Foreign Manufacturers & Jurisdiction: Suing Companies Outside the U.S.

At GetCompensation.law, we know firsthand that dangerous and defective products don’t just come from U.S.-based companies. Today’s global supply chains mean that many of the goods Americans use every day—cars, electronics, medical devices, household items, even children’s toys—are designed, manufactured, or assembled abroad. When one of these products causes a serious injury, victims often face a unique and daunting challenge: how do you sue a foreign manufacturer in a U.S. court?

Unlike traditional product liability cases, claims against foreign companies raise additional hurdles such as personal jurisdiction, service of process abroad, and complex insurance arrangements that cross national borders. This article explores the legal strategies, procedural obstacles, and practical considerations involved in keeping these cases in U.S. courts—where victims stand the best chance of securing meaningful compensation.

Understanding Jurisdiction Over Foreign Manufacturers

For any lawsuit to proceed, the court must have personal jurisdiction over the defendant. In the context of foreign manufacturers, this often becomes the first—and fiercest—battle.

U.S. courts typically rely on the minimum contacts test, asking whether the foreign company has sufficient connections with the forum state. Did the manufacturer purposefully direct its products toward the U.S. market? Was the product distributed through established channels that foreseeably reached American consumers? If the answer is yes, courts are more likely to assert jurisdiction.

For example, if a German auto-parts company supplies brake systems to a car brand that sells millions of vehicles in the U.S., that company has deliberately placed its products into the stream of U.S. commerce. Courts often see that as enough to allow jurisdiction, even if the foreign company has no office or employees in the U.S.

Still, foreign defendants frequently argue the opposite—claiming they didn’t directly sell to U.S. consumers or that they only dealt with intermediaries abroad. Without strong legal advocacy, these arguments can derail a victim’s case before it truly begins.

Real-World Example: The Takata Airbag Scandal

One of the most infamous examples of defective foreign products harming Americans is the Takata airbag recall. Takata, a Japanese manufacturer, produced airbags that could explode with deadly force, sending shrapnel into drivers and passengers. These airbags were installed in vehicles made by Honda, Ford, BMW, and many other automakers sold in the U.S.

Victims injured by these airbags faced complicated litigation because Takata was headquartered in Japan and had limited U.S. presence. Attorneys had to fight hard to establish personal jurisdiction, prove Takata’s knowledge of the defect, and navigate overlapping liability among Takata, automakers, and their insurers.

This case illustrates how global supply chains allow defective products to cross borders with ease, but holding foreign companies accountable requires persistence and sophisticated legal strategies.

Service of Process Abroad

Even if a court accepts jurisdiction, the plaintiff must still formally notify the foreign defendant of the lawsuit. This is called service of process, and when dealing with foreign entities, it’s rarely simple.

Most countries follow the Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents, which sets out specific rules for serving legal documents across borders. Depending on the country, this process can take months, involve translations into multiple languages, and require navigating local bureaucracies.

Improper service can lead to devastating consequences: the case may be dismissed on a technicality, wasting precious time and resources. Experienced product liability attorneys know how to comply with these international rules while minimizing delay, ensuring that the case moves forward in U.S. courts.

Insurance and Layers of Defense

Another complication arises from the way insurance coverage is structured for foreign manufacturers.

These companies often rely on multiple layers of insurance, including:

• Domestic distributors or subsidiaries carrying their own U.S. policies.
• Foreign insurers with limited or no obligations under U.S. law.
• Excess or umbrella policies that may require litigation abroad to enforce.

Insurers routinely attempt to shift blame or argue that coverage is limited outside their jurisdiction. They may claim that a U.S. policyholder—such as a distributor—is solely responsible, while the foreign parent company’s insurer denies coverage altogether. In some cases, insurers attempt to force victims into international arbitration, which is less favorable than U.S. courts.

Without legal representation, victims can quickly find themselves stuck between insurers passing the buck, each one pointing to another policy or jurisdiction. A skilled attorney can untangle these layers, identify every possible source of coverage, and pressure insurers to pay fair compensation in the U.S. legal system.

Strategies to Keep Cases in U.S. Courts

Foreign defendants almost always try to move lawsuits out of U.S. courts, arguing for dismissal or for transfer to their home country. Plaintiffs, however, benefit enormously from litigating in the U.S., where consumer protections are stronger and damages can be far higher.

Attorneys use several strategies to ensure cases remain stateside:

• Identifying U.S.-based distributors or subsidiaries as co-defendants, tying the case directly to American soil.
• Pointing to forum selection clauses in contracts that allow or require litigation in U.S. courts.
• Demonstrating foreseeability, arguing that the foreign company knew its products would end up in U.S. markets.
• Invoking state long-arm statutes, which extend jurisdiction over companies that sell harmful products into the state, even indirectly.

Each of these strategies requires deep legal expertise and careful factual investigation. Success can mean the difference between a dismissed case and a multimillion-dollar settlement.

Challenges Victims Commonly Face

While strategies exist, victims of defective foreign products often face uphill battles, including:

• Jurisdictional motions to dismiss, where the defendant challenges the court’s authority to hear the case.
• Procedural delays, especially when service abroad or translation requirements drag on for months.
• High litigation costs, as international discovery may involve flying attorneys overseas, hiring interpreters, and complying with foreign data-protection laws.

Consider the case of foreign-made children’s toys recalled for lead paint contamination. Parents who tried to sue the overseas manufacturers faced significant pushback from defendants who denied responsibility or argued that lawsuits should be filed abroad. Without skilled attorneys, many families would have walked away with nothing despite the obvious harm caused to their children.

These examples show that success isn’t guaranteed—but strong legal counsel dramatically increases the odds of overcoming these challenges.

Why Experienced Product Liability Attorneys Matter

Foreign manufacturer cases are not do-it-yourself lawsuits. They require attorneys with:

• Expertise in jurisdictional law, to argue effectively against dismissal.
• Experience with cross-border litigation, including service abroad and insurance negotiations.
• Resources to fight large corporations, including access to international experts and investigators.

At GetCompensation.law, our network of top-ranked personal injury firms has successfully taken on global manufacturers and their insurers. We understand the tactics these companies use and we’re not afraid to go to war to protect injured consumers.

Conclusion

Globalization means that harmful products can come from anywhere in the world—but it doesn’t mean that victims should be left without justice. Suing a foreign manufacturer in U.S. courts is complex, involving issues of jurisdiction, service abroad, and international insurance disputes. Yet with the right legal strategy, victims can hold foreign corporations accountable and recover the compensation they deserve.

The stakes are high. Medical bills, lost wages, long-term disability, and emotional suffering can devastate families. Insurance companies and foreign manufacturers know this, and they work tirelessly to minimize payouts. That’s why having an experienced trial attorney by your side is critical.

If you or a loved one has been harmed by a defective product manufactured overseas, don’t try to fight this battle alone. Contact GetCompensation.law today to learn how much the insurance company—and the foreign manufacturer—really owes you. Our lawyers are ready to go to war on your behalf.