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Defense Digest

Can the Pennsylvania Supreme Court’s Mallory v. Norfolk Southern Opinion Curtail Mass Tort Filings in Pennsylvania?

Defense Digest, Vol. 28, No. 1, April 2022

Key Points:

  • Supreme Court of Pennsylvania issued a decision in Mallory v. Norfolk Southern Railway. Co. that will have a significant impact on asbestos and other mass tort litigation in Pennsylvania and where such cases may be filed.
  • In Mallory, the Pennsylvania Supreme Court unanimously declared Pennsylvania’s “consent by registration” statutory scheme unconstitutional.

On December 22, 2021, the Supreme Court of Pennsylvania issued a decision in Mallory v. Norfolk Southern Railway. Co., 263 A.3d 542 (Pa. 2021), which will have a significant impact on asbestos and other mass tort litigation in Pennsylvania. Until now, Pennsylvania has been one of a minority of states that allows a foreign defendant to be hauled into court under principles of general jurisdiction based solely on registration to do business in the state. Given the fact that Philadelphia and Allegheny County courts trend pro-plaintiff, with relatively high verdicts in toxic tort matters, plaintiffs take advantage of Pennsylvania’s liberal jurisdiction rules to forum shop and file mass tort actions that have little or no connection to these jurisdictions. That landscape is changing. In Mallory, the Pennsylvania Supreme Court unanimously declared Pennsylvania’s “consent by registration” statutory scheme unconstitutional.

Background
The plaintiff in Mallory, a Virginia resident, filed a FELA action in the Philadelphia Court of Common Pleas against a Virginia corporation, Norfolk Southern Railway (Norfolk Southern), alleging he was exposed to asbestos and other hazardous substances while working for Norfolk Southern in Ohio and Virginia, which caused him to develop colon cancer. None of the plaintiff’s alleged exposure occurred in Pennsylvania.

Norfolk Southern filed preliminary objections, seeking dismissal of the complaint for lack of both general and specific jurisdiction. The plaintiff, however, argued that Norfolk Southern had consented to jurisdiction by registering to do business in the Commonwealth pursuant to 42 Pa.C.S. § 5301(a)(2), which provides in pertinent part:

(a) General Rule. – The existence of any of the following relationships between a person and this Commonwealth shall constitute a sufficient basis of jurisdiction to enable the tribunals of this Commonwealth to exercise general personal jurisdiction over such person, or his personal representative in the case of an individual, and to enable such tribunals to render personal orders against such person or represented:


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     (2) Corporations.--
          (i) Incorporation under or qualification as a foreign corporation under the laws of this Commonwealth; 
          (ii) Consent, to the extent authorized by the consent;
          (iii) The carrying on of a continuous and systematic part of its general business within this Commonwealth.

Norfolk Southern’s preliminary objections were sustained by the trial court, which opined that it would violate the due process of the Fourteenth Amendment to construe a foreign corporation’s compliance with Pennsylvania’s mandatory business registration statute as voluntary consent to the exercise of general personal jurisdiction. The court noted that, because Pennsylvania requires foreign corporations to register with the Commonwealth before conducting business operations, foreign corporations are faced with a Hobson’s choice—to either register to do business, and thereby consent to general jurisdiction, or not do business in the Commonwealth. The court found that this “Hobson’s choice violate[d] Defendant’s right to due process.” Requiring a foreign corporation to submit to general jurisdiction as a condition precedent to doing business within the Commonwealth also unconstitutionally “infringes upon our sister states’ ability to try cases against their corporate citizens” and “runs counter to the concept of federalism and should not be tolerated.” The plaintiff appealed directly to the Pennsylvania Supreme Court pursuant to 42 Pa.C.S. § 722(7). 

Supreme Court Decision
On appeal, the plaintiff-appellant continued to argue that registration to do business in the Commonwealth establishes consent to general personal jurisdiction under Pennsylvania’s long-arm statute, 42 Pa.C.S. § 5301(a)(2)(i), which expressly states that Pennsylvania courts may exercise general personal jurisdiction over corporations that qualify as foreign corporations under the law, and that qualification requires registration to do business within the state. According to the plaintiff, the statute does not coerce involuntary consent to jurisdiction but, instead, gives notice to foreign corporations registering to do business in the Commonwealth that, by doing so, they are consenting to jurisdiction. The plaintiff further noted that there is no precedent holding that a foreign corporation cannot validly consent to jurisdiction by registration. 

