Supreme Court allows individuals to sue companies in states they register in

Supreme Court ruling overview: 

• Who: The Supreme Court ruled in a case where former employee Robert Mallory sued Norfolk Southern.
• Why: The Supreme Court ruling overruled a lower court’s decision that Norfolk Southern could not be sued in Pennsylvania.
• Where: The case was in front of the United States Supreme Court.

The United States Supreme Court ruled that Norfolk Southern can be sued in Pennsylvania, a state where it is registered to do business.

The Supreme Court ruling overturned a lower court’s ruling that Norfolk Southern could not be sued in the state because it is based in Virginia and plaintiff Robert Mallory had worked for the company in Virginia and Ohio before later moving to Pennsylvania.

Mallory was a freight-train mechanic for Norfolk Southern for 20 years and he sued Norfolk Southern after he was diagnosed with cancer, which Mallory believes was caused by his employment at Norfolk Southern.

The lawsuit was based upon the Federal Employers’ Liability Act, which is a federal workers’ compensation scheme permitting railroad employees to recover damages for their employers’ negligence. The lower court, however, found that the lawsuit would violate the Due Process Clause of the 14th Amendment.

The Supreme Court ruling cited a previous Pennsylvania Fire ruling that set the precedent that people could sue companies registered in a state.

“Pennsylvania Fire held that suits premised on these grounds do not deny a defendant due process of law,” the Supreme Court ruling said. “Mr. Mallory no longer lives in Pennsylvania and his cause of action did not accrue there. But none of that makes any difference. To decide this case, the Court need not speculate whether any other statutory scheme and set of facts would suffice to establish consent to suit. It is enough to acknowledge that the state law and facts before the Court fall squarely within Pennsylvania Fire’s rule.” 

Supreme Court says lower court should have followed Pennsylvania Fire precedent

The Supreme Court ruling stated that the lower court should have followed the precedent of Pennsylvania Fire, even if the court felt that precedent was in conflict with another line of decisions. 

Norfolk Southern agreed earlier this year to compensate homeowners in East Palestine, Ohio, for a decrease in property value after a train derailment and fire and chemical spill in the area.

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