Bristol-Myers Squibb Co. v. Superior Court of California, San Francisco County | |
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Argued April 25, 2017 Decided June 19, 2017 | |
Full case name | Bristol-Myers Squibb Company, Petitioner v. Superior Court of California, San Francisco County, et al. |
Docket no. | 16-466 |
Citations | 582 U.S. ___ ( more ) 137 S. Ct. 1773; 198 L. Ed. 2d 395 |
Opinion announcement | Opinion announcement |
Case history | |
Prior | 1 Cal.5th 783, 206 Cal. Rptr. 3d 636, 377 P.3d 874 (2016); cert. granted, 137 S. Ct. 827 (2017). |
Court membership | |
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Case opinions | |
Majority | Alito, joined by Roberts, Kennedy, Thomas, Ginsburg, Breyer, Kagan, Gorsuch |
Dissent | Sotomayor |
Laws applied | |
U.S. Const. amend. XIV |
Bristol-Myers Squibb Co. v. Superior Court of California, San Francisco County, 582 U.S. ___ (2017), was a United States Supreme Court case in which the Court held that California courts lacked personal jurisdiction over the defendant on claims brought by plaintiffs who are not California residents and did not suffer their alleged injury in California. [1] It is part of a group of six cases decided since 2011 that have greatly changed the application of personal jurisdiction.
Bristol-Myers is a large pharmaceutical company that is incorporated in Delaware and has its principal place of business in New York. The company manufactured and distributed the blood-thinning drug Plavix. A group of people who claimed they had been injured by taking Plavix, consisting of 86 California residents and 592 residents of other states, sued Bristol-Myers in California. Bristol-Myers sought to dismiss the claims of the non-California resident plaintiffs on the ground that the courts of California, a state where the company was neither incorporated nor headquartered, lacked personal jurisdiction over the company with respect to claimants who were not injured in California.
The California courts initially held that California had "general jurisdiction" over Bristol-Myers based on the company's extensive business ties with California. Subsequently, the U.S. Supreme Court decided Daimler AG v. Bauman , which held that a corporation is ordinarily subject to general jurisdiction only in its state of incorporation and the state where it maintains its principal Place of business. Following Daimler, the California courts determined that they did not have general jurisdiction over Bristol-Myers. However, the California Supreme Court upheld specific jurisdiction in this case, as to both the resident and non-resident plaintiffs.
The U.S. Supreme Court granted certiorari to review the California Supreme Court's decision.
Associate Justice Samuel Alito authored the majority opinion, which was joined by all but one of the Justices. [1]
The Court held that California state courts did not have jurisdiction over Bristol-Myers with respect to the non-residents' claims. Specific jurisdiction may exist only where the events underlying the lawsuit arise out of or relate to the defendant's contact with the forum state. Here, the non-resident plaintiffs were not prescribed Plavix in California, did not ingest it in California, and were not injured in California, nor was the drug manufactured in the state. The necessary affiliation between these plaintiffs' claims and the defendant's activities within the forum were thus lacking. The facts that other plaintiffs purchased the drug and were injured in California, and that Bristol-Myers engages in extensive research activities in California unrelated to Plavix, were irrelevant.
The Court concluded that its decision did not prevent the members of the plaintiff class from pursuing their claims. The options included bringing suit on behalf of all the claimants in Delaware or New York, or separate suits in the various states where different claimants reside. In addition, because the decision was based on application of the Due Process Clause to state courts, the Court reserved decision on whether the same jurisdictional limitations would apply to an action brought in federal court.
The key issue was that there was not a direct relation between the nonresidents' claims and the activities of Bristol-Meyers. Since the nonresidents had not bought Plavix in California, nor did they suffer the ill-effects of Plavix there, there could be no direct relation. [2]
Justice Sonia Sotomayor dissented. She found nothing unfair or contrary to due process in allowing the claims of a nationwide class of people allegedly injured by the same conduct of the same defendant, which is a Fortune 500 pharmaceutical company doing business nationwide, to be brought in a single litigation. The jurisdictional limitations announced in this case, in Sotomayor's view, would result in unnecessary multiple litigation as cases are brought in multiple states, and may deter some injured parties from pursuing their claims at all. [3]
The case has further increased the difficulty for plaintiffs to succeed in tort cases, especially mass tort cases. Northeastern University law professor Stephen Subrin and colleagues questions the value of making plaintiffs file in their own state, echoing Sotomayor. He further wonders if the majority's alleged cause of "interstate federalism" was sufficient justification for a verdict that strongly favored well-resourced companies over injured plaintiffs. [2]
Berkeley law professor Andrew Bradt writes that the decision does much to favor companies, by further hindering class action and mass-joinder suits (to which the Federal judiciary is already quite hostile). He goes on to add that unfortunately the decision has still not clarified the extremely complex subject of personal jurisdiction. [4]
University of Mississippi professor Michael Hoffheimer cites the case as one of six that have been part of a "stealth revolution" around personal jurisdiction. He argues that the Court, under the guise of following precedent, has actually greatly changed the law at the expense of plaintiffs and in the name of lessening the power of the courts. He argues that this does not solve the underlying problem: that personal jurisdiction remains one of the hardest to understand and apply aspects of American law. Hoffheimer believes the Court's actions are an ill-informed attack on the legitimacy of lower courts, which reduces public trust in them. [5]
Richard D. Freer of Emory University also cites the case as one of six Supreme Court cases that have greatly changed personal jurisdiction, starting in 2011 after a 21-year hiatus on personal jurisdiction cases. He emphasizes that the Court has devalued judicial discretion, and notes that the Court's actions in the six cases has been extensively criticized by legal scholars. [6]
A class action, also known as a class action lawsuit, class suit, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group. The class action originated in the United States and is still predominantly an American phenomenon, but Canada, as well as several European countries with civil law, have made changes in recent years to allow consumer organizations to bring claims on behalf of consumers.
