Goodyear Tire & Rubber Co. v. Brown, 564 U.S. 915 (2011)
In 'Goodyear Tire & Rubber Co. v.
Whether a state court can assert general personal jurisdiction over foreign subsidiaries of a parent company based on the subsidiaries’ limited commercial activities in the state, unrelated to the basis of the litigation.
For a state to exert general jurisdiction over foreign corporations, those corporations must have affiliations with the state that are so continuous and systematic as to render them essentially at home in the forum state.
The Supreme Court unanimously held that North Carolina's courts could not exercise general jurisdiction over Goodyear's foreign subsidiaries, as their connections with the state were not continuous and systematic enough to be considered 'at home'.
The decision reinforced limits on general jurisdiction, stressing that foreign corporations cannot be brought to court in U.S. states solely based on the incidental circulation of their products. This case is crucial for law students understanding the boundaries of personal jurisdiction, particularly in the context of global commerce and international business operations. It delineates when a state court can hold foreign businesses accountable, influencing both U.S. and international litigation strategies.