Mar. 26, 2003

Contesting Jurisdiction Can Be Good Way to Avoid Costly Suit

Focus Column - International Law - By Allison S.Y. Chang - For nonresident multinational holding companies with a subsidiary operating in California, a litigation headache occurs when the parent is named as a defendant in a California lawsuit for the alleged misdeeds of its subsidiary. When this happens, the foreign corporation has several defensive litigation options, including a motion to quash service of the summons for lack of personal jurisdiction.