NY Courts Have Jurisdiction Over Out-of-State, Non-Merged Firms

New York courts can exercise jurisdiction over non-state-based companies that acquire the liabilities and assets of another entity that has done business there, even if they never merge, the state’s top court ruled Thursday.

The unanimous opinion from the New York Court of Appeals opens the door for the US Court of Appeals for the Second Circuit to exercise personal jurisdiction over Lebanese bank Société Générale de Banque au Liban SAL, the successor of Lebanese Canadian Bank, in a lawsuit alleging the bank financially supported terrorist group Hezbollah in the period leading up to its 2006 attack against Israel.

Allowing ...