Committee Reports

Motion for Leave to File Brief for Amicus Curiae Association of the Bar of the City of New York in Support of Defendants-Respondents

SUMMARY 

The City Bar, through our Council on Judicial Administration, filed an amicus brief in the New York Court of Appeals in Aybar v. Aybar (APL-2019-00239, Queens Cty. Ind. No. 706909/15, Appellate Division 2nd Dept. Dkt. Nos. 2016-06194 and 2016-07397). The City Bar sought leave to file the brief “because it is well-situated to comment on the question in this case, which is whether a foreign corporation that complies with the Business Corporation Law (“BCL”) by appointing the New York Secretary of State as its agent for service of process consents to the general jurisdiction of the State’s courts.” The City Bar was closely involved in the Joint Legislative Committee to Study Revision of Corporation Laws’s expansive study of the corporate laws in New York and the committee’s submission of the legislative proposal, which later became the BCL. “Given this background and its extensive involvement and contribution to the drafting of the BCL, the City Bar is uniquely positioned to provide the Court with information on, inter alia, any statutory basis with respect to personal jurisdiction generally and consent-by-designation specifically under the BCL, the BCL’s legislative history in relation to the adoption of the consent-by-designation provision, New York law on consent-by-designation and New York courts’ interpretation thereof.” As set forth in the brief, appointing the secretary of state as its agent for service of process does not subject a foreign corporation to general jurisdiction: the text of the BCL does not create a consent-by-designation rule, the legislative history does not support inferring such a rule, and such rule would run contrary to case law and is not supported by common law.