The Impact of US Lawsuits Against Non-US Banks

Two recent developments in U.S. law may be of special interest to non-U.S. clients, especially foreign banks.

First, the highest appellate state court in New York issued a decision on Nov. 20, 2012, holding that a Lebanese bank may be subject to personal jurisdiction in New York courts because the bank makes use of a correspondent bank account at a New York bank on behalf of a client where the legal claim is connected to the use of the correspondent account.

Second, in a separate case, the Supreme Court of the United States recently heard arguments concerning whether non-U.S. corporations may be liable under the U.S. Alien Tort Statute for conduct outside the U.S. and whether such claims can be asserted against corporations.