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Goodyear Dunlop Tires Operations, S. A. v. Brown
131 S. Ct. 2846
| SCOTUS | 2011
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Background

  • North Carolina wrongful-death suit against Goodyear USA and three foreign Goodyear subsidiaries for a bus crash outside Paris.
  • Subsidiaries incorporated in Luxembourg, Turkey, and France manufacture tires for European/Asian markets; tires differ from US-market tires.
  • Goodyear USA had NC business presence; subsidiaries had no NC registrations, offices, employees, bank accounts, or direct sales in NC.
  • Only a small percentage of petitioners’ tires reached NC via Goodyear USA affiliates, mostly distributed for niche buyers.
  • NC Court of Appeals held general jurisdiction existed based on streams of commerce; petitioners argued lack of continuous/systematic ties to NC.
  • Supreme Court reversed, holding no general jurisdiction over claims unrelated to in-state activities; emphasized distinction between general and specific jurisdiction and limits of stream-of-commerce as a basis for general jurisdiction.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether NC has general jurisdiction over foreign subsidiaries for claims unrelated to forum activities. Brown argues subsidiaries are at home via continuous activities. Goodyear subsidiaries lack continuous/systematic ties to NC. No general jurisdiction over unrelated claims.
Whether stream-of-commerce supports general jurisdiction over foreign subsidiaries. Stream of commerce shows forum connection. Flow alone cannot establish general jurisdiction for unrelated claims. Stream of commerce insufficient for general jurisdiction.
Whether the subsidiaries can be treated as a unitary business to justify jurisdiction over Goodyear. Petitioners form integrated unit with parent. Subsidiaries are separate entities; unitary treatment not urged. Forfeited; not addressed.
Distinction between general and specific jurisdiction applied to the facts. Some ties to NC support general jurisdiction. Only specific jurisdiction may apply for in-forum events. General jurisdiction not warranted; events occurred outside NC.
Whether the NC long-arm statute changes the general jurisdiction analysis. Statutory ties could broaden jurisdiction. Statute cannot override due process limits for unrelated claims. Statute does not authorize general jurisdiction here.

Key Cases Cited

  • International Shoe Co. v. Washington, 326 U.S. 310 (1945) (established minimum contacts and fair play standard for jurisdiction)
  • World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286 (1980) (purposeful availment; stream of commerce insufficient for general jurisdiction)
  • Perkins v. Benguet Consol. Mining Co., 342 U.S. 437 (1952) (example of general jurisdiction based on at-home contacts)
  • Helicopteros Nacionales de Colombia v. Hall, 466 U.S. 408 (1984) (general jurisdiction requires more than occasional purchases in forum)
  • Asahi Metal Industry Co. v. Superior Court, 480 U.S. 102 (1987) (addressed limits of stream-of-commerce in jurisdictional analysis)
  • Burger King Corp. v. Rudzewicz, 471 U.S. 462 (1985) (ongoing forum connections justify jurisdiction in contract disputes)
Read the full case

Case Details

Case Name: Goodyear Dunlop Tires Operations, S. A. v. Brown
Court Name: Supreme Court of the United States
Date Published: Jun 27, 2011
Citation: 131 S. Ct. 2846
Docket Number: 10-76
Court Abbreviation: SCOTUS