Thursday, May 20, 2010

Order Granting in Part and Denying in Part Motion to Dismiss for Lack of Personal Jurisdiction

Tillotson Corp. v. Top Glove SDN. BHD. et al., 4:05-cv-00232 (N.D. Ga. Mar. 31, 2010) (Vining, J.)


Defendants, a corporate parent and its two subsidiaries, moved to dismiss the suit for lack of personal jurisdiction. Judge Vining denied the motion as to the two subsidiaries based on evidence that these defendants imported into and sold thousands of potentially infringing gloves in Georgia and knowingly placed allegedly infringing products into the stream of commerce by selling to entities they knew would resell in Georgia.


The Court granted the motion as to the corporate parent, however, after concluding that there was insufficient evidence to pierce the corporate veil. According to the Court, the facts demonstrated that although the parent corporation and its subsidiaries shared officers and directors, the parent corporation was merely a holding company and did not control the activities of its subsidiaries. The Court thus held that the parent corporation should not be subject to jurisdiction through the actions of its subsidiaries.

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