Jenner & Block

“Personal Jurisdiction Defenses May Protect Parent Entities,” Law360

In this article, Jenner & Block Partners Daniel J. Weiss and Anthony B. Borich and Associate Abraham M. Salander examine the impact of a recent decision on REITS.  The authors explain that REITs and other parent-level real estate companies typically form subsidiary partnerships and limited liability companies to own or manage real estate assets.  Those subsidiaries are often formed in states other than the state in which the parent entity is formed.  The authors highlight a recent Delaware decision that provides guidance on whether parent entities can assert a personal jurisdictional defense to avoid lawsuits filed in foreign states in which their subsidiaries are formed.  “The decision confirms that parent entities may be able to assert a successful personal jurisdiction defense in such lawsuits, but only if they take certain steps to minimize their contacts with the foreign state,” they observe.