News & Analysis as of

Out-of-State Companies

Ballard Spahr LLP

Illinois swipe fee injunction extended to cover out-of-state banks, but not federal credit unions

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Chief Judge Virginia Kendall of the Northern District of Illinois has extended her preliminary injunction prohibiting Illinois from enforcing the Illinois Interchange Fee Prohibition Act (the “IFPA”) to cover out-of-state...more

Lathrop GPM

Minnesota Federal Court Grants Franchisor’s Motion for Preliminary Injunction for Noncompete and Lanham Act Violations by...

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A federal court in Minnesota recently granted franchisor Snap Fitness Inc.’s motion for preliminary injunction against an out-of-state franchisee that announced its intentions to open a competing gym during the term of the...more

Saul Ewing LLP

First Circuit Says Massachusetts Non-Compete Agreement Enforceable in California Despite State’s Ban

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Last month, in DraftKings Inc. v. Hermalyn, the First Circuit Court of Appeals issued a decision concerning the application of California’s non-compete ban to agreements formed outside the state. Broadly, the decision...more

Shipman & Goodwin LLP

Conn. Court Split May Lead To Vertical Forum Shopping: A Law360 Article

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In Mallory v. Norfolk Southern Railway Co.,[1] the U.S. Supreme Court clarified last year that states can require foreign entities to consent to personal jurisdiction as a condition for doing business within their borders. ...more

Troutman Pepper Locke

States Join Colorado in Defense of Interest Rate Opt-Out Law

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On September 20, 13 states and Washington, D.C. joined Colorado in its appeal asking the Tenth Circuit to uphold a state law imposing more restrictive interest rate caps on loans from out-of-state banks to residents, arguing...more

Faegre Drinker Biddle & Reath LLP

Minnesota Supreme Court Holds the Minnesota Franchise Act Does Not “Categorically Preclude” Enforcement by Out-of-State...

On September 11, 2024, the Minnesota Supreme Court issued an opinion holding that the Minnesota Franchise Act (MFA) does not “categorically preclude an out-of-state company from enforcing a claim for unfair practices” under...more

Holland & Knight LLP

Massachusetts Board of Pharmacy to Take a Big Step: Licensing Nonresident Pharmacies

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In a move that could reshape the regulatory landscape for pharmacies servicing Massachusetts residents, the Massachusetts Board of Pharmacy has announced that it will soon begin licensing nonresident pharmacies and requiring...more

Seyfarth Shaw LLP

Seventh Circuit Aligns with Majority on FLSA Nationwide Collective Actions: BMS Applies

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Seyfarth Synopsis: The Seventh Circuit held that out-of-state plaintiffs must be dismissed from FLSA collective actions when the court lacks personal jurisdiction over them....more

Amundsen Davis LLC

A Year With Mallory: Revisiting The Concept of Consenting to General Personal Jurisdiction

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On June 27, 2023, Truck on highwaythe Supreme Court of the United States decided Mallory v. Norfolk Southern Railway Co., 600 U.S. 122 (2023). The divided Court upheld a Pennsylvania corporate registration statute which...more

Ballard Spahr LLP

Plaintiffs oppose Colorado’s motion for a stay of the preliminary injunction in the Colorado opt-out litigation

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Very soon, briefing by the parties in the 10th Circuit will commence with respect to Colorado’s appeal of a preliminary injunction entered by the Federal District Court for the District of Colorado. The District Court...more

Conn Maciel Carey LLP

[Webinar] Spotlight: Unique Aspects of State OSH Plans - September 19th, 1:00 pm ET

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Twenty-two states have OSHA-approved state plans that cover both private and state and local government workers. While state plans must be at least as effective as federal OSHA, some state plans have regulations unique to...more

Ballard Spahr LLP

Plaintiffs file amended complaint in Colorado opt-out litigation

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Here is an update on the lawsuit filed by three trade associations against the Colorado Attorney General and UCCC Administrator challenging the application of the Colorado opt-out statute to out-of-state, state chartered,...more

Husch Blackwell LLP

Colorado's DIDMCA Opt Opt Paused for Bank Loans Made Out of State

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The financial services industry has (finally) received some good news. Last week, a federal court granted a preliminary injunction to stop Colorado from enforcing interest and certain fee limitations under the Colorado...more

Ballard Spahr LLP

Colorado federal court issues preliminary injunction prohibiting Colorado from enforcing DIDMCA opt-out to loans made to Colorado...

