New York Court of Appeals Answers Questions on When Jurisdiction Can Be Established Based on New York Correspondent Accounts
11 January 2013
Mayer Brown Legal Update
The New York Court of Appeals has confirmed that, while maintaining a correspondent banking account will not support the exercise of jurisdiction over a non-US bank in matters unrelated to the non-US bank’s use of the correspondent bank account, correspondent banking transactions could establish New York jurisdiction over banks in cases with a close nexus to those transactions. In the wake of this decision, plaintiffs likely will try to subject non-US banks to the jurisdiction of New York courts in cases that have little connection to New York.