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Navigating the Stream of Commerce: Purposeful Availment in the Wake of Ford | Butler Snow LLP

We recently covered the United States Supreme Court’s troubling decision in Ford Motor Company v. Montana Eighth Judicial District Court, 141 S. Ct. 1017 (2021), which has broadened the reach of specific personal jurisdiction for many product manufacturers.  In an 8–0 decision, the Court held that some companies (like Ford) may be subject to specific jurisdiction in any U.S. forum where a product-related injury occurs, regardless of whether the defendant’s contacts with the forum were a “but for” cause of the injury.  Though the Court attempted to limit its analysis to the “arise out of or relate to” prong of the specific jurisdiction test, the decision’s reach extends uncomfortably beyond that provision.  Of particular concern is its impact on another key element of the specific jurisdiction analysis:  purposeful availment.

Not Too Specific: Personal Jurisdiction After Ford Motor Co v Montana Eighth Judicial District Court | Miles & Stockbridge P C

The Supreme Court’s latest foray into personal jurisdiction – Ford Motor Co. v. Montana Eighth Judicial District Court – seems to raise more questions than answers regarding the contours of specific jurisdiction. A curious result, given the eight-member panel 1 unanimously agreed that Ford was subject to specific jurisdiction in the forums – Montana and Minnesota – where the underlying suits were filed. Writing for the five-member majority, Justice Kagan reached this conclusion by recognizing that specific jurisdiction may exist where a defendant’s extensive activity is “related to” the plaintiff’s claims, even if not the but-for cause. The concurring opinions heavily criticized the majority’s “new test,” lamenting that the majority offered lower courts and litigants little guidance for discerning the limits of “related to” specific jurisdiction.

How Will Supreme Court s New Decision on Personal Jurisdiction Impact Manufacturers? | Alston & Bird

What comes next? On March 25, 2021, the U.S. Supreme Court broadened the reach of specific personal jurisdiction by finding that Ford Motor Co. can be sued in Montana and Minnesota for vehicles that were “designed, manufactured, and first sold” out of state. The Supreme Court held that “[w]hen a company … serves a market for a product in a State and that product causes injury in the State to one of its residents, the State’s courts may entertain the resulting suit.” The decision could mark the beginning of new cases where the underlying claims only “relate to” a defendant’s activities in the state, or the decision could further confuse lower courts that try to determine what activity relates to the underlying claims.

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