Defendants’ Prior Business Dealings Insufficient to Find Defendants Regularly Conducted Business in Philadelphia County at the Time Lawsuit Was Filed

The plaintiffs sustained physical injuries from a helicopter crash in Afghanistan and commenced a civil lawsuit in Philadelphia County, Pennsylvania. In their pleadings, the plaintiffs alleged the defendants regularly conducted business in Philadelphia County. The defendants filed preliminary objections that challenged venue. After discovery and additional briefs on venue, the trial court overruled the preliminary objections.

On appeal, the Superior Court of Pennsylvania ruled the pertinent timeframe for venue analysis was “at the time the suit was initiated.” The court explained: “‘[the] question of improper venue is answered by taking a snapshot of the case at the time it is initiated: if it is proper at that time, it remains proper throughout litigation.’” The Court ruled the evidence did not support a finding that the defendants regularly conducted business in Philadelphia County at the time the lawsuit was filed. The court held the defendants’ prior business with a Philadelphia company was insufficient to support a finding that they regularly conducted business in Philadelphia County at the time the lawsuit was filed. 

The court also held there was no evidence the defendants performed core business activities in Philadelphia County and incidental dealing was insufficient to establish venue. 

The court further held that a corporation is not subject to venue based solely upon the business activities of a sister corporation, since they are separate and distinct legal entities. 

As such, the Superior Court held that venue in Philadelphia County was improper. 

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