9th Circuit Court of Appeals Holds That Service of Process On a Corporation's Officer Within the State Does Not Necessarily Create Personal Jurisdiction Over the Corporation
On August 21, 2014, the 9th Circuit Court of Appeals held that service of process on a corporation's officer within the forum state does not necessarily create general personal jurisdiction over the corporation. General personal jurisdiction over a corporation can exist only when its contacts "render it essentially at home" in the state.
Under this "demanding" jurisdictional standard, an officer contracting to sell products to a California corporation, attending industry conferences, promoting products in California, and meeting with suppliers in California are not sufficient to subject a corporation to general jurisdiction in California.
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GLASS & GOLDBERG, ALC
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Woodland Hills, CA 91367.
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Marshall Goldberg
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CALPERS Position in Stockton Bankruptcy under Attack
The bankruptcy judge overseeing the Chapter 9 municipal bankruptcy case of the City of Stockton raised the possibility that CALPERS - and ostensibly the City's pensioners - may not have the claim to a one hundred percent recovery of what its pension system is owed. Read More
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The Changing Effect of Poison Pills towards Corporate Governance
For many years, especially in the 1980's and 90's, takeover bids by activist investors significantly spurred the number of mergers and acquisitions taking place in corporate America. In response, corporate boards began to employ "poison pills" - or provisions to deter or at least make costly - attempts to wrest control of a corporation from its governing majority. Read More
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Without Presumption of Prudence Pension Plan Fiduciaries Face New Landscape
Within days - practically hours - of the decision concerning the duties of fiduciary plan administrators towards pension investors, there is immediate proof available that defenses available to fiduciaries of employee stock option plans (ESOPs) will no longer provide an effective shield against suits by shareholder groups. Read More
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Arbitration as Way to Dispute Withdrawal Liability under ERISA
Pension plans, regulated by the federal statutory scheme known as ERISA ("Employment Retirement Income Security Act of 1974"), can invoke "withdrawal liability" against employers who withdraw from participating in and contributing to such pension plans. Read More
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Caterpillar Offer to Pay Damages for Ship Fire Approved by Bankruptcy Judge
In May of 2008 a fire started on a ship under construction in Mobile, Alabama. The fire raged on the ship, being built by Bender Shipbuilding and Repair Company ("Bender"), for 24 hours before it was extinguished. Read More
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U.S. Crackdown on Offshore Tax Havens Possibly Counterproductive
For years lawmakers in America sought to stem the flow of funds by citizens to offshore havens. In response, Congress passed the Foreign Account Tax Compliance Act (FATCA), to identify and recoup losses of tax revenues due to American companies' and individuals' sheltering of funds overseas. Read More
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Landlord Not Locked in to Lower Payments After Accepting Such Amount
An issue which frequently arises in commercial lease disputes was waged in the context of a Chapter 13 bankruptcy action pending in California. In the matter of In Re Cain, Case No. 13-45030 MEH (US Bankr. Ct. N.D. Calif. 2014), the bankruptcy court did not accept the Debtors' assertions that the commercial lease upon which they defaulted - and which they seek to assume - had been modified by the agreement or actions of the landlord and the tenants. Read More
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The California Court of Appeals recently affirmed a motion to quash the addition of two defendants to an existing civil action on the grounds that insufficient contacts existed for the lower court to exercise jurisdiction over these parties. Read More
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July 2014
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Glass & Goldberg
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