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NEW YORK IN TER NA TION AL LAW REVIEW Summer 2007 Vol. 20, No. 2 Articles Entrenched Emergencies and the “War on Terror”: Time to Reform the Derogation Procedure in International Law? Edel Hughes .........................................................................................................1 Laws of Unintended Consequences: Terrorist Financing Restrictions and Transitions to Democracy Peter Margulies ..................................................................................................65 Japanese Only: Xenophobic Exclusion in Japan’s Private Sphere Canon Pence.....................................................................................................101 Recent Decisions Sung Hwan Co., Ltd. v. Rite Aid Corp. ...........................................................161 In an action to enforce a money judgment obtained by a foreign company against a domestic company, the Court of Appeals of New York held that the fact that New York does not recognize an economic loss tort did not foreclose the use of Rule 302(a)(3) as a basis by a foreign court to exercise personal jurisdiction over the domestic company. Schonfeld v. Bush ............................................................................................167 In an action governed by Hong Kong law, the court denied the defendant’s motion for summary judgment, holding that Hong Kong law required a trier of facts to determine whether a partnership existed, that Hong Kong law recognized a duty of loyalty, and that Hong Kong law, although not identical to New York law, did have requirements sufficiently analogous to the implied covenant of good faith and fair dealing for a claim to proceed on that basis. In re Rivastigmine Patent Litigation .............................................................. 173 In the absence of an express absolute evidentiary privilege comparable to the U.S. attorney-client priv- ilege in Swiss law, such a privilege cannot be extended to communications between a company and its Swiss patent agents and in-house counsel. Karaha Bodas Co., L.L.C. v. Perusahaan Pertambangan Minyak Dan Gas Bumi Negara .......................................................................183 Motion granted for an injunction restraining the adverse party from filing foreign proceedings where it filed parallel proceedings in bad faith and to obstruct justice in the same dispute in foreign courts after final judgments had been entered by courts in the United States. DiChiara v. Ample Faith Investments Ltd. ......................................................195 Allegations including a broad contractual choice of New York law and jurisdic tion were sufficient to survive a motion to dismiss for lack of personal jurisdic tion over the defendants, based on forum non conveniens, international comity, and failure to join an indispensable party. Commission v. Spain .......................................................................................203 Spain failed to fulfill its obligations under Articles 1 to 3 of Council Directive 64/221/EEC on the coordination of special measures concerning the movement and residence of foreign nationals by refusing entry without investigation of the alien spouses of Member State nationals. NEW YORK STATE BAR ASSOCIATION INTERNATIONAL LAW & PRACTICE SECTION Published with the assistance of St. John’s University School of Law NEW YORK INTERNATIONAL LAW REVIEW Summer 2007 Vol. 20, No. 2 NEW YORK STATE BAR ASSOCIATION INTERNATIONAL LAW & PRACTICE SECTION © 2007 New York State Bar Association ISSN 1050-9453 (print) ISSN 1933-849X (online) INTERNATIONAL LAW & PRACTICE SECTION OFFICERS—2007 Chair ..............................................................Oliver J. Armas, Thacher Proffitt & Wood LLP Two World Financial Center, New York, NY 10281 Chair Elect......................................................Marco A. Blanco, Curtis, Mallet-Prevost, Colt & Mosle LLP 101 Park Avenue, New York, NY 10178 Vice-Chairs First Vice Chair ..............................................Calvin A. Hamilton, Monereo, Meyer & Marinel-lo Bárbara De Braganza 11, 2° , Madrid 28004, Spain Second Vice Chair ..........................................John Hanna, Whiteman Osterman & Hanna LLP One Commerce Plaza, Albany NY 12260 Mark H. Alcott, Paul, Weiss, Rifind, Wharton Gerald J. Ferguson, Baker & Hostetler LLP & Garrison, LLP 666 Fifth Avenue, New York, NY 10103 1285 Avenue of the Americas, New York, NY 10019 Joyce M. Hansen, Federal Reserve Bank of NY Jonathan P. Armstrong, Eversheds, LLP 33 Liberty Street, 7th Floor, New York, NY 10045 85 Queen Victoria Street, London EC4V 4JL UK Allen E. Kaye, Law Offices of Allen E. Kaye, PC John E. Blyth 111 Broadway, Suite 1304, New York, NY 