L-R: Mylan L. Denerstein, Lee R. Crain, and Gregory V. Momjian of Gibson Dunn & Crutcher. Courtesy photos Coming Soon to Court: General Personal Jurisdiction of All Out-of-State Businesses in NY
If Gov. Kathy Hochul signs the bill, New York state and federal courts would be able to hear lawsuits against out-of-state corporations based on conduct that took place outside of New York simply because the corporation does unrelated business here.
July 04, 2023 at 10:02 AM
6 minute read
Analysis
On June 7, the New York Legislature passed a bill that would require every corporation registered to do business in New York to consent to be sued in New York courts. See N.Y. Senate-Assembly Bill S7476 (2023). If Gov. Kathy Hochul signs the bill, New York state and federal courts would be able to hear lawsuits against out-of-state corporations based on conduct that took place outside of New York simply because the corporation does unrelated business here. The practical effects of this bill on corporations registered to do business in New York—big and small—as well as on the New York courts which already have substantial dockets could be significant.
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