New Hampshire Bank Commissioner v. Sweeney

The respondents in this case were fourteen non-residents who were named in a petition filed by the New Hampshire Bank Commissioner, as liquidator for Noble Trust Company (Noble) and Aegean Scotia Holdings, LLC (Aegean Scotia). They appealed a superior court order denying their motions to dismiss for lack of personal jurisdiction. Each respondent had signed an individual account application with Noble Trust Company, which had a New Hampshire address. Respondents' accounts were funded with either a check deposit (mailed to New Hampshire) or wired electronically. As respondents tried to check on their accounts, withdraw from or close their accounts, they encountered problems. Respondents' petition alleged Noble was involved in a Ponzi scheme, in which the Bank was using their money to cover losses of other investors. They sought to set aside transfers of money from Noble to the respondents, impose constructive trusts, and recover for unjust enrichment and conversion. The respondents moved to dismiss the suit for lack of personal jurisdiction. The trial court denied the motion, finding that the court could exercise personal jurisdiction over the respondents on the basis that: (1) respondents Carlson and the Schweitzers filed proofs of claim in the liquidation proceeding against Noble in New Hampshire; and (2) the remaining respondents had sufficient minimum contacts with New Hampshire. The Supreme Court found no reversible error with the superior court's decision, and remanded the case for further proceedings. View "New Hampshire Bank Commissioner v. Sweeney" on Justia Law