US Supreme Court Upholds Pennsylvania Business Registration Law

The Supreme Court ruled a former employee of Norfolk Southern Railway Co. can proceed with his lawsuit against the company in a state it’s not based.

In a 5-4 ruling Tuesday, the court upheld a Pennsylvania law that forces companies to face litigants within its borders when they register to do business there.

The question arose in a civil suit out of Pennsylvania, which is the only state with this kind of registration-jurisdiction regime. Opponents, however, feared a ruling upholding the law would open the door for other states to pass similar statutes.

Robert Mallory filed a lawsuit in Pennsylvania court against Norfolk Southern. The Virginia resident alleged the company was liable for negligently exposing him to cancer-causing toxins when he worked for the railroad in Virginia and Ohio.

At the time, Virginia was Norfolk Southern’s principal place of business. A Pennsylvania trial court dismissed the lawsuit for lack of jurisdiction, a decision that was later affirmed by the state supreme court.

Mallory argued the court had the power to hear the case because Norfolk Southern consented to general jurisdiction when it voluntarily registered to do business in Pennsylvania. Norfolk Southern contended it was coerced by Pennsylvania into giving consent by registering to do business in the commonwealth.

The case is Mallory v. Norfolk S. Railway Co. , U.S., No. 21-1168, opinion.

Original Article

Leave a Comment