Norfolk Southern, by contrast, argued that, since the statute requires all foreign corporations to register, it compels them to surrender their right to due process in order to do business within the Commonwealth. This violates the doctrine of “unconstitutional conditions,” prohibiting the government from denying a benefit to someone because they are exercising a constitutional right. “Compliance with mandatory registration cannot serve as a voluntary relinquishment of due process rights.” 

The Supreme Court noted that Pennsylvania’s statutory scheme that confers general jurisdiction over foreign corporations, regardless of whether they incorporated, established their principal place of business or are otherwise “at home” in the Commonwealth, would eviscerate the general jurisdiction framework and minimum due process requirements established by the U.S. Supreme Court in Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915 (2011) and Daimler AG v. Bauman, 571 U.S. 117 (2014), and thereby violate Constitutional notions of fair play and substantial justice. “Upon a close examination of the High Court’s most recent directives, we are persuaded that our statutory scheme fails to comport with the guarantees of the Fourteenth Amendment; thus, it clearly, palpably, and plainly violates the Constitution.” Citing to International Shoe Co. v. Washington, 326 U.S. 310 (1945), the court explained that “to find that Defendant consented to the general jurisdiction of Pennsylvania courts when it registered to do business here, we must conclude that it voluntarily, knowingly, and intelligently waived its due process liberty interest in not being subject to the binding judgments of a forum with which it has no meaningful ‘contacts, ties, or relations.’” While Norfolk Southern may have had notice that registering to do business within the Commonwealth would subject it to personal jurisdiction, “notice [] does not render the consent voluntary.” Because a foreign corporation’s only choice is to consent to personal jurisdiction or not do business in the Commonwealth, the court found that “consent” to personal jurisdiction was thereby coerced and not voluntary. 

The court further noted that Pennsylvania’s statute was contrary to the concept of federalism, recognized by the U.S. Supreme Court in Bristol-Myers Squibb Co. v. Superior Court, 137 S. Ct. 1773 (2017), stating, “[w]hen determining whether personal jurisdiction is present, courts should consider the effect of the defendant’s ‘[submission] to the coercive power of a State that may have little legitimate interest in the claims in question,’ as the ‘sovereignty of each state implies a limitation of the sovereignty of all its sister states.’” On this point, the court held that “[t]he factual predicate underlying the instant appeal illustrates the textbook example of infringement upon the sovereignty of sister states, as Pennsylvania has no legitimate interest in a controversy with no connection to the Commonwealth that was filed by a non-resident against a foreign corporation that is not at home here.” 

In conclusion, the Supreme Court affirmed the trial court order sustaining Norfolk Southern’s preliminary objections and dismissed the action for lack of personal jurisdiction, holding:

Our statutory scheme of conditioning the privilege of doing business in the Commonwealth on the submission of the foreign corporation to general jurisdiction in Pennsylvania courts strips foreign corporations of the due process safeguards guaranteed in Goodyear and Daimler. Legislatively coerced consent to jurisdiction is not voluntary consent and cannot be constitutionally sanctioned. Accordingly, our statutory scheme is unconstitutional to the extent that it affords Pennsylvania courts general jurisdiction over foreign corporations that are not at home in the Commonwealth.


Commentary

The Mallory opinion brings Pennsylvania’s jurisprudence in line with recent U.S. Supreme Court’s decisions regarding due process, as well as those in neighboring jurisdictions. It continues the national trend of rulings narrowing the scope of general personal jurisdiction. After Mallory, Pennsylvania courts can still exercise general personal jurisdiction over companies incorporated or having a principal place of business in Pennsylvania; however, foreign corporations will no longer be subject to general personal jurisdiction based solely on their registration to do business in the Commonwealth. This decision does not impact the ability of Pennsylvania courts to exercise specific jurisdiction over foreign corporations.

