The Second Circuit Limits the Power of Courts to Enforce Asset Restraints and Discovery Orders Against Foreign Banks: Tiffany (NJ) LLC v. China Merchants Bank and Gucci America, Inc. v. Bank of China | White & Case LLP International Law Firm, Global Law Practice
The Second Circuit Limits the Power of Courts to Enforce Asset Restraints and Discovery Orders Against Foreign Banks: Tiffany (NJ) LLC v. China Merchants Bank and Gucci America, Inc. v. Bank of China

The Second Circuit Limits the Power of Courts to Enforce Asset Restraints and Discovery Orders Against Foreign Banks: Tiffany (NJ) LLC v. China Merchants Bank and Gucci America, Inc. v. Bank of China

In Tiffany (NJ) LLC v. China Merchants Bank and Gucci America, Inc. v. Bank of China, the US Second Circuit Court of Appeals issued important rulings, confirming that the limits on the exercise of US general jurisdiction, set forth in the Supreme Court’s landmark decision in Daimler AG v. Bauman, apply equally in the context of relief, including discovery, sought from nonparties. The Second Circuit held that in light of Daimler, a nonparty foreign bank is not subject to general personal jurisdiction simply because it maintains branch operations in New York. Accordingly, the lower court’s authority to compel nonparty banks to comply with a prejudgment asset restraint or to provide extraterritorial discovery would depend on whether the court had specific personal jurisdiction over the bank—i.e., purposeful contacts with the United States by the bank relating to the particular dispute.

Click here to download PDF.

 

This publication is provided for your convenience and does not constitute legal advice. This publication is protected by copyright.
© 2014 White & Case LLP