Tuesday, September 18, 2018

PA Eastern Federal District Court Finds Long Arm Statute for Personal Jurisdiction Not Abrogated

In the case of Allstate Insurance Company v. Electrolux Home Products, Inc., No. 5:18-00699(E.D. Pa. Aug. 3, 2018 Leeson, J.), the court granted a Motion to Sever and Transfer a portion of the case.

The court ruled that the Plaintiff’s Complaint, joining together 86 separate subrogated incidents from many different states, could not stand before the Eastern District Federal Court.  

This decision is notable in that the court reaffirmed the rule that registration to do business in Pennsylvania, without more, is sufficient to establish general personal jurisdiction over a corporate Defendant.

Judge Leeson also reaffirmed the precedent holding that cases interpreting the Pennsylvania long arm statute in this regard have not be abrogated by more recent United States Supreme Court precedent.  

Relative to the claims in this matter, which arose under different states’ laws, the court felt that the claims should be severed.   After severance, the cases are considered to be separate cases, and many of them in this matter were found to fail to satisfy the diversity amount in controversy requirement, which necessitated the dismissal of those claims.   The remaining valid non-Pennsylvania cases  were ordered to be transferred to a more appropriate forum. 

Anyone wishing to review a copy of this case may click this LINK.  The Court's Order can be viewed HERE

I send thanks to Attorney James M. Beck of the Philadelphia office of the Reed Smith law firm for bringing this case to my attention.

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