To avoid waiver, defendants need to be vigilant and to preserve their jurisdictional arguments through timely objection as soon as there is sufficient information to establish the lack of any basis for the court’s exercise of jurisdiction over them. Defendants who previously had preliminary objections overruled or summary judgment motions denied based on “jurisdiction by consent” should consider whether they now have a basis to seek reconsideration based on Mallory. Since counties like Philadelphia and Allegheny have a reputation as being more plaintiff-friendly jurisdictions, the Mallory decision is a significant development since it both provides a basis for foreign defendants to object to jurisdiction and to avoid litigating in these less favorable forums. Hopefully, it serves as a disincentive for plaintiffs to file against them in these and other Pennsylvania courts. 

*Christine is a shareholder in our Philadelphia, Pennsylvania, office. She can be reached at 215.575.2778 or CPBusch@mdwcg.com. 

 

Defense Digest, Vol. 28, No. 1, April 2022 is prepared by Marshall Dennehey Warner Coleman & Goggin to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2022 Marshall Dennehey Warner Coleman & Goggin. All Rights Reserved. This article may not be reprinted without the express written permission of our firm. For reprints, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

Mitigating Long-Tail Liability: Delaware Court Reaffirms Five-Year Workers’ Compensation Deadline

Williamson v. Donald F. Deaven, Inc., No. N25A-07-004 FWW, 2026 LX 252526 (Del. Super. Ct. June 2, 2026) Claimant was involved in a compensable industrial work accident on May 12, 1995, for a low back injury.  Following this, he received compensation for temporary total disability benefits from July 1996 to September 1996 and for sustaining a permanent impairment in 1997 and 1998.  For the next 23 years, the claimant continued treatment and paid his own medical bills without submitting them to the employer’s insurer.  In November 2021, the claimant filed a petition seeking payment for medical expenses, including prospective surgery and a resulting period of total disability.  The employer moved to dismiss the petition, arguing it was barred by Delaware’s five-year statute of limitations (19 Del. C. § 2361(b)). Pursuant to 18 Del. C. § 3914, insurers must provide prompt written notice of the applicable statute of limitations to invoke the five-year deadline.  Due to the age of the case, neither party had a comprehensive file of the claim and the Board had archived its file of the matter.  The carrier’s computer system retained only bare information indicating that payments occurred and agreements and receipts were filed with the Board in 1997. While the claimant argued that the employer could not prove it provided the mandatory statutory notice, the Hearing Officer recovered the archived file, which contained two “Receipts for Compensation Paid” signed by the claimant.  The receipts explicitly contained the required five-year limitation language, which the claimant testified to signing at the hearing.  The claimant also attempted to introduce evidence of payments he claimed the employer made, which would have extended the statute of limitations.  As a preliminary matter, the hearing officer excluded the testimony about the payments because the claimant did not produce them to the employer.  The Board found in favor of the employer and dismissed the claimant’s petition as time-barred. The claimant appealed the Board’s decision, arguing that he never received adequate notice of the statute of limitations and that the hearing officer’s evidentiary ruling was an abuse of discretion. The Court held that the archived, signed receipts constituted substantial evidence that the insurer fulfilled its statutory notice requirements.  Therefore,  the claimant’s petition was time-barred under the statute of limitations provisions of 19 Del. C. § 2361(b).  Furthermore, the Court reinforced strict procedural compliance: it rejected the claimant’s attempts to introduce evidence of payment on appeal, ruling the argument was waived for failure to preserve it while the matter was still before the Board. This recent ruling by the Court underscores the importance and necessity of robust data preservation and precise compliance with notice requirements.  For risk managers, employers, and insurers, the decision highlights how tight administrative execution protects against catastrophic long-tail liability.

