Plain-English summary
Court upholds Pennsylvania rule that companies who register there can be sued on any claim
The Court decided that a Pennsylvania statute requiring out-of-state companies that register to do business in Pennsylvania to consent to be sued in Pennsylvania on "any cause of action" does not violate the Due Process Clause. The Supreme Court vacated the Pennsylvania Supreme Court judgment and remanded the case for further proceedings consistent with the opinion.
Why this matters
The decision clarifies that states may use their own registration rules to subject out-of-state companies to their courts without running afoul of the federal Due Process Clause. That affects where injured people, consumers, or businesses can sue out-of-state companies and reduces a defendant’s ability to avoid being haled into a state forum simply by pointing to limited contacts with the state.
Who may feel it
- Out-of-state (foreign) corporations that register to do business in a state
- Plaintiffs seeking to sue registered foreign companies in state courts
- State regulators and courts enforcing business-registration rules
- Business owners and insurers involved in multistate disputes
Key questions
- Does a state law that conditions a company’s registration to do business on consenting to suit in that state violate the Due Process Clause?