Alerts
April 21, 2016
Merely registering to do business in Delaware does not subject a non-Delaware company to the general jurisdiction of Delaware courts. 

In Genuine Parts Company v. Cepec, Delaware Supreme Court Chief Justice Leo E. Strine, Jr. writing for the majority reconciled Delaware law to the United States Supreme Court’s decision in Daimler AG v. Bauman. The Chief Justice framed the issue on appeal as “whether Delaware may exercise general jurisdiction over a foreign corporation for claims having nothing to do with Delaware, as a price for the corporation agreeing simply to be able to do business in Delaware.” The Court held that in today’s world of national and international trade, registering and doing business in Delaware cannot equate to consenting to “personal jurisdiction in any cause of action, however unrelated to the foreign corporation‘s activities in Delaware.”

To read the full alert, please click here.