A Singaporean corporation sued a Chinese corporation in New York state court based on the choice of forum and choice of law clauses in their contract. The defendant Chinese corporation challenged the New York General Obligation Law s.5-1401, to the extent that the law compels a party with no connection to New York to be haled into New York courts. In doing so, according to the defendant, the law violates the Commerce Clause and the Due Process Clause of the U.S. Constitution.
The court rejected the argument.
Here was what I would call a "necessary lawsuit"--a Hail Mary attempt that will fail 99 times out of 100, but a necessary one just to dispel any lingering doubt about the constitutionality of a legal device that is so commonly used without thought. Hey, the law school case book must be filled with something, right?