Supreme Court Ruling in Pharma Case Offers Predictability for In-House Counsel
The decision can offer legal departments welcome predictability and limits when it comes to where companies should be expected to go on the defensive, attorneys say.
June 20, 2017 at 03:12 PM
14 minute read
On Monday, the U.S. Supreme Court handed down a major decision on the scope of personal jurisdiction for businesses, providing clarity on where a corporation can expect to be haled into court and potentially limiting forum-shopping.
The decision can offer legal departments welcome predictability and limits when it comes to where companies should be expected to go on the defensive, according to attorneys, including a prominent in-house lawyer from GlaxoSmithKline.
The case, Bristol-Myers Squibb v. Superior Court of California, involves a group of more than 600 plaintiffs, most of whom are not from California, who sued in California state court, claiming that the pharmaceutical giant's blood-thinning drug Plavix damaged their health. For a case such as this one, two types of personal jurisdiction are typically considered: general and specific. General jurisdiction for a corporation has been interpreted to mean where it is “at home.” Specific jurisdiction, on the other hand, relates to a defendant's contacts with a particular forum and requires a connection between the forum and the claims at issue in litigation.
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