Wednesday, September 2, 2015

Dismissal of a claim based on comity.

Practice point:  The Appellate Division affirmed the Supreme Court's determination that the adjudication of defendant's claims for compensation under employment and consulting agreements with his former employer in a winding-up proceeding that was litigated in the British Overseas Territory of Bermuda precluded the instant action against the employer, among others, to recover damages for breach of contract and fraud. The plaintiff appeared in the Bermuda proceeding by submitting his claims to the Bermuda court, and made no showing of fraud or that a public policy of this State would be violated by recognizing the Bermuda court's rejection of his claims.

Student note:  New York recognizes judgments rendered in a foreign country under the doctrine of comity, which is the equivalent of full faith and credit given by courts to judgments of other states.  According to the Appellate Division, absent some showing of fraud in the procurement of the foreign country judgment or that recognition of the judgment would do violence to a strong public policy of New York State, a party who properly appeared in the action is precluded from attacking the validity of the foreign country judgment in a collateral proceeding commenced in a New York court.

Case:  Basile v. CAI Master Allocation Fund, Ltd., NY Slip Op 06650 (2d Dept. 2015)

Here is the decision.

Tomorrow's issue:  Personal liability for corporate violations of the Labor Law.