JPMorgan Chase Bank v. Stream Traffic (BVI) Infrastructure Ltd , 536 US 88 (2002), is a case in which the United States Supreme Court declares that corporations governed by UK foreign legal law are considered "citizens or subjects from a foreign country "for the purposes of federal court jurisdiction.
Video JPMorgan Chase Bank v. Traffic Stream (BVI) Infrastructure Ltd.
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Chase Manhattan Bank (later JPMorgan Chase) sued Traffic Stream (BVI) Infrastructure Ltd., a company incorporated in the British Virgin Islands, in a financing dispute. Chase filed a lawsuit in the United States District Court for the Southern District of New York. Federal jurisdiction is based on alienage under 28 U.S.C. 1332 (a) (3), that the lawsuit is between a US corporation and "a national or subject of a foreign country." The District Court ruled for Chase, and the Traffic Flow appealed.
Although there are no jurisdictional issues filed in the District Court, at the time of the appeal, the Second Circuit requested
Traffic Flows filed a petition to the US Supreme Court for certiorari , with the support of a brief amicus curiae from the British Government. The court agreed to hear the case.
Maps JPMorgan Chase Bank v. Traffic Stream (BVI) Infrastructure Ltd.
Court Opinion
Judge David H. Souter wrote an opinion to the Court unanimously, reversing the decision of the Second Circuit and stating that British Virgin Islands companies such as Traffic Stream are actually considered "citizens or subjects of foreign countries" for jurisdictional purposes.
The Court observes that Congress has allowed federal courts to hear civil actions involving more than $ 75,000 between "citizens and citizens or subjects of foreign countries." A company incorporated under the laws of a foreign country is regarded as a national of that foreign country. The view of the Second Circuit is that because the British Virgin Islands are an area dependent on England rather than a sovereign state under British and international law, a British Virgin Islands company is not a citizen or subject of a foreign country for the purpose of alienage jurisdiction.
The Supreme Court disagrees, finding the differences drawn by the Second Circuit to "be completely beside the points of the law that grants alienage jurisdiction." After surveying the political status of British territory such as the British Virgin Islands, as well as the constitutional history and laws of alienage jurisdiction, the Court declares that a British Virgin Islands company may be considered a citizen or subject of a sovereign state, the United States. Kingdom. The fact that the inhabitants of the British Virgin Islands are not citizens or subjects of the British under British national law, the Court held, does not exclude that they are citizens or subjects of foreign countries for the purpose of alienating jurisdiction laws. The court also observed that his decision was consistent with the views of the British government, the British Virgin Islands and the United States.
See also
- HIH Casualty and General Insurance Ltd v Chase Manhattan Bank
References
Source of the article : Wikipedia
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