Sullivan & Cromwell discusses SEC Guidance on Approach to Forum Selection in Contested Actions

The SEC’s Division of Enforcement has issued guidelines explaining the factors it will consider in determining whether to bring enforcement actions as administrative or judicial proceedings. The SEC recently has been criticized for its increased use of administrative proceedings to resolve novel applications of the securities laws. In the newly issued guidance, the Division identified a non-exhaustive list of four factors that the Division may consider in determining the proper forum for an enforcement action, but the Division also made clear that the circumstances of each particular case will ultimately govern where the case is brought. The Division reiterated its … Read more

Sullivan & Cromwell discusses Forum Non Conveniens Doctrine in Cases Having Peripheral Connection to New York Banking System

In an opinion issued on April 8, 2014,[1] the New York Court of Appeals unanimously dismissed on forum non conveniens grounds a case arising from a foreign exchange transaction between a bank in the United Arab Emirates and a general partnership in Saudi Arabia, where the only nexus between the transaction and the State of New York was the “use of New York banks to facilitate dollar transfers.” In reversing the Appellate Division, First Department, the Court emphasized that, although New York has a compelling interest in maintaining the integrity of its banks, that interest “is not significantly threatened” merely … Read more