Brief Fact Summary.
Two American boys are killed in a bus accident in France and the boys’ parents try to sue an foreign American tire company subsidiary
Synopsis of Rule of Law.
A state court may not exercise general jurisdiction over a foreign defendant unless the defendant engages in continuous and systematic activities within the forum state.
As we have said, a corporationâs âcontinuous activity of some sorts within a state is not enough to support the demand that the corporation be amenable to suits unrelated to that activity,â.View Full Point of Law
Two boys from North Carolina died in a bus accident in Paris. Their parents sued Goodyear USA, an Ohio corporation, and 3 Goodyear European subsidiaries in a North Carolina court. The parents claimed that there was a defective tire, manufactured by Goodyear’s subsidiary in Turkey, that caused the accident. The Turkish subsidiary did not sell tires directly to the U.S., but some reached the U.S. through the stream of commerce.
Can a forieng subsidiary of an American corporation be sued in a state court if the subsidiary does not engage in any activity in the state?
A forum state cannot exercise jurisdiction over a foreign subsidary of an American corporation if the subsidiary does not engage in continuous activities in the forum state nor in actions in the forum state from which the cause of action arises. Judgement of the North Carolina Court of Appeals is reversed.