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384 F. Supp. 3d 532
E.D. Pa.
2019
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Background

  • Plaintiff Jackie Sullivan sued 48 defendants for asbestos-related wrongful death; suit removed to federal court by Huntington Ingalls, Inc. (HIC).
  • Alleged asbestos exposure occurred aboard the U.S.S. Blakely (built in Louisiana); no exposure relevant to HIC occurred in Pennsylvania.
  • HIC is incorporated and has its principal place of business in Virginia; not "at home" in Pennsylvania.
  • Plaintiff relied on Pennsylvania statutes (15 Pa.C.S. § 411 and 42 Pa.C.S. § 5301) that require foreign corporations to register to do business and state that registration "shall constitute a sufficient basis" for general personal jurisdiction.
  • The central legal dispute: whether Pennsylvania’s registration scheme (which conditions the privilege of doing business on consent to general jurisdiction) survives the Supreme Court’s Daimler rule limiting general jurisdiction to fora where a corporation is "at home."

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Pennsylvania registration statutes validly confer general jurisdiction over HIC Registration under §§411/5301 constitutes consent to general jurisdiction; HIC registered (or its predecessors did) Daimler limits general jurisdiction to where a corporation is "at home," and HIC is not "at home" in PA Court: Pa. statutory scheme is unconstitutional; cannot supply general jurisdiction over HIC
Whether statutory consent by registration is "knowing and voluntary" Consent is knowing because §5301 explicitly states registration yields jurisdiction Consent is involuntary because registration is mandatory to do business; coercive choice Court: Even if knowing, consent is functionally involuntary and thus invalid under due process
Whether pre-Daimler Third Circuit precedent (Bane) remains binding Bane supports that registration = consent to general jurisdiction Daimler supersedes Bane’s contacts-based rationale Court: Bane is irreconcilable with Daimler and no longer controlling for general jurisdiction
Whether any other basis for jurisdiction exists over HIC Plaintiff did not assert specific jurisdiction or exceptional circumstances HIC: no contacts with PA and not "at home" here Court: No specific jurisdiction, no voluntary consent, no other exception; personal jurisdiction lacking; HIC dismissed

Key Cases Cited

  • Daimler AG v. Bauman, 571 U.S. 117 (limits general jurisdiction to forums where corporation is "at home")
  • Bane v. Netlink, Inc., 925 F.2d 637 (3d Cir. 1991) (pre-Daimler: registration in PA treated as consent to general jurisdiction)
  • Int'l Shoe Co. v. Washington, 326 U.S. 310 (1945) (minimum contacts framework origin)
  • Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915 (distinguishes specific vs. general jurisdiction; defendant must be "at home" for general jurisdiction)
  • Brown v. Lockheed Martin Corp., 814 F.3d 619 (2d Cir.) (statutory registration does not implicitly confer general jurisdiction)
  • Genuine Parts Co. v. Cepec, 137 A.3d 123 (Del. 2016) (Delaware declined to treat registration as consenting to general jurisdiction post-Daimler)
  • Koontz v. St. Johns River Water Mgmt. Dist., 570 U.S. 595 (unconstitutional conditions doctrine: government may not condition a benefit on surrender of constitutional rights)
Read the full case

Case Details

Case Name: Jackie L. Sullivan v. A. W. Chesterton, Inc. (In re Asbestos Products Liability Litigation (No. VI))
Court Name: District Court, E.D. Pennsylvania
Date Published: Jun 6, 2019
Citations: 384 F. Supp. 3d 532; Consolidated Under MDL DOCKET NO. 875; Case No. 18-3622
Docket Number: Consolidated Under MDL DOCKET NO. 875; Case No. 18-3622
Court Abbreviation: E.D. Pa.
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