October 19, 2010
STATE BAR PRESIDENT STEPHEN P. YOUNGER CREATES TASK
FORCE ON NEW YORK LAW IN INTERNATIONAL MATTERS
Task Force to Focus on Strengthening New York Law
as an International Legal Standard and Encouraging Parties to use New
York as a Forum for Dispute Resolution
Seeking to highlight the critical role that New York domestic law
plays in a wide variety of cross-border business and international
commercial transactions, State Bar President Stephen P. Younger of New
York (Patterson Belknap Webb & Tyler LLP) today announced the
formation of the Task Force on New York Law in International Matters.
The task force will undertake a systematic review of New York law to
gain a more critical understanding of its strengths as an international
standard and will formulate proposals designed to promote the use of New
York law in cross-border transactions and to encourage parties to use
New York as a forum for the resolution of disputes.
“As the financial capital of the world, it is imperative that
lawyers, business leaders and commercial investors understand the
international dimension that New York law plays in guiding cross-border
transactions and resolving international disputes,” said Younger.
“Our aim is not just to educate the legal community and the
business world about the benefits of using New York law, but to advance
comprehensive recommendations that will ensure New York law retains its
position as an international legal standard for commercial transactions
in the global marketplace.”
The task force will also look at the role of New York as an
international center for dispute resolution. New York has long
been a popular venue for international arbitration and New York’s
Commercial Division regularly attracts litigants from around the
globe.
Co-chaired by Joseph T. McLaughlin of New York (Bingham McCutchen
LLP) and James B. Hurlock, former chairman of White & Case LLP, the
Task Force on New York Law in International Matters will include experts
in the fields of commercial law, arbitration and litigation, as well as
leaders of New York’s business and financial sectors.
Specific issues to be addressed by the task force include: increasing
awareness among New York lawyers of the role domestic New York law plays
in cross-border commerce, examining the competition between New York law
and other legal systems in the global legal marketplace, studying the
advantages and disadvantages of litigating in New York courts and
arbitration facilities, and examining the use of New York law in other
areas such as trusts and non-profit law.
Increasing Awareness of and Promoting New York
Law
The importance of New York domestic law in the formation,
documentation and administration of countless cross-border transactions
and other business deals needs to be better understood and appreciated
by attorneys and business leaders. It is widely recognized that the
great majority of cross-border transactions – perhaps as many as
90 percent – are negotiated and drafted in the English
language. Of these, a great number are governed, at the
parties’ choice, by New York law. Moreover, New York law clauses
also have a substantial positive impact on generating economic
development in New York State.
It is essential to underscore that these transactions are not
governed by special rules of New York law expressly directed to
international situations. Rather, these are the same rules of domestic
New York law – especially those of New York contract, commercial,
corporate and franchise law, but also those of New York agency law and
trust law – that apply to New York residents themselves.
Therefore, it is imperative that attorneys working to resolve
problems controlled by New York law or in coming up with new solutions
under New York law be aware that any resolution or solution has
potentially significant impacts on the reputation of New York law around
the globe as well as within the borders of New York. The task force will
seek to encourage and mobilize the intellectual and professional
resources of experienced attorneys to assist in the continued
development of domestic New York law as a force in private international
law throughout the world.
The first meeting of the task force is scheduled for Thursday,
October 21st at Bingham McCutchen in New York City.
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The 77,000-member New York State Bar Association is the official
statewide organization of lawyers in New York and the largest voluntary
state bar association in the nation. Founded in 1876, State Bar programs
and activities have continuously served the public and improved the
justice system for more than 130 years. For more information, please
visit www.nysba.org.
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