April 26, 2017

Colorado Supreme Court: General Personal Jurisdiction Only Appropriate when Business “Essentially at Home” in Colorado

The Colorado Supreme Court issued its opinion in Clean Energy Collective, LLC v. Borrego Solar Systems, Inc. on Monday, April 17, 2017.

Constitutional Law—Personal Jurisdiction—General Jurisdiction—Corporations and Business Organizations.

The Colorado Supreme Court issued a rule to show cause to review the trial court’s  conclusion that defendant Borrego Solar Systems, Inc. is subject to general  personal jurisdiction in Colorado. Because the trial court did not assess whether Borrego was essentially at home in Colorado, the court concluded it did not fully apply the test announced in Magill v. Ford Motor Co., 2016 CO 57, 379 P.3d 1033, and therefore erred in exercising general personal jurisdiction over Borrego. Applying the complete test, the court further concluded that Borrego is not subject to general jurisdiction in this state. The rule to show cause was made absolute and the case was remanded for further proceedings.

Summary provided courtesy of The Colorado Lawyer.

Colorado Supreme Court: Corporate Defendant Not “Essentially At Home” in Colorado, Therefore Jurisdiction Did Not Attach

The Colorado Supreme Court issued its opinion in Magill v. Ford Motor Co. on Monday, September 12, 2016.

Constitutional Law—Personal Jurisdiction—General Jurisdiction—Corporations and Business Organizations—Related or Affiliated Entities.

The Supreme Court issued a rule to show cause to review the trial court’s  conclusion that defendant Ford Motor Company (Ford) is subject to general personal  jurisdiction in Colorado and that venue was proper in Denver County. The Court  concluded that, under Daimler A.G. v. Bauman, 134 S. Ct. 746 (2014), the record does not support a finding that Ford is “essentially at home” in Colorado. Therefore, Ford is not subject to general personal jurisdiction in Colorado. Because the trial court did not  determine whether Ford was subject to specific jurisdiction, the Court did not reach that issue. The Court also held that maintaining a registered agent in the state does not convert a foreign corporation to a resident. Because none of the parties reside in Denver and the accident did not occur there, venue was not appropriate in Denver County.

Summary provided courtesy of The Colorado Lawyer.