Articles Posted in International Law

by
Plaintiffs were several dozen national and international citizens who resided in Israel and were injured in rocket attacks allegedly launched by Hizballah during the Second Lebanon War. Plaintiffs brought suit against the Lebanese Canadian Bank (LCB), a defunct bank headquartered in Beirut, claiming that LCB assisted Hizballah in committing the illegal attacks. The lawsuit was removed to the U.S. District Court for the Southern District of New York. Plaintiffs asserted personal jurisdiction over LCB under New York's long-arm statute. The district court granted LCB's motion to dismiss for lack of personal jurisdiction. The Court of Appeals accepted questions of law from the U.S. Second Circuit Court of Appeals and answered (1) a foreign bank's maintenance of a correspondent bank account at a financial institution in New York and use of that account to effect dozens of wire transfers on behalf of a foreign client constitutes a "transaction" of business in New York within the meaning of the long-arm statute; and (2) Plaintiffs' claims under the Anti-Terrorism Act, the Alien Tort Statute, or for negligence or breach of statutory duty in violation of Israeli law arose from LCB's transaction of business in New York within the meaning of the long-arm statute. View "Licci v. Lebanese Canadian Bank, SAL" on Justia Law

by
Plaintiffs, companies that acquired Floating Rate Accrual Notes (FRANs), commenced numerous separate actions against Argentina seeking damages for the nation's default on the bonds and the claims were subsequently consolidated. At issue, through certified questions, was whether Argentina's obligation to make biannual interest-only payments to a bondholder continued after maturity or acceleration of the indebtedness, and if so, whether the bondholders were entitled to CPLR 5001 prejudgment interest on payments that were not made as a consequence of the nation's default. The court answered the certified questions in the affirmative and held that the FRANs certificate required the issuer to continue to make biannual interest payments post-maturity while the principal remained unpaid; having concluded that the obligation to make biannual interest payments continued after the bonds matured if principal was not promptly repaid, and that nothing in the bond documents indicated that the payments were to stop in the event of acceleration of the debt, it followed that Argentina's duty to make the payments continued after NML Capital accelerated its $32 million of the debt in February 2005; and based on the court's analysis in Spodek v. Park Prop. Dev. Assoc., the bondholders were entitled to prejudgment interest under CPLR 5001 on the unpaid biannual interest payments that were due, but were not paid, after the loads were either accelerated or matured on the due date. View "NML Capital v. Republic of Argentina" on Justia Law