Personal Jurisdiction Over The Parent Company

Due to the complex chain of nursing home ownership, claims often are litigated in federal court. In some cases there can be an issue with establishing personal jurisdiction over the parent company of the nursing home. In order to establish personal jurisdiction a couple things must be present. First is that the defendant must be, “amenable to service of process under the forum state’s laws.”[1] Second the “[court] must assess whether [it]’s assertion of jurisdiction under the[] laws comports with the requirements of due process.”[2] Missouri has a long-arm statute which gives it personal jurisdiction in most cases (including instances where the parent company makes a business transaction- operating a nursing home- in the state).[3] Kansas has a statute like this as well.[4]

Personal Jurisdiction Over The Parent Company / The Steele Law Firm

Determining if the state has personal jurisdiction involves a two-part test, the first part of which is determining whether the parent company has sufficient contacts. For general jurisdiction this means the contacts are, “so ‘continuous and systematic’ as to render them essentially at home in the forum State.”[5] For specific personal jurisdiction it means, “issues deriving from, or connected with, the very controversy that establishes jurisdiction.”[6] If Plaintiff can establish either of these the second part of the test comes into play.

The second part of the test for determining if due process is complied with is if extending jurisdiction is reasonable. This refers to if “traditional notions of fair play and substantial justice” are followed.[7] Determining this involves a five factor test. As parts of the test the court must, “evaluate ‘the burden on the defendant,’ ‘the forum State’s interest in adjudicating the dispute,’ ‘the plaintiff’s interest in obtaining convenient and effective relief,’ ‘the interstate judicial system’s interest in obtaining the most efficient resolution of controversies,’ and the ‘shared interest of the several States in furthering fundamental substantive social policies.’”[8] If all of these factors are met then there is personal jurisdiction. In the case of nursing homes this means that there can be suit against the parent corporation or management group.

[1] Metro. Life Ins. Co. v. Robertson-Ceco Corp., 84 F.3d 560, 567 (2d Cir. 1996)

[2] Id.

[3] RSMo. 506.500.1

[4] K.S.A. § 60-308

[5] Goodyear Dunlop Tires Operations, S.A. v. Brown, 131 S. Ct. 2846, 2851, 180 L. Ed. 2d 796 (U.S. 2011)

[6] Von Mehren & Trautman, Jurisdiction to Adjudicate: A Suggested Analysis, 79 Harv. L.Rev. 1121, 1136 (1966)

[7] International Shoe Company v. Washington, 326 U.S. 310, 316 (1945).

[8] , 471 U.S. 462, 477, 105 S. Ct. 2174, 2184, 85 L. Ed. 2d 528 (1985)[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]