California courts lack jurisdiction over a non-resident corporation which functions solely as a parent or holding company with no California operations or presence except that of a separate corporate subsidiary, according to a recent decision of the California Courts of Appeal.  Under California law, merely owning or investing in a subsidiary does not involve direct contacts in California unless the subsidiary is the parent company’s alter ego, agent or representative service provider, performing local functions that the parent company would otherwise directly perform itself.  Accordingly, under direction of the California Supreme Court, the Court of Appeal in this case dismissed a parent company defendant from a case concerning wrongful-termination employment claims by a former employee of its California subsidiary (BBA Aviation PLC v. Superior Court (Engen), California Court of Appeal No. B219289, November 23, 2010)

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