The legislative session in 2025 of Nevada began and at least one bill is already raising concerns. Bill 158 of the Assembly would extend general competence in Nevada to an entity which “is organized, registered or qualified to do business in accordance with the laws of this State”. In fact, it is simple, the simple fact of registering to do business in Nevada would create general competence on this entity. This could expose entities to prosecution in Nevada which have nothing to do with the state. This could also lead to extreme forum purchases due to the potential to pursue entities anywhere.
AB 158 seems to be motivated by the decision of the United States Supreme Court in 2023 in Mallory c. Norfolk Southern Railway Co., 600 US ___ (2023). Mallory concluded that a Pennsylvania law obliging a foreign company to consent to the general jurisdiction in Pennsylvania as a condition of doing business, there was no violent procedure. However, Mallory Leaves at least one unanswered question. Judge Alito noted in his agreement that although the status does not violate the regular procedure, it could be unconstitutional under the trade clause. This question, however, was not before the court in Mallory. The question of whether a law such as AB 158, as proposed, is constitutional remains unknown.