Subjecting Foreign Corps. To Personal Jurisdiction

Law360, New York (May 14, 2012, 1:23 PM EDT) -- A recent federal district court decision defeats a long-standing assumption that a foreign corporate parent would not be subject to personal jurisdiction for a suit seeking payment of pension liabilities merely by acquiring a U.S. subsidiary.

Background

In 2007, Japanese car-part manufacturer Asahi Tec Corp. (the parent) acquired U.S.-based Metaldyne Corp. Metaldyne subsequently filed for bankruptcy protection, but the parent declined to assume sponsorship of the Metaldyne pension plan (the plan) or to fund the plan’s outstanding liabilities.

The Pension Benefit Guaranty Corp. (PBGC) obtained a...
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