Supreme Court: Business Registration Statutes Don't Violate Due Process

A recent decision by the U.S. Supreme Court will encourage forum shopping by enterprising plaintiffs, particularly to out-of-state jurisdictions where a defending business has few or no contacts. In Mallory v. Norfolk Southern Railway Co., 600 U.S. ____ (2023), the Supreme Court rejected a due process clause challenge to Pennsylvania's corporate registration law, which requires out-of-state companies registering to do business there to concede personal jurisdiction and appear in the state on "any cause of action" against them. While acknowledging the "federalism implications of one State's assertion of jurisdiction over the corporate residents of another," the Court found controlling the fact of consent—even if procured by statute.