True or False--- In the Hartford Fire Insurance Co. case, the U.S. Supreme Court determined that...

True or False--- In the Hartford Fire Insurance Co. case, the U.S. Supreme Court determined that it could not assert jurisdiction over European companies in competition matters unless the companies had a direct physical presence in a U.S. state.

Expert Solution

Hartford Fire Insurance Co. v. California, 509 U.S. 764 (1993)^[1], was a controversial United States Supreme Court case which held that foreign companies acting in foreign countries could nevertheless be held liable for violations of the Sherman Antitrust Act if they conspired to restrain trade within the United States, and succeeded in doing so.

Various reinsurance companies in the United Kingdom had conspired through Lloyd's of London to coerce U.S. insurers into abandoning certain policy practices that were beneficial to consumers, but costly to the reinsurers. When U.S. states (including the named plaintiff, California) filed a lawsuit alleging antitrust violations, the defendant companies raised a number of defenses, asserting that the United States lacked jurisdiction over their acts, that various statutes exempted them from liability, and that principles of comity dictated that they should not be brought before a U.S. court. The United States district court in which the case was brought accepted these arguments and dismissed the case. The Court of Appeals reversed the dismissal.

Since court of appeals reversed the decision , it is FALSE to state that US supreme court determined that it could not assert jurisdiction over European companies in competition matters unless the companies had a direct physical presence in a US state.

ANSWER : FALSE

keosha answered 2 years ago

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