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The Colorado federal district court hearing NAIB, et al v. Weiser, et al., the lawsuit filed by three consumer financial services industry trade groups challenging Colorado’s opt-out legislation, has granted the plaintiffs’...more

Marshall Dennehey

Vetoed New York State Legislation Maintains Status Quo to Favor Out-Of-State Defendants: No Consent to Jurisdiction by...

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Key Points: Corporation that registers to do business in New York does not necessarily consent to general personal jurisdiction. Proposed amendment to New York Business Corporation Law § 1301(e) would have overturned that...more

Patterson Belknap Webb & Tyler LLP

New York State Education Department Proposes Rules Relating to Affiliations Between New York and Out-of-State Institutions of...

The New York State Education Department (“SED”) has proposed an amendment to Title 8, Section 3.59 of the Rules of the Board of Regents that would clarify how a New York State institution of higher education (an “IHE”) might...more

Lathrop GPM

Washington Federal Court Denies Motion to Dismiss Out-of-State Distillers Constitutional Challenge to Washington’s Distillery...

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A federal court in Washington denied the State of Washington’s motion to dismiss an out-of-state distiller’s constitutional challenge to Washington’s distillery regulatory scheme. Shady Knoll Orchards & Distillery LLC v....more

Bradley Arant Boult Cummings LLP

A cautionary tale: Challenges for firms in Wayfair compliance

Law firms periodically receive requests for advice from CPAs regarding a client’s need to come into compliance with the relatively new and sometimes confusing “economic nexus” or “Wayfair” rules for selling goods or providing...more

WilmerHale

3 Personal Jurisdiction Questions Mallory Leaves Unanswered

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The due process framework that has cabined personal jurisdiction over nationwide and global businesses for the last eight decades — since the U.S. Supreme Court's 1945 ruling in International Shoe Co. v. Washington — looks...more

Troutman Pepper Locke

EDVA Judge Denies Motion to Strike New Evidence in Reply Brief and Transfers Patent Case to California

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In an October 3 decision, U.S. District Judge Thomas S. Ellis III granted a motion to transfer venue of a patent case brought in the EDVA to California under 28 U.S.C. § 1404(a). Monarch Networking Solutions LLC .v Juniper...more

Ervin Cohen & Jessup LLP

­California Opens its Doors to Commerce by Voiding Out-Of-State Non-Compete Agreements

You may have heard the half-serious joke that California acts as its own independent country. One example of this is California’s strong disfavor of non-compete agreements, which stands in contrast with the rest of the...more

Bricker Graydon LLP

U.S. Supreme Court Decides That Companies May Be Deemed to Have Consented to General Personal Jurisdiction in States Where They...

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In a case issued on June 27, 2023, a divided Supreme Court decided another important personal jurisdiction case – Mallory v. Norfolk Southern Railway Co., 2023 WL 4187749. The principal issue was whether a foreign corporation...more

FordHarrison

Noncompete News: The More Things Change, the More They Remain the Same: Georgia Supreme Court Addresses Choice of Law Provisions...

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Historically, Georgia courts have declined to apply another state’s law to determine whether to enforce restrictive covenants against a Georgia employee, regardless of whether the agreement stated that another state’s law...more

Benesch

Far From Home: Supreme Court Expands General Jurisdiction for Out-of-State Defendants in Mallory v. Norfolk Southern Railway Co.

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When served with a summons and complaint for an out-of-state lawsuit, one of the first things a defendant is likely to ask is—can this court compel me to appear? Given that most transportation and logistics-related disputes...more

Jenner & Block

Divided Supreme Court Takes on Personal Jurisdiction

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In Pennsylvania, an out-of-state corporation may not do business there until it registers with the Pennsylvania Department of State. Under Pennsylvania law, once the out-of-state corporation is registered, Pennsylvania state...more

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