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The End Of Winter Storm: The Second Circuit Decides That "Beneficiary" Wire Transfers Are Not Attachable Property Under Rule B And That It Is "Probable" That "Originator" Wire Transfers Are Likewise Not Attachable.

Publication: Mondaq Business Briefing
Publication Date: 26-OCT-09 		Format: Online
Delivery: Immediate Online Access
Full Article Title: The End Of Winter Storm: The Second Circuit Decides That "Beneficiary" Wire Transfers Are Not Attachable Property Under Rule B And That It Is "Probable" That "Originator" Wire Transfers Are Likewise Not Attachable.(Shipping Corporation of India Ltd. v. Jaldhi Overseas Pte. Ltd. )

Article Excerpt
The Second Circuit Decides That "Beneficiary" Wire Transfers Are Not Attachable Property Under Rule B And That It Is "Probable" That "Originator" Wire Transfers Are Likewise Not Attachable1

The Second Circuit's decision today, October 16, 2009, in The Shipping Corporation of India Ltd. v. Jaldhi Overseas Pte. Ltd. overruled the Court's 2002 Winter Storm Shipping v. TPL decision on the attachability of electronic fund transfers ("EFTs") "with the consent of all the judges of the Court in active service." The Court ruled that Winter Storm was "erroneously decided and therefore should no longer be binding precedent in our Circuit."

The issue on appeal was specifically the attachability of EFTs being sent to a Rule B defendant (i.e. "beneficiary" EFTs)--which the District Court had ruled were not attachable property. That question had been left open by the Second Circuit's decision in Consub Delaware LLC v. Schahin Engenheria Limitada (2008), which had upheld the attachability of "originator" EFTs. The Court stated, in a footnote, that in "overturning Winter...

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