O’Melveny Partner Matthew Close Offers These Comments on Supreme Court Ruling in McIntyre v. NicastroJuly 27, 2011
FOR IMMEDIATE RELEASE
O’Melveny & Myers LLP
WHAT: O’Melveny & Myers LLP partner Matthew Close, a member of the Securities Litigation Practice, offers these comments on today’s United States Supreme Court ruling in J. McIntyre Machinery v. Nicastro. The US Supreme Court overturned a New Jersey Supreme Court ruling, which said United Kingdom-based manufacturer J. McIntyre Machinery Ltd. could be sued in New Jersey even though the company had not sold goods or advertised in the state. The Supreme Court ruled 6-3 to bar a U.S. lawsuit by New Jersey worker Robert Nicastro, who said he was injured while operating a metal-shearing machine made by J. McIntyre Machinery, stating “stream of commerce” rule.
WHY: Close: “The Supreme Court's decision rejecting New Jersey's effort to exercise jurisdiction over a British manufacturer should have foreign companies breathing a big sigh of relief. If the decision had gone the other way, foreign companies could have been forced to defend lawsuits in any state where their products were sold by distributors or used by citizens. There was no majority opinion today, however, so Justice Kennedy's opinion does not offer solid precedent for the future. More importantly, today's decision does not settle how the Court's precedents will be applied in the e-commerce and Internet environment. Foreign companies will need to continue to litigate these issues, but today's decision will help their cause.”
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