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Supreme Court of the United States - 564 U.S. 915, 180 L. Ed. 2d 796, 131 S. Ct. 2846
tl;dr:
A bus crashed in France due to product defects, and killed two young boys. Their parents sued the bus production companies in North Carolina. NC could not exercise jurisdiction over all of the companies, as they were all foreign-based.Video Summary
Case Summary
In the 2011 U.S. Supreme Court case Goodyear Dunlop Tires Operations, S.A. v. Brown, two boys' parents sued Goodyear USA and its foreign subsidiaries after a fatal bus accident in France, allegedly caused by a flawed tire from one of the subsidiaries. The legal battle took place in North Carolina, where the subsidiaries argued that the court had no authority over them.
The Supreme Court decided that the North Carolina court couldn't exercise general jurisdiction over the foreign subsidiaries, as their connections to the state weren't consistent or significant enough to consider them essentially "at home" there. The Court further explained the difference between general and specific jurisdiction, stating that only very few situations would allow a court to exercise general jurisdiction over foreign corporations.
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The case involves a wrongful death suit filed by the parents of two young soccer players from North Carolina who died in a bus accident in France caused by a defective tire manufactured by Goodyear's foreign subsidiaries. The Supreme Court of the United States held that North Carolina courts lacked general jurisdiction over the foreign subsidiaries of Goodyear, as a limited connection, such as some of their tires reaching North Carolina through the stream of commerce, is insufficient to establish the continuous and systematic affiliation necessary for the exercise of general jurisdiction. The Court has primarily focused on circumstances that justify the exercise of specific jurisdiction, particularly in cases involving single or occasional acts within the forum state, and has reduced the role of general jurisdiction in modern jurisdiction theory.
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