A New Tool For Obtaining Jurisdiction In New York CourtsFebruary 2, 2017
In the past, a foreign bank’s use of correspondent bank accounts in the United States to facilitate wire transfers has not necessarily given New York courts a sufficient basis for jurisdiction over the bank. But a recent 4-3 Court of Appeals decision may change that. In Rushaid et al. v. Pictet & Cie et al., No. 180, 2016 BL 387923 (N.Y. Nov. 22, 2016), Judge Jenny Rivera, writing for the four-person majority (and overturning decisions of both the First Department and the Commercial Division), ruled that a foreign bank’s “repeated, deliberate” use of correspondent bank accounts in the United States is enough to establish New York jurisdiction.
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