10006 141 Sully’s Trail, Suite 12, Pittsford, NY 14534 Steven C. Krane, Proskauer Rose LLP Christine A. Bonaguide, Hodgson Russ LLP 1585 Broadway, New York, NY 10036 One M&T Plaza, Suite 2000, Buffalo, NY 14203 A. Thomas Levin, Meyer Suozzi English & Klein, PC Prof. Sydney M. Cone III, Cleary Gottlieb Stein 990 Stewart Ave., Suite 300, Garden City, NY 11530 & Hamilton Eduardo Ramos-Gomez, Duane Morris LLP Liberty Plaza, New York, NY 10006 1540 Broadway, New York, NY 10036 David W. Detjen, Alston & Bird Lorraine Power Tharp, Whiteman Osterman & Hanna LLP 90 Park Avenue, 14th Floor, New York, NY 10016 One Commerce Plaza, Albany, NY 12260 Executive Vice-Chair......................................Michael W. Galligan, Phillips Nizer LLP 666 Fifth Avenue, New York, NY 10103 Secretary.........................................................Jennifer Karen King, Shamberg Marwell Davis & Hollis 55 Smith Avenue, Mt. Kisco, NY 10549 Treasu re r.........................................................Lawrence E. Shoenthal, Weiser LLP 135 West 50th Street, 12th Floor, New York, NY 10020 Immediate Past Chair ....................................John F. Zulack, Flemming Zulack Williamson & Zauderer LLP One Liberty Plaza, 35th Floor, New York, NY 10006 Delegates to the NYSBA James P. Duffy, III, Berg & Duffy, LLP House of Delegates ........................................33 South Service Road, Suite 109, Jericho, NY 11753 Paul M. Frank, Hodgson Russ LLP 1540 Broadway, 24th Floor, New York, NY 10036 Robert J. Leo, Meeks & Sheppard 330 Madison Avenue, 39th Floor, New York, NY 10017 NEW YORK INTERNATIONAL LAW REVIEW Advisory Board Chair .........................Ronald D. Greenberg, New York, New York David Buxbaum Frank Fine Sven Papp Guangzhou, China Brussels, Belgium Stockholm, Sweden Nishith M. Desai Larry D. Johnson Charles A. Patrizia Bombay, India New York, New York Washington, D.C. Siegfried H. Elsing Clifford Larsen Saud M.A. Shawwaf Dusseldorf, Germany Paris, France Riyadh, Saudi Arabia Christian Emmeluth Kenneth Cang Li Koji Takeuchi London, England New York, New York Tokyo, Japan Dr. Alfred S. Farha Monica Petraglia McCabe Samuel Xiangyu Zhang Zurich, Switzerland New York, New York Washington, D.C. NEW YORK INTERNATIONAL LAW REVIEW Editorial Board Editor-in-Chief..........Lester Nelson New York, NY Executive Editor .............................Alan J. Hartnick Article Editors (continued) ..............Myron J. Laub New York, NY Clifton, NJ Recent Decisions Marisa A. Marinelli Editor ..............................................Peter W. Schroth New York, NY Glastonbury, CT George K. Miller Article Editors ................................Charles Davidson New York, NY New York, NY Joseph J. Saltarelli Charles K. Fewell New York, NY New York, NY David Serko Richard L. Furman New York, NY New York, NY Shane H. Sutton Joseph S. Kaplan New York, NY New York, NY Jacob R. Wyatt Robert Kestelik Washington, D.C. Houston, TX Prof. Cynthia C. Lichtenstein Newton Center, MA Student Editorial Board St. John’s University School of Law Editor-in-Chief ..........Troy A. Kennedy Managing Editor .........Michelle Fransisco Associate Managing Editor ........Jonathan Lerner Executive Articles Editor ................Susan Lutinger Executive Notes & Associate Articles Editor..................Sui Jim Comments Editor .......................... Bena Varughese Associate Notes & Associate Articles Editor .................Theodora Vasilatos Comments Editor .......................... David Henry Executive Research Editor ..............Rachel Stern Associate Notes & Symposium Editor ..........................Melissa Whitman Comments Editor .......................... Emma Oh Staff Senior Staff 2006–2007 ExecutiveLouisa Notes Chan & Ashesh Patel Shirin Aboujawde Samantha Chung Meghan L. Plunkett Jennifer Apple Amanda D'Orazi Mary Kate Quinn Salim Azzam Nathaniel Eichler Elizabeth Rabinowitz Stefanie Beyer Arianna Gonzalez-Abreu Lauren Silver Michael Blit Jessica Healey Diana Strasburg Joshua Bornstein Eun Jo (EJ) Jason Strauss Valerie Ferrier Delano Ladd Rita Wang Lisa Fitzgerald Lenh Mong Matty Weir Lauren Gehrig Ify Onuora Danielle Young Halie Geller Aaron Palash Sunnyra Horn Misty Marris William Ng Joseph Russo Jennifer Thomas Wendy Wang Anne Zangos Faculty Advisor: Professor Charles Biblowit INTERNATIONAL LAW & PRACTICE SECTION COMMITTEES Advisory Daniel J. Rothstein Robert J. Leo Flemming Zulack Williamson & Zauderer LLP Meeks & Sheppard One Liberty Plaza, 35th Floor 330 Madison Avenue, 39th Floor New York, NY 10006 New York, NY 10017 [email protected] [email protected] Cross Border M&A and Joint Ventures John F. Zulack Valarie A. Hing Flemming Zulack Williamson & Zauderer LLP Curtis, Mallet-Prevost, Colt & Mosle One Liberty Plaza, 35th Floor 101 Park Ave New York, NY 10006