In Re: Chinese-Manufactured Drywall Products Liability Litig.

This is a products liability case arising from the sale of allegedly defective drywall from a Chinese manufacturer, TG, through a Virginia distributor, Venture, to plaintiffs. The court applied the Fourth Circuit, three-party inquiry to determine whether the exercise of specific jurisdiction over TG comported with Due Process. The court concluded that TG purposefully availed itself to Virginia; TG's contacts with Virginia formed the basis for this suit; and it was constitutionally reasonable for the district court to have personal jurisdiction over TG. Therefore, the court concluded that the district court had personal jurisdiction over TG with regard to Plaintiff-Intervenors, and all Original Plaintiffs who have met their burden in proving that their claims arose out of TG's contacts with Virginia. The court also concluded that the district court did not err by refusing to vacate the Default Judgment against TG where the district court weighed several relevant factors, including the merit of TG's asserted defense, before concluding that vacatur was unwarranted. Accordingly, the court affirmed the judgment of the district court. View "In Re: Chinese-Manufactured Drywall Products Liability Litig." on Justia Law