Lawyer Commentary JD Supra United States Personal Jurisdiction over Non-resident Class Members? District Courts Diverge on Application of Bristol-Myers Squibb to Nationwide Class Actions

Personal Jurisdiction over Non-resident Class Members? District Courts Diverge on Application of Bristol-Myers Squibb to Nationwide Class Actions

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Following the Supreme Court’s landmark personal-jurisdiction decision in Bristol-Myers Squibb, federal district courts have continued to disagree about whether to apply the court’s holding to cases involving nationwide class actions. Although we believe the argument in favor of applying Bristol-Myers in the class context is overwhelming––after all, how could plaintiffs curtail defendants’ due process rights simply by invoking the procedural device of Rule 23?––the disagreement on this topic will very likely continue to deepen until it ripens into a circuit split that the court can resolve.

In Bristol-Myers Squibb, the Supreme Court held that a California state court was precluded from exercising personal jurisdiction over the defendant with respect to claims asserted by non-resident mass tort claimants. As Justice Sotomayor’s dissent noted, however, the holding of the majority did not explicitly address whether it applied to nationwide class actions.

Predictably, the majority’s silence on this issue has divided lower courts: “Whether Bristol-Myers extends to class actions is a question that has divided courts across the country.” See Chavez v. Church & Dwight Co., Inc., No. 17 C 1948, 2018 WL 2238191 at *10 (N.D. Ill. May 16, 2018), which dismissed claims of absent class members arising outside of the forum state.

While no circuit court has considered the issue, some federal district courts have applied Bristol-Myers Squibb to class actions:

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