Thought Leadership

Employer/Carriers Must Explicitly Invoke Right to Deny Claim Under “Pay and Investigate” Statutory Provision; Employes Must Always Prove Medical Necessity of Treatment

Koren v. City of Kissimmee/PGCS, ___So.3d___(Fla 1st DCA 6/10/26) The majority opinion in Koren holds that the Judge of Compensation Claims (JCC) properly denied psychiatric treatment because the claimant did not challenge on appeal the JCC’s finding that the requested treatment was not medically necessary. However, Judge K. Thomas authored a detailed concurrence agreeing with the result on the ground that the claimant failed to meet his burden of proving medical necessity. In doing so, Judge K. Thomas also emphasized an important principle: employer/carriers must expressly invoke the 120-day pay-and-investigate provision under Florida’s Workers’ Compensation Act if they intend to preserve their right to deny compensability. Merely authorizing evaluations, without explicitly invoking the 120-day rule, may be insufficient to preserve the right to deny compensability of specific injuries. In Koren, the claimant sustained injuries to his upper lip, tooth, right knee, and right foot when a board gave way on a deck he was repairing for the employer/carrier. The accident was accepted as compensable, and multiple specialists were authorized to treat his physical injuries, including an ear, nose, and throat physician, dentist, orthopedist, and plastic surgeon. The claimant later sought psychiatric treatment and attended an independent medical examination (IME) with a psychiatrist. The IME diagnosed adjustment disorder with mixed anxiety and depressed mood, opining that the condition was caused by “the actual appearance of the scar” resulting from the industrial accident. The IME recommended continued medication, including an antidepressant, as well as follow-up care with a psychiatrist and psychologist. Critically, however, the IME did not offer an opinion regarding the medical necessity of this treatment. The claimant then filed a petition for benefits attaching the IME report and requesting authorization of psychiatric care. The employer/carrier responded by authorizing a psychiatrist, whom the claimant did, in fact, see. However, the employer/carrier neither denied the claim nor issued written notice invoking the 120-day pay-and-investigate provision. The authorized psychiatrist subsequently opined that the claimant’s psychiatric condition was unrelated to the industrial accident and instead attributable to prior employment as a law enforcement officer and volunteer firefighter. The psychiatrist further concluded that the work accident was not the major contributing cause of the condition. Although the employer/carrier stipulated to the authorization of the psychiatrist, it ultimately denied the claimant’s entitlement to psychiatric treatment. The JCC denied the requested benefit. The majority opinion affirmed on the narrow ground that medical necessity had not been established. Judge K. Thomas’s concurrence, however, expands on the legal framework. Under Florida law, an employer/carrier presented with a claim must “pay, pay and investigate, or deny.” To avail itself of the 120-day pay-and-investigate protection, the employer/carrier must affirmatively and explicitly invoke that option, typically through a written 120-day letter. The statutory investigative period does not arise automatically upon the provision of care. Furthermore, an attempt to characterize authorization as a “one-time evaluation” does not avoid waiver, as even a single evaluation may constitute the provision of a compensable benefit. By authorizing psychiatric care without invoking the 120-day provision, the employer/carrier in Koren effectively accepted compensability of the claimant’s PTSD condition. Nonetheless, it retained the ability to contest entitlement to ongoing treatment. While the employer/carrier failed to demonstrate a break in the causal chain, the claimant still bore the burden of proving that the requested treatment was medically necessary. Because the JCC found that the claimant failed to meet this burden, and the claimant did not challenge that finding either below or on appeal, the denial of psychiatric benefits was ultimately affirmed.

Thought Leadership

Appellate Division Affirmed Workers’ Compensation Order Striking Defenses and Ordering Treatment