At common law, damages are a remedy in the form of a monetary award to be paid to a claimant as compensation for loss or injury. To warrant the award, the claimant must show that a breach of duty has caused foreseeable loss. To be recognized at law, the loss must involve damage to property, or mental or physical injury; pure economic loss is rarely recognized for the award of damages.
Personal jurisdiction is a court's jurisdiction over the parties, as determined by the facts in evidence, which bind the parties to a lawsuit, as opposed to subject-matter jurisdiction, which is jurisdiction over the law involved in the suit. Without personal jurisdiction over a party, a court's rulings or decrees cannot be enforced upon that party, except by comity; i.e., to the extent that the sovereign which has jurisdiction over the party allows the court to enforce them upon that party. A court that has personal jurisdiction has both the authority to rule on the law and facts of a suit and the power to enforce its decision upon a party to the suit. In some cases, territorial jurisdiction may also constrain a court's reach, such as preventing hearing of a case concerning events occurring on foreign territory between two citizens of the home jurisdiction. A similar principle is that of standing or locus standi, which is the ability of a party to demonstrate to the court sufficient connection to and harm from the law or action challenged to support that party's participation in the case.
Res ipsa loquitur is a doctrine in common law and Roman-Dutch law jurisdictions under which a court can infer negligence from the very nature of an accident or injury in the absence of direct evidence on how any defendant behaved in the context of tort litigation. Although specific criteria differ by jurisdiction, an action typically must satisfy the following elements of negligence: the existence of a duty of care, breach of appropriate standard of care, causation, and injury. In res ipsa loquitur, the existence of the first three elements is inferred from the existence of injury that does not ordinarily occur without negligence.
A tort is a civil wrong, other than breach of contract, that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act. Tort law can be contrasted with criminal law, which deals with criminal wrongs that are punishable by the state. While criminal law aims to punish individuals who commit crimes, tort law aims to compensate individuals who suffer harm as a result of the actions of others. Some wrongful acts, such as assault and battery, can result in both a civil lawsuit and a criminal prosecution in countries where the civil and criminal legal systems are separate. Tort law may also be contrasted with contract law, which provides civil remedies after breach of a duty that arises from a contract. Obligations in both tort and criminal law are more fundamental and are imposed regardless of whether the parties have a contract.
A lawsuit is a proceeding by one or more parties against one or more parties in a civil court of law. The archaic term "suit in law" is found in only a small number of laws still in effect today. The term "lawsuit" is used with respect to a civil action brought by a plaintiff who requests a legal remedy or equitable remedy from a court. The defendant is required to respond to the plaintiff's complaint or else risk default judgment. If the plaintiff is successful, judgment is entered in favor of the plaintiff, and the Court may impose the legal and/or equitable remedies available against the defendant (respondent). A variety of court orders may be issued in connection with or as part of the judgment to enforce a right, award damages or restitution, or impose a temporary or permanent injunction to prevent an act or compel an act. A declaratory judgment may be issued to prevent future legal disputes.
Trespass is an area of tort law broadly divided into three groups: trespass to the person, trespass to chattels, and trespass to land.
The Alien Tort Statute, also called the Alien Tort Claims Act (ATCA), is a section in the United States Code that gives federal courts jurisdiction over lawsuits filed by foreign nationals for torts committed in violation of international law. It was first introduced by the Judiciary Act of 1789 and is one of the oldest federal laws still in effect in the U.S.
