First American Corp. v. Price Waterhouse L.L.P.

Price Waterhouse United Kingdom Firm (PW-UK) (defendant) was the worldwide auditor for the Bank of Commerce and Credit International (BCCI). PW-UK was a partnership based in the United Kingdom. PW-UK performed its BCCI-related work with the assistance of Price Waterhouse partnerships around the world, including Price Waterhouse’s partnership in the United States (PW-US). Upon BCCI’s collapse, First American Corporation and First American Bankshares, Inc. (collectively, First American) (collectively, plaintiff) filed suit in federal court in the District of Columbia. In aid of its suit, First American sought discovery from PW-UK by serving a subpoena seeking the production of documents on PW-US’s New York office and on Clive D. J. Newton, a PW-UK partner temporarily working at the PW-US New York office. First American served the Newton subpoenas at Newton’s office and at his Connecticut home. After PW-UK refused to comply with the subpoenas, First American filed a motion in federal court in New York to compel PW-UK to produce the requested documents. The district court ordered PW-UK to obey the subpoena, ruling that PW-UK engaged in business in New York due to its coordinated work with PW-US and thus was subject to personal jurisdiction in New York. However, the district court concluded that the subpoena that First American served on Newton in Connecticut did not confer jurisdiction in New York and that serving Newton with a subpoena in New York also was improper. On reconsideration, the district court reaffirmed its rulings. PW-UK appealed.