Decoding the Shift in Lawsuit Jurisdiction: Top Takeaways from Mallory v. Norfolk Southern Railway Company
By Anne Marie O’Brien, Of Counsel, Smith Pauley
Staying in the forefront of legal changes that may affect our clients is an inherent part of my job as an experienced Litigation Attorney at Smith Pauley. Today, I am deconstructing the implications of a recent landmark U.S. Supreme Court ruling in litigation: Mallory v. Norfolk Southern Railway Company.
Mallory addresses personal jurisdiction for corporations and where they can be sued by plaintiffs. Jurisdiction is a key factor in lawsuits. A liberal jurisdiction with a history of large jury verdicts can have serious consequences for companies who may be facing lawsuits there. So, let's get down to business and unpack top takeaways from this landmark ruling.
Implications for Corporations:
Before Mallory, a company generally could be sued in states where the alleged incident giving rise to the harm occurred, or where defendant is “at home.” A corporation is generally considered “at home” in the place of its incorporation and the place of its principal place of business. This prior rule on jurisdiction narrowly dictated the situs of lawsuits against corporations. It also greatly reduced forum shopping by plaintiffs.
Now the Mallory v. Norfolk Southern Railway Company decision opens new doors for potential plaintiffs. Under Mallory, if a State has a statute that allows jurisdiction over a corporation – even if the corporation is not at home and if the incident did not occur in that State – a plaintiff can sue the corporation there. This new ruling may well translate into more lawsuits against corporations in liberal jurisdictions.
Proactive Risk Management is Crucial:
While this may appear as a hurdle for corporations, it also serves as a wake-up call to review legal strategies and business operations across multiple states. It emphasizes the need for proactive management of potential legal risks and ensuring compliance with local laws to mitigate adverse impacts.
This ruling, indeed, is a curveball in the world of corporate litigation. As your legal allies, our team at Smith Pauley is ready to guide you through these shifting landscapes, delivering comprehensive advice and tailored strategies.
We're here to help our clients understand these complex legal changes, armed with expert knowledge, strategic prowess, and the latest insights from cases like Mallory v. Norfolk Southern Railway Company.
Do you have questions about how this ruling could affect your business, or need to discuss other legal matters? Don't hesitate to reach out to our team at Smith Pauley. We're here to assist and guide you in these ever-changing times. You can contact us at 402-392-0101.
Anne Marie is of counsel at Smith Pauley. She has established herself as a trusted and respected attorney in the areas of insurance law, civil litigation, and transportation law. Anne Marie has been recognized as a “Lawyer of Distinction,” a title awarded to less than 1% of lawyers nationwide. She also is active in numerous community and professional organizations, including serving as past president of the Board of Catholic Charities. Her current positions include serving on the board of the Werner Institute of Negotiation and Dispute Resolution at Creighton University School of Law and president of the National Association of Railroad Trial Lawyers.