This section contains the nature of the case and procedural background.

Compagnie (P) was a Delaware corporation jointly owned by a Pennsylvania company and the Republic of Guinee. Compagnie (P) obtained excess insurance against business interruption from ICI (D). A business interruption allegedly occurred, and D refused to pay P's claim. P sued in federal court in Pennsylvania, and D contested the existence of personal jurisdiction. The foreign insurance companies made special appearances to contest jurisdiction. P made requests for discovery information relevant to the jurisdiction issue. D failed to comply with an order to disclose the information and the court, under F.R.C.P. 37(b)(2)(A), imposed sanctions, which ordered that the facts establishing personal jurisdiction were deemed to exist. D appealed, contending the court had no power to order the existence of jurisdiction.

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