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Daimler AG v. Bauman

United States Supreme Court
571 U.S. 117 (2014)

Written by Sean Carroll, JD

Facts

Barbara Bauman and other Argentinians (the Argentinians) (plaintiffs) sued DaimlerChrysler AG (Daimler) (defendant) in the United States District Court for the Northern District of California. Daimler was a German company that was headquartered in and manufactured Mercedes-Benz vehicles in Germany. The Argentinians alleged that Daimler’s Argentinian subsidiary, Mercedes-Benz Argentina (MBA), collaborated with Argentinian forces to kidnap, torture, and kill MBA workers in Argentina during an Argentinian war. These workers and their relatives were the Argentinians who sued Daimler, seeking to hold Daimler vicariously liable for MBA’s conduct. Daimler moved to dismiss, arguing that the California district court lacked personal jurisdiction over Daimler. The Argentinians argued that the district court had general personal jurisdiction over Daimler because Daimler’s US subsidiary, Mercedes-Benz USA, LLC (MBUSA), had substantial contacts with California. MBUSA, which was incorporated in Delaware and had its principal place of business in New Jersey, purchased vehicles from Daimler and imported them to the United States for US distribution. MBUSA sold Daimler vehicles in all 50 states. It had multiple facilities and offices in California. The district court granted Daimler’s motion to dismiss, concluding that personal jurisdiction was lacking. The Ninth Circuit reversed. The United States Supreme Court granted certiorari.

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Holding and Reasoning (Ginsburg, J.)

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Concurrence (Sotomayor, J.)

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