X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
New York courts presiding over international disputes now have the authority to issue such provisional remedies as attachments and preliminary injunctions in both domestic and foreign arbitrations under legislation signed by Gov. George E. Pataki last week. The legislation, long promoted by the International Commercial Dispute Committee of the Association of the Bar of the City of New York, brings New York law into line with laws and customs of other states and nations, as well as the rules of international and national arbitration groups. It was drafted to address a longstanding but controversial interpretation of �7502(c) of the Civil Practice Laws and Rules in which the Court of Appeals said state courts could issue orders of attachment and preliminary injunctions only in the aid of purely domestic arbitration cases (see Cooper v. Ateliers de la Motobecane, 57 NY2d 408 [1982]). “This restriction prejudices the rights of New York citizens and companies whose international commercial disputes are arbitrated in New York because it denies them access to these vital provisional remedies, which currently are available only in purely domestic arbitrations,” Sen. John A. DeFrancisco, R-Syracuse, sponsor of the bill, S4837, said in his justification message. DeFrancisco said the “lack of symmetry” meant that U.S. nationals “can be and are subject to these types of provisional remedies under foreign laws in foreign jurisdictions, but are deprived of the opportunity to seek the protections of these provisional remedies under New York law from New York courts.” That made New York a “less desirable jurisdiction for the resolution of international commercial disputes” and diminished the state’s role as “an important international center for the arbitration of major commercial disputes,” the senator said in his bill justification. The law, which is effective immediately, does not change the standards under which provisional remedies are granted under �7503. Rather, it permits New York courts to issue orders of attachment and preliminary injunctions in all appropriate cases. In a report last fall, the International Commercial Dispute Committee said the “narrow restriction on the power of the New York courts” essentially forced New York plaintiffs to “sue in federal court on a contract governed by New York law in order to obtain effective relief.” Lawrence W. Newman, chairman of the city bar committee and a partner at Baker & McKenzie in Manhattan, said the bar group had been seeking to amend the law for years.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.