New York State Takes The Lead To Settle International Contract Disputes
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International Law can be a problematic area for resolving contract disputes. The problems are magnified when the involved parties are international players. New York State has taken steps to smooth the often rough road and international persons and groups are finding the new procedures comparatively easy to follow.
What To Do In A Sophisticated, International Dispute?
New York has successfully positioned itself as an attractive forum for resolving international commercial disputes. The flexible rules permit contracting parties to agree to the specific procedures best suited for their needs. It’s a choice which west best for parties who put in due diligence as far as negotiating only just the choice of forum, but also the procedural mechanisms involved.
New York is a sophisticated and international city. It is a center for international banking, finance and commerce. In 1993, the state courts established a Commercial Division to grow expertise in managing domestic and international commercial cases. Since the founding, the division has upgraded its rules and procedures. In the meantime it has become a forum of choice for complex matters. Individuals and companies into commercial agreements should consider is the state is a viable option for resolving disputes. Foreign groups in commercial transactions with U.S. parties often may obtain important concessions on other issues as well.
Some international groups may find themselves litigation in the state without any advance choice. For instance, when international contracts have no forum selection clause, New York can be the only — or best — place to obtain personal jurisdiction. At the same time, given the relatively broad views of personal jurisdiction found in New York, foreign individuals may find they are taken to court in New York despite their desires.
Under NY-BCL 1314, New York courts do not have subject matter jurisdiction to settle disputes between two non-New York businesses, unless the cause of one action is connected to New York. But New York allows contracting parties to agree to a New York forum even if neither have any New York connections. The only requirement is to comply with NY-GOL 5-1401 and 5-1402.
Parties, under 5-1401, with commercial contracts valued over $250,000 may agree by contract to permitting New York rules apply.
The state has put itself into an attractive forum to resolve international commercial disputes. The rules are flexible which allow the parties to agree to specific procedures fitting to their needs.