Legal Question in Business Law in Delaware

If i am incorporated in Delaware, and do not do business in delaware, and some one gets hurt from my product in Delaware, do Delaware courts have Jurisdiction over my company? For example

Sparx Corporation is incorporated in the state of Delaware, but all of the firm's business is conducted within the state of New York. Sanders, a Delaware resident, is injured by one of Sparx Corporation's products and subsequently files suit against Sparx Corporation in Delaware State Court.

Sparx files a motion to dismiss the case on grounds that Delaware cannot assert jurisdiction over the corporation because it does not conduct business in Delaware but is only incorporated there because it gained certain legal advantages from incorporating in that state. Explain why the Delaware state court system does or does not have jurisdiction over this case.


Asked on 10/16/09, 6:41 pm

1 Answer from Attorneys

There is jurisdiction in Delaware because, by being incorporated there, the company is a citizen of the State of Delaware. From the information you provide there also would be jurisdiction in New York because business is conducted there.

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Answered on 10/21/09, 6:59 pm


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