Key Takeaways:
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A foreign corporation registered to do business in Illinois or transacting in Illinois will now be deemed to have consented to general jurisdiction in toxic tort suits regardless of whether the plaintiff is a resident of Illinois or if the alleged harm took place in the state of Illinois
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Although this has the potential to expand Illinois courts’ jurisdiction over corporations in toxic tort litigation, it remains to be seen whether the new law will stand as this law raises significant constitutional concerns and it is anticipated that this law will be challenged heavily in the courts
This potential expansion of general jurisdiction in Illinois applies only for actions that allege injury or illness resulting from exposure to a toxic substance as defined under the Uniform Hazardous Substances Act of Illinois. In addition, one co-defendant in the suit must be subject to jurisdiction in Illinois under Section 2-209(a) of the Illinois Code of Civil Procedure.
The Uniform Hazardous Substances Act defines a toxic substance as “any substance (other than a radioactive substance) which has the capacity to produce bodily injury or illness to man through ingestion, inhalation, or absorption through any body surface.”
For businesses that have previously registered to do business in the state of Illinois, they will be deemed to have consented to general jurisdiction upon the next date that the filing of their annual report is due, regardless of whether an annual report is actually filed. To terminate consent to general jurisdiction, a corporation must formally withdraw from the state.
The new law raises significant constitutional concerns and will likely be hotly contested in the courts. Further, although the Supreme Court upheld a similar statute in Pennsylvania, in a concurring opinion, Justice Alito indicated that there are additional constitutional arguments against such a statute under the dormant commerce clause. Therefore, it remains to be seen whether this law will stand.
