/>iAmid the waning hours of its spring legislative session, the Illinois General Assembly passed a bill which, if the governor signs, would significantly expand Illinois courts’ jurisdictional reach to foreign corporations in toxic tort litigation.
Senate Bill 328’s New Rules of General Jurisdiction
Senate Bill 328 would amend Illinois statutes governing general personal jurisdiction and the transaction of business in the state. These amendments may impact foreign corporations doing business in Illinois.
- For foreign corporations registered to transact business in Illinois, Senate Bill 328 would create a quid pro quo: In exchange for the benefits of doing business in Illinois, a foreign corporation that registers in Illinois and thus “obtains or continues to maintain the right to transact business in the State consents to the exercise of general jurisdiction by [Illinois] courts.” This consent occurs upon registering in Illinois or, for a company already registered, upon the next filing deadline for its annual report.
- For foreign corporations not registered to transact business in Illinois, they are “deemed to have consented to general jurisdiction . . . to the same extent as if [they] were registered.” This consent begins when a foreign corporation begins transacting business in Illinois.
These changes would apply only to foreign corporations sued in actions alleging injury or illness resulting from exposure to a toxic substance when the court has specific, personal jurisdiction over at least one co-defendant. The Uniform Hazardous Substances Act of Illinois 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.” 430 ILCS 35/2-5.
The Potential Reach of Senate Bill 328’s Amendments
Senate Bill 328 would expand Illinois courts’ jurisdiction over foreign corporations in toxic tort litigation. General jurisdiction is broad, potentially subjecting a foreign corporation to Illinois courts even for claims unrelated to its acts in Illinois. In Mallory v. Norfolk Southern Railway Co., 600 U.S. 122 (2023), the U.S. Supreme Court upheld the constitutionality of a similar consent-based jurisdiction statute enacted in Pennsylvania.
Understanding Senate Bill 328 proves especially important for corporations that distribute substances that the Uniform Hazardous Substances Act defines as toxic. A foreign corporation registered to do business in Illinois may be subjected to a lawsuit in Illinois, regardless of where the corporation is headquartered or domiciled.
Nevertheless, these amendments have limits. The amendments apply only to foreign corporations in actions alleging injury or illness resulting from exposure to a toxic substance. In addition, the amendments require the presence of a co-defendant subject to Illinois personal jurisdiction. In toxic tort cases, however, plaintiffs commonly sue multiple defendants, and national companies with branches and customers in many states face the possibility that these amendments may open the Illinois courthouse doors to a lawsuit. Consent to general jurisdiction also terminates depending on whether the foreign corporation is registered in Illinois. For foreign corporations registered in Illinois, their consent terminates only upon their formal withdrawal from the state. For foreign corporations not registered in Illinois, their consent begins upon transacting business in Illinois and remains effective for 180 days following the commission of every act transacting business in the state.
Despite these limits, Senate Bill 328 would expand personal jurisdiction for corporations dealing in toxic substances. It will be sent to Gov. Pritzker for signature. If he does not act within 60 days of receiving it, Senate Bill 328 will automatically become law.
