On October 15, 2026, the First Department issued a decision in BFAM Asian Opportunities Master Fund, LP v. Glory Health Indus. Ltd., 2026 NY Slip Op. 05997, holding that defendants could not avoid liability based on a defense that their performance was prohibited by foreign law, explaining:
In opposing plaintiffs’ motion, defendants asserted that Glory Housing’s performance was excused because of an intervening Chinese law making it impossible for the company to make payments due under the indenture and notes. Supreme Court properly rejected this defense. As stated in its terms, the indenture was expressly governed by New York law, and it did not contain a force majeure clause addressing the risk that Chinese laws would change so as to conflict with New York law. Thus, defendants failed to raise an issue of fact as to whether they bore the risk of conflicts between New York and Chinese law.
(Internal citations omitted).