The New Jersey Supreme Court Exercises Jurisdiction Over A Foreign Manufacturer When a Product Is Placed In The Stream Of Commerce

The New Jersey Supreme Court has recently expanded the court's reach over manufacturers. In Nicastro v. McIntryre Machinery America, Ltd., the court held that foreign or out-of-state manufactureres who place their products in the stream of commerce, by targeting a national market, may be subject to personal jurisdiction in New Jersey. This decision suggests that a foreign manufacturer who knows or reasonably should know that its product is being distributed to a "fifty state market' and might be purchased by a New Jersey consumer has two choices: attempt to bar the distribution and sale of its product in New Jersey in order to avoid the State's exercise of personal jurisdiction or expect to be subject to jurisdiction in New Jersey if one of its products casuses injury to a New Jersey consumer.

For a full discussion of the Nicastro case, click here.