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On September 22, 2023, the NAM filed an amicus brief urging the 5th Circuit to decline to extend Texas personal jurisdiction to an out-of-state manufacturer who never sold the product at issue in a lawsuit to consumers, advertised it to consumers, or directed anyone else to sell or advertise it to consumers. In this case, the plaintiff claims that a Samsung-manufactured 18650 lithium-ion battery in the plaintiff’s e-cigarette exploded in his pocket, causing severe burns. Although the plaintiff claimed that he purchased the battery on Amazon.com from a third-party seller, he sued Samsung in Texas state court asserting contract and tort claims. The defendants removed the case from state to federal court and the federal district court granted the defendants’ motion to dismiss for lack of personal jurisdiction, concluding that Samsung’s contacts with Texas were insufficient for it to exercise personal jurisdiction. Although Samsung provided batteries to companies in Texas engaged in manufacturing or repairing products, Samsung did not authorize the sale of its battery by a third-party to the plaintiff or sale of its batteries to be used in an e-cigarette.

We argue in our brief that there is an insufficient basis to exercise personal jurisdiction where a claim arises independent of a defendant’s deliberate efforts to serve a market. And exercising personal jurisdiction in this case would create unpredictability for the business community.