Globalization is not new. The ancient Phoenicians were great sea-faring merchants. Beirut, Byzantium, and Cardiff were major trading cities in the Mediterranean in the pre-classical and classical eras. An Eighteenth Century Scottish bachelor - who lived his entire life in his mother’s home – recognized this when writing An Inquiry into the Nature and Causes of the Wealth of Nations (1776). The author was Adam Smith.
A body of customs and rules, called maritime law, arose from this international commerce. These rules came to support international transportation, brokerage, financial services, and banking thousands of years ago. Though travel, commerce and information move more quickly now, and the volume of such movement is greatly increasing now, legal problems involving international business are not new.
Time, and timing are critical to international business, just as they are to domestic matters. Thus, a complex lawsuit filed in U.S. District Court in Omaha NE presents claims of Domina Law pc’s Northern Cyprus bank client for damages flowing from an Omaha escrow agent. The dimensions of the problem are substantial. The suit contends five hundred Kuwaiti construction workers lost their jobs temporarily in December 2004 because financing was disrupted by the Omaha agent.
Domina Law pc has been called upon to provide services for a bank in Northern Cyprus. Northern Cyprus has its own government but is not recognized as a country by the United Nations. Northern Cyprus banks cannot be approved for some finance matters needed for international business since they are not located in a “sovereign” nation.
Domina Law pc ’s client bank was engaged to arrange a documentary letter of credit through a U.S. bank for a Turkish subcontractor’s multi-million dollar purchase of supplies for a major Kuwaiti school construction project. An Omaha NE escrow agent was selected to hold escrowed funds until the letter of credit was approved. The suit filed in federal court in Omaha contends the escrow agent released escrowed funds improperly. This action in the America’s heartland impacted hundreds of people and millions of dollars, and at least two foreign governments, on the other side of the world.
Domina Law pc brought suit in federal court to repair the damage. The case is important to maintain international trust in the U.S. regulatory, financial and legal system -- an especially sensitive task in the post 9/11 world.
Domina Law pc is honored to have been chosen to help with a case involving this issue of international trust.
January 25, 2005
Michael C. Stumo
Domina Law Group pc llo is a trial practice law firm. Its lawyers try cases in courts across the United States. The firm handles sensitive, complex matters and often has cases referred to it by other lawyers.