Texas litigation team secures win for Oakwood Bank in Louisiana Court of Appeal
Vereinigte Staaten | Press release - Business | März 2024
Norton Rose Fulbright obtained a “reverse and render” decision from the Louisiana Court of Appeal, Third Circuit for Texas-based Oakwood Bank.
Oakwood Bank was sued in Louisiana state court for alleged violations of the Louisiana Racketeering Act. Plaintiffs contended that Oakwood Bank, along with its banking customer The Law Firm of McClenny Mosely & Associates and others, engaged in a wide-ranging racketeering conspiracy involving theft and money laundering, to defraud thousands of Louisiana homeowners pursuing recovery for hurricane property damage claims. Norton Rose Fulbright’s challenge to personal jurisdiction over Oakwood in Louisiana was denied in state court following jurisdictional discovery, hearings and extensive briefing.
Norton Rose Fulbright filed a supervisory writ to the Louisiana Court of Appeal, Third Circuit, seeking reversal of the court’s denial of its challenge to personal jurisdiction. On Thursday, February 29, 2024, the Louisiana Court of Appeal, Third Circuit issued a unanimous opinion reversing and rendering in Oakwood Bank’s favor, finding no personal jurisdiction and awarding costs against plaintiffs.
This case was an issue of first impression under Louisiana law, determining whether personal jurisdiction exists over an out-of-state bank in Louisiana based on the transactions of its customer in Louisiana which the bank simply facilitated. The ruling is an important decision for out-of-state banks being brought into court in another state based on the transactions and conduct of their customers in that state.
The Norton Rose Fulbright team was led by Jason K. Fagelman and included Kristina Williams and Madison White (Dallas).