex litigation, contact our firm for a consultation.
Phil Federico is a partner at Brockstedt Mandalas Federico where he helps lead the Mass Tort / Class Action and Environmental Law practices, transitioning into these areas after beginning his career as a medical malpractice litigator.
Phil has led and been involved in historic and groundbreaking litigation with verdicts and settlements exceeding one billion dollars.
Loading...