Note from the Editor
It has been a busy couple of months in New York, and all the news seems to be focused on Rule B at the moment. Unless you’ve been hibernating since mid-October, you will have heard about the Second Circuit’s abrupt about-face in Shipping Corp. of India v. Jaldhi, reversing its 2002 ruling in Winter Storm that had allowed attachment of electronic funds transfers in New York. (If you need a refresher, please refer to Jeremy Harwood’s article on the cover of this issue of Mainbrace.)
Whatever your views of the correctness of this decision, it seems hard to dispute that the ruling has had a dramatic impact on a very large number of pending claims, both here and abroad. Many parties expended substantial sums in pursuing claims in reliance on the security they had obtained, and they are now finding themselves in a very uncertain position. According to the Second Circuit’s even more recent decision in Hawknet v. Overseas Shipping Agencies, however, which held that Jaldhi must be applied retroactively because it is a “jurisdictional” ruling, prejudice doesn’t seem to be part of the inquiry.
There are still battles to be fought on this front, and undoubtedly more surprises to come. We will, as always, strive to keep our clients updated on new developments and help them navigate the ever-changing legal landscape.
Notice: The purpose of this newsletter is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. The Advisory should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel. Additional information on Blank Rome may be found on our website www.blankrome.com.