Legal & Regulatory Reform
Personal Jurisdiction over Foreign Manufacturers
In recent years, several legislative proposals and lawsuits have sought to impose service of process and personal jurisdiction over foreign manufacturers.
In December 2011, Senator Sheldon Whitehouse (D-RI) reintroduced a new version of the Foreign Manufacturers Legal Accountability Act (S.1946) and Rep. Betty Sutton (D-OH) reintroduced companion legislation (H.R.3646). The scope of the proposals remain similar to legislation they introduced in the 111th Congress - foreign manufacturers of specified covered products would be required to register an agent in a state with a substantial connection to the product and consent to personal jurisdiction and service of process in federal and at least one state court for civil and regulatory actions.
OFII agrees that foreign manufacturers should be responsible for products they sell in the United States, but strongly opposes FMLAA because it would impose new burdens on U.S. subsidiaries, companies which are already fully accountable for the safety of their products under established regulatory and tort law. Such proposals would also violate a broad array of international agreements, risk disrupting important supplier relationships, and invite retaliatory legislation by other countries against U.S. exporting companies.
A related proposal also appeared in the Senate FY12 Financial Services and General Government Appropriations bill (S.1573). OFII and the National Association of Manufacturers jointly sent a letter to Subcommittee leadership voicing our opposition to the proposed language. The proposal was ultimately dropped from the final appropriations package that became law.
The issue of product liability relating to foreign manufacturers has arisen recently in the courts, where several rulings have limited the authority of the state to exercise personal jurisdiction over foreign corporations in product liability cases involving their U.S subsidiaries. OFII has filed several amicus briefs to comment on appropriate limits of jurisdiction.
OFII and NAM Coalition Letter Opposing FMLAA, December 12, 2011
OFII and NAM Letter to Senate Appropriations Committee, September 14, 2011
OFII Business Coalition Letter Opposing FMLAA Act, June 21, 2010
Amendment to FMLAA Act, June 20, 2010
LEGAL & REGULATORY REFORM
Often legal and regulatory issues arise that uniquely or disproportionately target U.S. subsidiaries of companies headquartered abroad. OFII, by itself or with other business groups, regularly participates in the U.S. legal system by submitting relevant briefs and amicus briefs. Additionally, OFII works to ensure that policymakers do not subject U.S. subsidiaries to unnecessary and burdensome regulations...
Read More...OFII regularly participates in the U.S. legal system on its own and with other business groups on issues that uniquely or disproportionately affect U.S. Subsidiaries of companies headquartered abroad.
Read More...As established under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Financial Stability Oversight Council (FSOC) is charged with identifying and monitoring organizations that pose a systemic risk to the financial stability of the United States. In response to an Advance Notice of Public Rulemaking, OFII submitted comments to the Department of Treasury about which factors the FSOC...
Read More...Industry Trade Advisory Committees (ITACs) are jointly administered by the Department of Commerce and the United States Trade Representative (USTR) to provide a forum where private industry can have a voice in formulating U.S. trade policy. U.S. citizen representatives who work for U.S. subsidiaries of foreign headquartered companies are currently prohibited from participating in ITACs, even though...
Read More...During Senate floor consideration of the “America Invents Act” of 2011 (S.23), OFII sent a letter to every Senator urging them to improve or drop a provision that would leave U.S. subsidiaries and their parent companies vulnerable to plaintiffs filing separate and duplicative lawsuits in multiple venues. Shortly thereafter, the provision was dropped from the bill before its passage in the Senate....
Read More...In recent years, several legislative proposals and lawsuits have sought to impose service of process and personal jurisdiction over foreign manufacturers. In December 2011, Senator Sheldon Whitehouse (D-RI) reintroduced a new version of the Foreign Manufacturers Legal Accountability Act (S.1946) and Rep. Betty Sutton (D-OH) reintroduced companion legislation (H.R.3646). The scope of the proposals...
Read More...