Kneezel v. Lambertville House, No. A-2729-24 (June 1, 2026) In Kneezel v. Lambertville House, Lambertville House appealed from a workers’ compensation order to strike its defenses and directing it to authorize knee replacement surgery. By way of background, the petitioner worked as a property manager for Lambertville and injured his back and knee in December 2019. A workers’ compensation claim was filed and the petitioner treated at Rothman Institute. He underwent four injections to his low back and was recommended for surgery. The day before, Lambertville canceled and set up a second opinion exam with Dr. Lawrence Barr. The petitioner filed a motion for medical and temporary benefits (MMT), which was ultimately granted by the workers’ compensation judge. As such, he received authorized treatment for his back. The petitioner was then referred for his left knee pain and treatment was provided by Lambertville. He was recommended for a knee replacement, but the petitioner declined at that time. Approximately two years later, he sought additional treatment, which was denied. After obtaining a report from Dr. Dhimant Balar, the petitioner filed another MMT. In response, Lambertville submitted Dr. Zachwieja’s report and surveillance reports. Dr. Balar opined the left knee injury was related to the work accident, whereas Dr. Zachwieja believed it was due to his advanced degeneration as there was no evidence of acute trauma. A hearing on the MMT began in November 2024, with the petitioner testifying his knee pain never went away and he had a lot of trouble walking, especially for more than five to ten minutes. The surveillance investigators were scheduled to testify after, but had to be rescheduled a couple of times. During a conference in early February 2025, prior to when the investigators were to testify, it was discovered that Lambertville did not provide discovery to the petitioner, including the investigators’ information and surveillance footage. The petitioner moved to strike Lambertville’s defenses and sought an order to authorize the left knee treatment. Petitioner’s counsel pointed to Lambertville’s unreasonable delay in providing the necessary information and Lambertville did not file an opposition. In March 2025, the investigators’ testimonies were set for mid-March. On March 14, 2025, petitioner’s counsel advised she was still waiting for discovery and the judge directed Lambertville’s counsel to provide any missing information by March 17, 2025. Lambertville provided video clips after the petitioner had testified so the judge indicated that if everything was not provided to petitioner’s counsel by the end of March 19, 2025, the judge would sign the order granting the MMT. The next day, the judge entered the order striking Lambertville’s defenses and ordering left knee treatment. Lambertville moved for reconsideration of stay of the order pending appeal. Following oral arguments, the judge denied Lambertville’s motion, citing N.J.A.C. 12:235-3.11 (a)(4)(i) that Lambertville was required to provide surveillance after the petitioner’s testimony and that it had failed to do so even after he testified in November 2024. The judge also noted the investigators’ testimonies were rescheduled multiple times and Lambertville had more than enough time to provide the requested information and failed to do so. The judge also noted Lambertville failed to file a response to the petitioner’s motion to strike. In addition, the judge pointed to the petitioner’s testimony, finding him to be credible and observing him to have to stand and move multiple times during testimony. Lambertville appealed, arguing its due process rights were violated as there was no opportunity to be heard and the order was procedurally and factually defective. However, the Appellate Division disagreed, noting Lambertville had sufficient notice and many opportunities to be heard. It was noted Lambertville’s failure to comply with the judge’s requests led to the order. As for the motion to strike, the Appellate Division indicated Lambertville failed to oppose the motion, which provided the judge with the ability to decide without a hearing for an uncontested motion. Ultimately, the Appellate Division found no abuse of discretion and affirmed the judge’s rulings and order.

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

We successfully obtained a no-cause jury verdict in a 13-day wrongful death trial. The decedent, a 59-year-old man, was admitted to the emergency room on February 15, 2019, with complaints of abdominal pain, decreased appetite, and constipation, despite the use of laxatives. The patient did not complain of any nausea, vomiting, or diarrhea. He had a significant medical history including diabetes, hypertension, prior coronary artery stenting, morbid obesity (with past gastric bypass surgery), longstanding ventral hernia, and back pain. A CT scan revealed multiple hernias and a potential closed-loop bowel obstruction, leading to a surgery consultation. Our client, an emergency general surgeon, interpreted that the patient did not have a closed loop or any significant obstruction and recommended non-surgical management. The patient was approved to have clear liquids, and had a vomiting incident shortly after, but our client was not notified. The patient was returned to NPO status, and after improving overnight, he was returned to “clears” and additional medical and renal consults were ordered. Our client did not receive any communications from the residents/nurses of any changes in the patient’s condition. On February 18, 2019, two rapid responses were called due to increased heart rate and vomiting. It is believed that the vomiting resulted in aspiration, causing sepsis, ultimately leading to the patient’s death. During the trial, the plaintiff’s sole medical expert highlighted imaging on the wrong hernia, which called into question all of his opinions in the case. We made key objections related to the expert testimony, limiting what the allegations were, and preventing new allegations from being made. After approximately two and a half hours of deliberating, the jury returned a no-cause verdict.