NYS Legislative Agenda: No Automatic Consent to Jurisdiction by Foreign Businesses Registering to Do Business in New York
No Automatic Consent to Jurisdiction by Foreign Businesses Registering to Do Business in New York
The City Bar opposes legislation which would provide that a foreign corporation’s application for authority to do business in New York constitutes consent to jurisdiction of the courts of this state and a surrender of such application constitutes withdrawal of such consent. The legislation is being advanced as a way to provide certainty regarding personal jurisdiction over foreign entities, which has been disrupted by recent court cases. The City Bar believes that the policy rationales for the proposed legislation should be subject to further debate. The rationale for the legislation does not seem to justify the potential conflicts with the Due Process and Commerce Clauses of the U.S. Constitution. These constitutional issues are already being litigated in New York and other courts, and it would be prudent to await further judicial clarification before enacting such legislation.
Reissued from 2019 NYS Legislative Agenda
OUTCOME
A.7769 / S.7253 Vetoed by the Governor, Memo 79 – December 31, 2021
