by Justin DiCharia, Senior Associate
Introduction
To be sued for any reason, by any person, within a state where a corporation is not incorporated or headquartered seems an absurd fantasy following the United States Supreme Court decisions in both Goodyear Dunlop Tires Operations, S.A. v. Brown[1] and Daimler AG v. Bauman.[2] Such a fantasy drifts into the realm of reality, however, in courts where the ghost of Justice Oliver Wendell Holmes’ opinions in Pennsylvania Fire[3] and Robert Mitchell[4] live on. The 1917 Pennsylvania Fire ruling allowed an Arizona corporation to sue a Pennsylvania company in Missouri on a personal jurisdiction theory that would today equate to general jurisdiction.[5] Because the Pennsylvania corporation registered to do business within Missouri—a common statutory prerequisite to conducting business in most states—which required the corporation to appoint an agent for service for “all proceedings that may be instituted against such company in any court of this state,”[6] the Court found that the corporation took on the risk that Missouri may interpret the statute as allowing service, and then jurisdiction, for suits not arising out of contacts within the state.[7] Four years following Pennsylvania Fire, Justice Holmes wrote the majority opinion in Robert Mitchell and found that “[u]nless the state law [requiring appointment of a statutory agent] either expressly or by local construction gives to the appointment a larger scope, we should not construe it to extend to suits in respect of business transacted by the foreign corporation elsewhere.”[8] If Pennsylvania Fire and Robert Mitchell remain good law, as some courts believe,[9] statutes requiring corporations to register to do business by appointing an agent for service or explicitly requiring consent to general jurisdiction are constitutional. There is, however, substantial concern among federal and state courts over the constitutionality of these statutes following Goodyear and Daimler.[10]
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