The Supreme Court of Mississippi recently ruled that South Korean company LG Chem could face a lawsuit in Mississippi for providing batteries that powered "e-cigarette devices," even though the company has no physical presence or registered business in the state.
Melissa Dilworth is suing LG Chem after suffering severe burns when the battery in her electronic cigarette exploded. In addition to LG Chem, the plaintiff is also suing the electronic cigarette store, its supplier, and the manufacturer of the electronic cigarette device.
LG Chem is attempting to refute allegations by arguing that the batteries it produces were not made specifically for sale in Mississippi, but rather intended for use by established companies for specific applications. However, the court rejected this argument, finding that the South Korean company had intended to tap into Mississippi's lithium-ion battery market knowing that its products would be sold in the state, either alone or as part of another product. The batteries only reached consumers through third-party distributors selling unauthorized products for personal use.
Similarly, the issue of jurisdiction is not affected by whether the claimed injury was caused by unintentional use of the product. The court believes that this issue concerns the merits of the case rather than a threshold issue of jurisdiction. Ultimately, the court found that Mississippi has a strong interest in adjudicating this dispute, as a resident of Mississippi was injured by a product purchased in Mississippi.
Dilworth's decision serves as a reminder that a company may not necessarily conduct business operations in Mississippi, or even in the United States, but can still be subject to lawsuits in Mississippi. This ruling also indicates that the Mississippi Supreme Court follows a broader commercial test adopted by the Fifth Circuit Court of Appeals.
Companies in Mississippi that are involved in the medical marijuana industry should be aware that medical marijuana products will soon be available for qualified patients in the state. These products will come in various forms, including electronic smoking devices similar to those used by Juul.
Foreign companies producing equipment parts for growing or processing marijuana must be aware that even if they do not specifically sell those parts to people in Mississippi, simply putting them into commercial circulation that leads to the state could have serious consequences. In such cases, any notion that the company is completely outside of Mississippi's jurisdiction should be dispelled.
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