In the August 2006 IADC Newsletter, Baker Botts lawyers Stephen Scheve and Scott Kelly review a product liability action in El Paso, Texas, involving two U.S. subsidiaries of a multinational pharmaceutical concern, arising out of the purchase of a product in Mexico.
“Both companies,” the lawyers write, “ conceded that they sold products and had ‘minimum contacts’ with the state of Texas, but neither company had ever sold the product at issue. The product at issue was marketed by other companies in Mexico, but was not even approved for marketing by [the] FDA in the United States.
“The two companies argued that even though they had ‘minimum contacts,’ a Texas court’s assertion of person jurisdiction over them would offend ‘traditional notions of fair play and substantial justice,” they added.
The two companies prevailed and avoided unnecessary discovery and expense.
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