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19-368 FORD MOTOR CO. V. MONTANA EIGHTH DISTRICT COURT DECISION BELOW: 443 P.3d 407 CONSOLIDATED WITH 19-369 FOR ONE HOUR ORAL ARGUMENT. PRESS RELEASE OF APRIL 3, 2020 IN KEEPING WITH PUBLIC HEALTH GUIDANCE IN RESPONSE TO COVID-19, THE COURT WILL POSTPONE THE ORAL ARGUMENTS CURRENTLY SCHEDULED FOR THE APRIL SESSION. 4/13/2020: ARGUMENT TO BE RESCHEDULED FOR THE OCTOBER TERM 2020 CERT. GRANTED 1/17/2020 QUESTION PRESENTED: The Due Process Clause permits a state court to exercise specific personal jurisdiction over a non-resident defendant only when the plaintiff’s claims “arise out of or relate to" the defendant's forum activities. Burger King Corp. v. Rudzewicz, 471 U.S. 462, 472 (1985) (internal quotation marks omitted). The question presented is: Whether the “arise out of or relate to" requirement is met when none of the defendant's forum contacts caused the plaintiff’s claims, such that the plaintiff’s claims would be the same even if the defendant had no forum contacts. LOWER COURT CASE NUMBER: OP 19-0099
In the case of Ford Motor Company v. Montana Eighth Judicial District Court, 2020, the U.S Supreme Court ruled in favor of plaintiffs from Minnesota and Montana who had filed lawsuits against Ford for injuries sustained in car accidents involving their vehicles. The court held that even though the specific cars involved were not manufactured or initially sold in these states, Ford's extensive business activities including advertising, selling and servicing similar models there was enough to establish jurisdiction over it. This ruling rejected Ford’s argument that a state could only exercise jurisdiction if its activities within the state had given rise to plaintiff’s claims i.e., if there was a causal link between its local conduct and those claims. Instead, it affirmed that so long as a company like Ford systematically served a market for its products in states such as Montana and Minnesota (which included identical versions of products causing injury), it could be sued there under product liability laws when one of those products causes injury.
In the dissenting opinion for Ford Motor Company v. Montana Eighth Judicial District Court, Justice Gorsuch, joined by Justice Thomas, argued that the majority's decision expanded beyond precedent and blurred jurisdictional lines. They contended that a state court should only have jurisdiction over an out-of-state corporation if it could show that its in-state activities directly caused the plaintiff’s claims. The justices disagreed with the majority's view of causation as too broad and inconsistent with due process principles. They expressed concern about potential consequences of this ruling on interstate commerce and federalism because it might encourage forum shopping or expose companies to litigation in any state where their products are sold regardless of whether they intentionally targeted those markets.