Suits against out-of-state corporations are increasingly common in New York State courts. We previously examined a N.Y. Senate Assembly Bill (S7476) that was poised to potentially make all out-of-state corporations registered to do business in New York subject to lawsuits in New York, even when sued by out-of-state plaintiffs on claims wholly unrelated to New York.
One year later, the lines of that personal-jurisdiction battleground have decisively shifted. Governor Kathy Hochul has now vetoed S7476, and along with that veto New York courts have treated consent-by-registration jurisdiction as a dead letter. We anticipate, however, that this welcome development may nevertheless prove cold comfort to large national or global companies that do business in New York.