Mere Qualification to Transact Business Does Not Give Rise to General Jurisdiction

Mere Qualification to Transact Business Does Not Give Rise to General Jurisdiction

         In the decision rendered last week started by a Federal District Court in Louisiana, it was held that the fact that a foreign LLC had qualified to do business in Louisiana was not sufficient to give rise to general jurisdiction. Gamboa v. Great Lakes Dredge & Dock Company, LLC of Louisiana,  2020 WL 4373111 (M.D. La. July 30, 2020).

          Gamboa, who qualified as a seaman under the Jones Act, alleged he was injured while working and brought this suit alleging negligence in the operation and maintenance of the vessel upon which he was injured. The LLC moved to dismiss on the basis that it was not subject to jurisdiction in the courts of Louisiana. The court, applying general jurisdiction (the plaintiff made no claims of specific jurisdiction) principles, reviewed whether the LLC was subject to the jurisdiction of the court sitting in Mississippi. Ultimately, it was determined that jurisdiction did not exist, and the complaint was dismissed. 

       In response to Gamboa’s assertion that having qualified to do business in Mississippi was sufficient to give rise to general jurisdiction, the court observed that “these activities are insufficient to establish general jurisdiction.”