Title: Finding a 'Home' for Unincorporated Entities Post-Daimler Ag V. Bauman
Abstract:In Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915 (2011), the Supreme Court reshaped general personal jurisdiction (also called “all-purpose jurisdiction”), announcing that defendants a...In Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915 (2011), the Supreme Court reshaped general personal jurisdiction (also called “all-purpose jurisdiction”), announcing that defendants are subject to general personal jurisdiction where their contacts were “so ‘continuous and systematic’ as to render them essentially at home in the forum State.” The Court reaffirmed this “at home” test in Daimler AG v. Bauman, 571 U.S. 117 (2014), and clarified where individuals and corporations were typically “at home.” To date, the Court has never expressly applied this new vision of general personal jurisdiction to unincorporated entities, leading to confusion in the federal district courts.
This article examines this gap in the law: Where are unincorporated entities subject to general personal jurisdiction? Part I of this article provides context by examining the three key, overlapping jurisdictional concepts (subject matter jurisdiction, personal jurisdiction, and venue) and reviewing how these concepts apply to individuals and corporations. Part II focuses on unincorporated entities and examines the possible tests for general personal jurisdiction proffered by dicta from the Supreme Court and suggested by lower courts. Part III sets out our recommended approach for where unincorporated entities are subject to general personal jurisdiction, that is: An unincorporated entity (such as an LLC, LLP, general partnership, or limited partnership) is subject to general jurisdiction where its contacts are so constant and pervasive as to render it essentially “at home” in the forum state. With respect to an unincorporated entity, the place of formation and the principal place of business are paradigm bases for general jurisdiction.
The rule is not that an unincorporated entity may be subject to general jurisdiction only in a forum where it was formed or has its principal place of business; it is simply that those places are paradigm all-purpose forums. In some circumstances, the contacts of an entity’s members with a forum may be so constant and pervasive as to render the unincorporated entity “also at home” in that forum as well.
We argue that this test is consistent with lower court holdings, with Supreme Court dicta, and with the logic of the Court’s general jurisdiction jurisprudence. Finally, in Section III.D this article provides guidance to lower courts in applying the proposed test to various unincorporated entities.Read More
Publication Year: 2020
Publication Date: 2020-09-11
Language: en
Type: article
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