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WASHINGTON, Jan 14 (Reuters) - The U.S. Supreme Court ruled on Tuesday that Daimler AG cannot be sued in California over allegations that a subsidiary violated the human rights of workers at a plant in Argentina in the 1970s.
On a unanimous vote, the court reversed a May 2011 San Francisco-based 9th U.S. Circuit Court of Appeals ruling in favor of human rights plaintiffs.
The legal question was whether a U.S. court has the authority to hear a case against a foreign corporation "solely on the fact that an indirect corporate subsidiary performs services on behalf of the defendant" in the state where the lawsuit was filed, which in this instance was California.