In April 2004, a bus carrying young soccer players from North Carolina overturned on a road outside Paris, France, killing two 13-year-old boys, Julian Brown and Matthew Helms. Their parents, acting as administrators of the boys' estates, filed a wrongful-death suit in the Superior Court of Onslow County, North Carolina, alleging negligence in the design, construction, testing, and inspection of a tire that failed during the trip.
The defendants were The Goodyear Tire and Rubber Company, an Ohio corporation, and three of its indirect subsidiaries incorporated and operating in Luxembourg, Turkey, and France. Goodyear USA maintained plants in North Carolina and did not contest personal jurisdiction, but the foreign subsidiaries moved to dismiss, asserting that North Carolina lacked authority over them.
The foreign subsidiaries manufactured tires primarily for European and Asian markets, with tires differing in size and construction from those sold in the United States. They maintained no place of business, employees, or bank accounts in North Carolina, did not design, manufacture, advertise, or sell products there, and the specific Goodyear Regional RHS tire involved in the accident was never distributed in the state, although a small percentage of other tires they produced reached North Carolina through other Goodyear affiliates.
The trial court denied the subsidiaries' motion to dismiss. The North Carolina Court of Appeals affirmed that ruling after finding that the subsidiaries' placement of tires into the stream of commerce supported the exercise of general jurisdiction. The North Carolina Supreme Court denied discretionary review. The U.S. Supreme Court granted certiorari.
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