The tort of negligent infliction of emotional distress (NIED) is a controversial cause of action, which is available in nearly all U.S. states but is severely constrained and limited in the majority of them. The underlying concept is that one has a legal duty to use reasonable care to avoid causing emotional distress to another individual. If one fails in this duty and unreasonably causes emotional distress to another person, that actor will be liable for monetary damages to the injured individual. The tort is to be contrasted with intentional infliction of emotional distress in that there is no need to prove intent to inflict distress. That is, an accidental infliction, if negligent, is sufficient to support a cause of action.
In the law of the United States, diversity jurisdiction is a form of subject-matter jurisdiction that gives United States federal courts the power to hear lawsuits that do not involve a federal question. For a federal court to have diversity jurisdiction over a lawsuit, two conditions must be met. First, there must be "diversity of citizenship" between the parties, meaning the plaintiffs must be citizens of different U.S. states than the defendants. Second, the lawsuit's "amount in controversy" must be more than $75,000. If a lawsuit does not meet these two conditions, federal courts will normally lack the jurisdiction to hear it unless it involves a federal question, and the lawsuit would need to be heard in state court instead.
In tort law, a duty of care is a legal obligation that is imposed on an individual, requiring adherence to a standard of reasonable care to avoid careless acts that could foreseeably harm others, and lead to claim in negligence. It is the first element that must be established to proceed with an action in negligence. The claimant must be able to show a duty of care imposed by law that the defendant has breached. In turn, breaching a duty may subject an individual to liability. The duty of care may be imposed by operation of law between individuals who have no current direct relationship but eventually become related in some manner, as defined by common law.
Rylands v Fletcher (1868) LR 3 HL 330 is a leading decision by the House of Lords which established a new area of English tort law. It established the rule that one's non-natural use of their land, which leads to another's land being damaged as a result of dangerous things emanating from the land, is strictly liable.
Personal injury is a legal term for an injury to the body, mind, or emotions, as opposed to an injury to property. In common law jurisdictions the term is most commonly used to refer to a type of tort lawsuit in which the person bringing the suit has suffered harm to their body or mind. Personal injury lawsuits are filed against the person or entity that caused the harm through negligence, gross negligence, reckless conduct, or intentional misconduct, and in some cases on the basis of strict liability. Different jurisdictions describe the damages in different ways, but damages typically include the injured person's medical bills, pain and suffering, and diminished quality of life.
In conflict of laws, the choice of law rules for tort are intended to select the lex causae by which to determine the nature and scope of the judicial remedy to claim damages for loss or damage suffered.
Long-arm jurisdiction is the ability of local courts to exercise jurisdiction over foreign defendants, whether on a statutory basis or through a court's inherent jurisdiction. This jurisdiction permits a court to hear a case against a defendant and enter a binding judgment against a defendant residing outside the jurisdiction concerned.
World-Wide Volkswagen Corp v. Woodson, 444 U.S. 286 (1980), is a United States Supreme Court case involving strict products liability, personal injury and various procedural issues and considerations. The 1980 opinion, written by Justice Byron White, is included in the first-year civil procedure curriculum at nearly every American law school for its focus on personal jurisdiction.
Personal jurisdiction in Internet cases refers to a growing set of judicial precedents in American courts where personal jurisdiction has been asserted upon defendants based solely on their Internet activities. Personal jurisdiction in American civil procedure law is premised on the notion that a defendant should not be subject to the decisions of a foreign or out of state court, without having "purposely availed" himself of the benefits that the forum state has to offer. Generally, the doctrine is grounded on two main principles: courts should protect defendants from the undue burden of facing litigation in an unlimited number of possibly remote jurisdictions, and courts should prevent states from infringing on the sovereignty of other states by limiting the circumstances under which defendants can be "haled" into court.
Daimler AG v. Bauman, 571 U.S. 117 (2014), is a United States Supreme Court case in which the Court answered whether an American court may exercise jurisdiction over a foreign company based on the fact that a subsidiary of the company acts on its behalf in the jurisdictional state. The court held that an American company cannot be sued for conduct occurring outside the United States and American courts do not have jurisdiction of such a claim.
BNSF Railway Co. v. Tyrrell, 581 U.S. ___, 137 S. Ct. 1549 (2017), was a United States Supreme Court case in which the Court held that the Montana courts lacked personal jurisdiction over a railroad that was not incorporated in Montana and did not have its principal place of business in Montana, even though the railroad had more than 2,000 miles of track and 2,000 employees within Montana. It was the first Supreme Court case argued before a Court that included newly appointed Associate Justice Neil Gorsuch.
Jesner v. Arab Bank, PLC, No. 16-499, 584 U.S. ___ (2018), was a case from the United States Supreme Court which addressed the issue of corporate liability under the Alien Tort Statute (ATS). Plaintiffs alleged that Arab Bank facilitated terrorist attacks by transferring funds to terrorist groups in the Middle East, some of which passed through Arab Bank's offices in New York City.
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