Case Study: Bauman V. DaimlerChrysler Corp.

Law360, New York (June 2, 2011, 10:19 AM EDT) -- Recently, the Ninth Circuit issued its decision in Bauman v. DaimlerChrysler Corp., ---F.3d ---, 2011 WL 1879210, a potentially transformative case that expands the use of “agency theory” to impose general jurisdiction over foreign corporations that do business in the U.S. solely through their U.S. subsidiaries.

In a decision by Justice Stephen Reinhardt, the Ninth Circuit held that personal jurisdiction existed over DaimlerChrysler Aktiengellschaft (DCAG), a German company, because DCAG maintained the right to control its wholly owned U.S. subsidiary, Mercedes-Benz USA LLC (MBUSA), such that...
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