Supreme Court tightens rules on where companies can be sued

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© Reuters. A general view of the U.S. Supreme Court building in Washington© Reuters. A general view of the U.S. Supreme Court building in Washington

By Andrew Chung

(Reuters) – The U.S. Supreme Court on Tuesday tightened rules on where injury lawsuits may be filed, handing a victory to corporations by undercutting the ability of plaintiffs to bring claims in friendly courts in a case involving Texas-based BNSF Railway Co.

The justices, in a 8-1 decision, threw out a lower court decision in Montana allowing out-of-state residents to sue there over injuries that occurred anywhere in BNSF's nationwide network. State courts cannot hear claims against companies when they are not based in the state or the alleged injuries did not occur there, the justices ruled.

BNSF [BNISF.UL] is a subsidiary of Berkshire Hathaway Inc . (NYSE:)

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