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Simmons v. Mark Lift Industries

10/24/2005

in one state, conclusive evidence in the courts of another State, or of the United States, of the matter adjudged) (Scalia, J., concurring); World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 291 (1980) ("A judgment rendered in violation of due process is void in the rendering State and is not entitled to full faith and credit elsewhere. . . . Due process requires that the defendant be given adequate notice of the suit . . . and be subject to the personal jurisdiction of the court."); Barnes v. Buck, 346 A.2d 778, 782 (Pa. 1975) ("the full and faith and credit clause does not require that we give recognition to a judgment rendered without jurisdiction or without notice and a fair opportunity to be heard; indeed, due process of law mandates that we not do so."); Pector v. Meltzer, 689 A.2d 814, 816 (N.J. Super. App. Div. 1997) (stating the "well-established principle that a court of this State, when asked to enforce a foreign state judgment, must deny full faith and credit if the rendering court lacked in personam jurisdiction, subject matter jurisdiction, or failed to provide adequate notice and an opportunity to be heard") (emphasis in original).


C. PREEMPTION


Terex argues the U.S. Bankruptcy Code, specifically 11 U.S.C.A. ยง 363(f) (West 2004), preempts any attempt under state law to impose successor liability for product liability claims. I disagree.


"The Supremacy Clause provides that ' his Constitution, and the Laws of the United States which shall be made in Pursuance thereof . . . shall be the supreme Law of the Land . . . any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.' It is basic to this constitutional command that all conflicting state provisions be without effect." Maryland v. Louisiana, 451 U.S. 725, 746 (1981) (quoting U.S. Const. art. VI, cl. 2). It is a "familiar and well-established principle that the Supremacy Clause . . . invalidates state laws that interfere with or are contrary to federal laws." Hillsborough County v. Automated Medical Labs, Inc., 471 U.S. 707, 712 (1985) (internal quotes omitted). However, " onsideration under the Supremacy Clause starts with the basic assumption that Congress did not intend to displace state law." Maryland, 451 U.S. at 746.


In the interest of avoiding unintended encroachment on the authority of the states, a court interpreting a federal statute pertaining to a subject traditionally governed by state law will be reluctant to find preemption. Thus, preemption will not lie unless it is the clear and manifest purpose of Congress. Rice v. Santa Fe Elevator Corp., 331 U.S. 218, 230 (1947). Evidence of Congress' intent to preempt state law is sought in the text and structure of the statute at issue. Shaw v. Delta Air Lines, Inc., 463 U.S. 85, 95 (1983). Congress did not intend the Bankruptcy Code to preempt all state laws. Midlantic Natl. Bank v. N.J. Dept. of Environ. Protection, 474 U.S. 494, 506-07 (1986) (holding that bankruptcy trustee may not abandon environmentally contaminated property in contravention of state law that is reasonably designed to protect public health or safety).


Federal law may preempt state law in three ways. First, Congress may expressly define the extent to which it preempts state law. Second, Congress may occupy a field of regulation, impliedly preempting state law. Third, a state law may be preempted to the extent it conflicts with federal law. Michigan Canners & Freezers Assn., Inc. v. Agricultural Mktg. & Bargaining Bd., 467 U.S. 461, 469 (1984); Professional Samplers, Inc. v. S.C. Empl. Sec. Commn., 334 S.C. 392, 397, 513 S.E.2d 374, 377 (Ct. App. 1999). Such a conflict arises when either compliance with both laws is impossible or

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