Cooper Tire & Rubber Company v. McCall
312 Ga. 422
Ga.2021Background:
- Tyrance McCall, a Florida resident, was severely injured in Florida when a Cooper Tire tire allegedly failed; he sued Cooper Tire in Gwinnett County, Georgia for negligence, strict product liability, and punitive damages.
- Cooper Tire is incorporated in Delaware with its principal place of business in Ohio; it conceded it was authorized/registered to do business in Georgia and maintained a registered agent.
- Cooper Tire moved to dismiss for lack of personal jurisdiction; the trial court granted the motion; the Court of Appeals reversed, relying on Allstate Ins. Co. v. Klein (holding a foreign corporation authorized to do business in Georgia is a ‘resident’ subject to general jurisdiction).
- Georgia Supreme Court granted certiorari to reconsider Klein in light of recent U.S. Supreme Court general-jurisdiction precedents (Goodyear, Daimler, etc.).
- The Georgia Supreme Court held Klein does not violate federal due process because Pennsylvania Fire (consent-by-registration) remains binding federal precedent, and declined to overrule Klein under state-law stare decisis (noting practical and statutory consequences of overruling).
- The Court nevertheless held Cooper Tire is not subject to specific jurisdiction under Georgia’s Long Arm Statute, but is presently subject to general jurisdiction in Georgia by virtue of Klein; the opinion urges the General Assembly to consider statutory revision.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Georgia may assert general jurisdiction over a foreign corporation solely because it is authorized/registered to do business in Georgia (Klein’s rule) | McCall: Registration makes Cooper Tire a Georgia "resident" per Klein, so Georgia courts have general jurisdiction. | Cooper Tire: Modern U.S. Supreme Court precedents limit general jurisdiction to place of incorporation/principal place of business; Klein conflicts with federal due process. | Court: Klein does not violate federal due process because Pennsylvania Fire (consent-by-registration) remains binding; registration can constitute consent to general jurisdiction. |
| Whether Klein should be overruled as a matter of Georgia statutory interpretation and stare decisis | McCall: Klein is correct and should stand. | Cooper Tire: Klein misread statutes and creates perverse incentives; should be overruled. | Court: Declines to overrule Klein—stare decisis factors (soundness, workability, reliance, age) favor keeping Klein to avoid a jurisdictional gap. |
| Whether Cooper Tire is subject to specific jurisdiction under Georgia’s Long Arm Statute (OCGA §§9-10-90 et seq.) | McCall: Authorized-to-do-business status supports jurisdiction. | Cooper Tire: Minimal Georgia contacts and the injury occurred in Florida; no basis for specific jurisdiction. | Court: Cooper Tire is not subject to specific jurisdiction under the Long Arm Statute; but remains subject to general jurisdiction under Klein. |
Key Cases Cited
- Pennoyer v. Neff, 95 U.S. 714 (1878) (foundational territorial approach to personal jurisdiction)
- Pennsylvania Fire Ins. Co. v. Gold Issue Mining & Milling Co., 243 U.S. 93 (1917) (state registration/agent filing can constitute consent to general jurisdiction)
- International Shoe Co. v. Washington, 326 U.S. 310 (1945) (minimum-contacts test and distinction between specific and general jurisdiction)
- Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915 (2011) (general jurisdiction requires affiliations so continuous and systematic as to render defendant "at home")
- Daimler AG v. Bauman, 571 U.S. 117 (2014) (limits general jurisdiction for nonconsenting corporations to place of incorporation or principal place of business in ordinary cases)
- Ford Motor Co. v. Montana Eighth Judicial Dist. Court, 141 S. Ct. 1017 (2021) (clarifies specific-jurisdiction analysis; distinguishes specific and general jurisdiction)
- Allstate Ins. Co. v. Klein, 262 Ga. 599 (1992) (Georgia precedent holding a foreign corporation authorized to transact business in Georgia is a "resident" subject to general jurisdiction)
