In a decision vindicating important principles of New York law regarding jurisdiction over foreign corporations whose shares are listed on the New York Stock Exchange, the Appellate Division, First Department recently dismissed claims against Excel Maritime Carriers, Ltd., a Bermuda corporation with its principal place of business in Greece. The company had been sued in New York for breach of contract, fraud, and defamation. Prior to the client's engagement of FKSA, the lower court had denied Excel's motion to dismiss for lack of personal jurisdiction and forum non conveniens, holding that it had jurisdiction under CPLR 302(a)(1) because of Excel's stock-listing on the New York Stock Exchange coupled with "ancillary activities" and solicitation of investors in New York.

FKSA was engaged for the appeal, as well as for the completion of discovery and trial if the appeal had been unsuccessful. On appeal, the Appellate Division ruled entirely in favor of FKSA's client and reversed the decision below. The Appellate Division directed entry of judgment dismissing all claims against Excel, finding, as argued by FKSA, that there was no relationship between any transaction of business in New York by Excel and the plaintiff's claims. The court also ruled, as FKSA had argued in the alternative, that the case should have been dismissed on forum non conveniens grounds. Because FKSA's client was a New York Stock Exchange-listed company, and the case raised important issues of personal jurisdiction concerning listed companies, NYSE Euronext filed a brief as amicus curiae in support of Excel.

FKSA attorneys Edward A. Friedman, Robert D. Kaplan, Anne E. Beaumont, and Christopher M. Colorado represented Excel. The case is Georgakis v. Excel Maritime Carriers, Ltd., Index No. 650322/08 (Supreme Court, New York County).