The World in U.S. Courts: Fall 2013 - Personal Jurisdiction
Plaintiff, a former civilian contractor in Iraq, filed suit against his former employer, its parent corporation, and another subcontractor, Daoud & Partners, under the False Claims Act, alleging the defendants engaged in a scheme to defraud the United States by inflating costs of laundry services on military bases. Daoud & Partners, a Jordanian company, moved to dismiss for lack of personal jurisdiction. The Court rejected Daoud’s motion, holding that the company had sufficient contacts with the United States such that it could reasonably anticipate being sued in U.S. courts. Specifically, Daoud had worked as a subcontractor for the U.S. government for over ten years, and its employees had travelled to the United States for business meetings. Because Daoud directly targeted American companies and did business with the U.S. government, the Court found Daoud had purposefully availed itself of the United States, as a whole, which is sufficient under the False Claims Act.