NY Appellate Ruling Could Revive Terror Victim Lawsuits Against Banks: Attorneys

By Brian Monroe

An opinion by New York State's highest court could reanimate lawsuits against foreign banks alleged to have maintained accounts for blacklisted terrorist groups, even when the institutions have no physical U.S. presence. In late November, the New York Court of Appeals found that the activity of a single correspondent account held by American Express for Lebanese Canadian Bank was sufficient to establish civil jurisdiction over the Beirut-based institution. The clarification followed a request in March by the Second Circuit Court of Appeals to say whether the bank's correspondent activity granted the United States jurisdiction over it. The question stemmed from...