Posts Tagged ‘Samuel Seymour’

Personal Jurisdiction Over Non-U.S. Financial Institutions

Posted by Noam Noked, co-editor, HLS Forum on Corporate Governance and Financial Regulation, on Monday December 24, 2012 at 9:54 am
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Editor’s Note: The following post comes to us from Michael M. Wiseman and Samuel W. Seymour, managing partners of the Financial Institutions Group and Criminal Defense and Investigations Group, respectively, at Sullivan & Cromwell LLP. This post is based on a Sullivan & Cromwell LLP publication by Mr. Wiseman and Mr. Seymour.


On November 20, 2012, the New York Court of Appeals issued an opinion that is of substantial importance to international banks and financial institutions that maintain and use correspondent banking accounts in New York. In Licci v. Lebanese Canadian Bank, SAL (N.Y. Nov. 20, 2012), the Court of Appeals held that a non-U.S. bank’s maintenance and use of such an account to effect “dozens” of wire transfers, worth millions of dollars, on behalf of a non-U.S. client was sufficient to form the basis for personal jurisdiction under the New York State long-arm statute, N.Y. C.P.L.R. § 302(a)(1). Due to the prevalence of U.S. dollar-denominated financial transactions, many non-U.S. banks maintain and use correspondent accounts in New York. As a result, the Licci decision has the potential to increase plaintiffs’ ability to establish personal jurisdiction over non-U.S. financial intuitions in state and federal courts in New York.

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