FSIA 0 : EFT Transfer Jurisdiction 1

In an October 16, 2009 decision, the United States Court of Appeals for the Second Circuit reversed its Winter Storm doctrine in the matter The Shipping Corporation of India Ltd v. Jaldhi Overseas Pte Ltd., docket number 08-3477, but skipped a decision on an underlying FSIA issue because it would become moot.

Under Winter Storm, the presence of Dollar-denominated funds in the Second Circuit for merely a split second could trigger attachments in certain maritime matters. The court explains the critical views and economic effects of the precedent. It also details how subsequent decisions changed some of its effects on the EFT practice.

By expressly overruling Winter Storm, the appellate court in New York City intends to increase clarity and legal certainty which should be welcomed by the banking sector and U.S. marshalls in its district as well as foreign defendants who - aside from EFT transfers in United States currency - lack other connections to the United States courts in the district. -- Clemens Kochinke, partner, Berliner, Corcoran & Rowe, LLP, Washington, DC.

Fri, 11:34:54 16 Oct 2009 / Embassy Law Link

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