Mallory v. Norfolk Southern

by Supreme Court of the United States

Note: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.

SUPREME COURT OF THE UNITED STATES

Syllabus

MALLORY v. NORFOLK SOUTHERN RAILWAY CO.
CERTIORARI TO THE SUPREME COURT OF PENNSYLVANIA, EASTERN DISTRICT
No. 21–1168. Argued November 8, 2022—Decided June 27, 2023

Robert Mallory worked for Norfolk Southern as a freight-car mechanic for nearly 20 years, first in Ohio, then in Virginia. After he left the company, Mr. Mallory moved to Pennsylvania for a period before returning to Virginia. Along the way he was diagnosed with cancer. Because he attributed his illness to his work at Norfolk Southern, Mr. Mallory sued his former employer under the Federal Employers’ Liability Act, 45 U. S. C. §§51–60, a federal workers’ compensation scheme permitting railroad employees to recover damages for their employers’ negligence. Mr. Mallory filed his lawsuit in Pennsylvania state court. Norfolk Southern—a company incorporated in Virginia and headquartered there—resisted the suit on the basis that a Pennsylvania court’s exercise of personal jurisdiction over it would offend the Due Process Clause of the Fourteenth Amendment. Norfolk Southern noted that when the complaint was filed, Mr. Mallory resided in Virginia, and the complaint alleged that Mr. Mallory was exposed to carcinogens only in Ohio and Virginia. Mr. Mallory pointed to Norfolk Southern’s presence in Pennsylvania, noting that Norfolk Southern manages over 2,000 miles of track, operates 11 rail yards, and runs 3 locomotive repair shops in Pennsylvania. In fact, Norfolk Southern has registered to do business in Pennsylvania in light of its “ ‘regular, systematic, [and] extensive’ ” operations there. 266 A. 3d 542, 562; see 15 Pa. Cons. Stat. §411(a). And Pennsylvania requires out-of-state companies that register to do business in the Commonwealth to agree to appear in its courts on “any cause of action” against them. 42 Pa. Cons. Stat. §5301(a)(2)(i), (b). By complying with this statutory scheme, Mr. Mallory submitted, Norfolk Southern had consented to suit in Pennsylvania on claims just like his.

The Pennsylvania Supreme Court sided with Norfolk Southern. That court found that the Pennsylvania law—requiring an out-of-state firm to answer in the Commonwealth any suits against it in exchange for status as a registered foreign corporation and the benefits that entails—violates the Due Process Clause.

Held: The judgment is vacated, and the case remanded. This case is controlled by Pennsylvania Fire Ins. Co. of Philadelphia v. Gold Issue Mining & Milling Co., 243 U. S. 93. Much like the Missouri law that the Court in Pennsylvania Fire found to comport with the Due Process Clause, the Pennsylvania law at issue here provides that an out-of-state corporation “may not do business in this Commonwealth until it registers with” the Department of State. 15 Pa. Cons. Stat. §411(a). Among other things, Pennsylvania law is explicit that “qualification as a foreign corporation” shall permit state courts to “exercise general personal jurisdiction” over a registered foreign corporation, just as they can over domestic corporations. 42 Pa. Cons. Stat. §5301(a)(2). Norfolk Southern has complied with this law since 1998, when it registered to do business in Pennsylvania. Norfolk Southern applied for a “Certificate of Authority” from the Commonwealth which, once approved, conferred on Norfolk Southern both the benefits and burdens shared by domestic corporations, including amenability to suit in state court on any claim. For more than two decades, Norfolk Southern has agreed to be found in Pennsylvania and answer any suit there.

Pennsylvania Fire held that suits premised on these grounds do not deny a defendant due process of law. Mr. Mallory no longer lives in Pennsylvania and his cause of action did not accrue there. But none of that makes any difference. To decide this case, the Court need not speculate whether any other statutory scheme and set of facts would suffice to establish consent to suit. It is enough to acknowledge that the state law and facts before the Court fall squarely within Pennsylvania Fire’s rule.

In the proceedings below, the Pennsylvania Supreme Court seemed to recognize that Pennsylvania Fire dictated an answer in Mr. Mallory’s favor but ruled for Norfolk Southern because, in its view, intervening decisions from this Court had “implicitly overruled” Pennsylvania Fire. See 266 A. 3d, at 559, 567. That was error. As this Court has explained: “If a precedent of this Court has direct application in a case,” as Pennsylvania Fire does here, a lower court “should follow the case which directly controls, leaving to this Court the prerogative of overruling its own decisions.” Rodriguez de Quijas v. Shearson/American Express, Inc., 490 U. S. 477, 484. This is true even if the lower court thinks the precedent is in tension with “some other line of decisions.” Ibid. Pp. 10–12.

266 A. 3d 542, vacated and remanded.

Gorsuch, J., announced the judgment of the Court, delivered the opinion of the Court with respect to Parts I and III–B, in which Thomas, Alito, Sotomayor, and Jackson, JJ., joined, and an opinion with respect to Parts II, III–A, and IV, in which Thomas, Sotomayor, and Jackson, JJ., joined. Jackson, J., filed a concurring opinion. Alito, J., filed an opinion concurring in part and concurring in the judgment. Barrett, J., filed a dissenting opinion, in which Roberts, C. J., and Kagan and Kavanaugh, JJ., joined.

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