In the case Daimler AG vs Barbara Bauman What are the facts

In the case, Daimler AG vs. Barbara Bauman

What are the facts of the case? and what is the legal issue of the case?

Solution

The complaint by 22 residents of Argentina filed suit in California against Mercedes-Benz Argentina (MB Argentina), an Argentinian subsidiary of Daimler. Their complaint said that the firm , an Argentinian subsidiary of Daimler, collaborated with security forces of the state during Argentina’s 1976–1983 “Dirty War” to kidnap, detain, torture, and kill certain workers of the said firm, among them, accusers or relatives of the to the plaintiffs. The plaintiffs asserted claims under the Alien Tort Statute and the Torture Victim Protection Act of 1991, as well as under California and Argentina law.

The issue was whether the court can exercise jurisdiction over a foreign company based on the fact that a subsidiary acts on its behalf in the forum state. The court said no with 9-0 majority and held that the company contacts in California are much lesser than the national and international contacts of the company in the home state, which shows very little connection to California. The court also judged that subject the company to this suit would be against the fourteenth Amendment demands. California jurisdiction will only be considered if the company has dealt with any business with the state. The argument was that such a case should be decided only on the sufficient contacts in California.