Roorda v. Volkswagenwerk, A.G.

Ralph Roorda (plaintiff) sued German automobile manufacturer Volkswagenwerk, A.G. (VWAG) (defendant) for injuries Roorda sustained when the allegedly defective vehicle he was driving overturned. The vehicle was manufactured and originally sold in Germany by VWAG but ultimately made its way to Arizona, where Roorda purchased it. Roorda’s injuries occurred in California, but Roorda relocated to South Carolina before filing suit against VWAG in a South Carolina district court. Roorda also sued Volkswagen of America (VWOA), a New Jersey corporation wholly owned by VWAG and operating as the sole importer of VWAG’s products to the United States. VWOA’s operations were largely subject to the direct and indirect control and approval of VWAG. The two companies shared several board members, VWOA was required to operate under VWAG procedures using VWAG forms, and VWOA was the agent through which VWAG communicated with American dealers and consumers. Neither VWAG nor VWOA were registered to do business in South Carolina, but VWOA admitted its presence in South Carolina for jurisdictional purposes on account of the millions of dollars in sales VWOA made via Volkswagen dealerships operating in South Carolina. Service of process was properly made on VWAG and VWOA, but VWOA was ultimately dismissed from the case. VWAG moved to dismiss Roorda’s complaint on the grounds that VWAG did not do business in or have sufficient connections to South Carolina to confer jurisdiction, and Roorda failed to pierce the corporate veil between VWAG and VWOA such that VWOA’s presence in South Carolina should be attributed to VWAG.