Monday, December 14, 2015

Jurisdiction based on a tort committed outside the State causing injury inside the State.

Practice point:  The Appellate Division affirmed dismissal for lack of personal jurisdiction in this action stemming from the sale and deliver of steel from a New York company to two New Jersey corporations.  It determined that the motion court properly rejected plaintiff's assertion of jurisdiction under CPLR 302(a)(3)(ii), for an alleged tort committed without the State causing injury within the State. As to the tort committed without the State, plaintiff points to the alleged fraudulent conveyance of plaintiff's assets to defendant. This fails, however, because the situs of the injury is the location of the original event which caused the injury, not the location where the resulting damages are subsequently felt.  Therefore, the alleged tortious act did not cause]injury within New York, but in New Jersey.

Student note:  The Appellate Division determined that plaintiff has also offered nothing but conclusory allegations that any defendant derives substantial revenue from interstate or international commerce, as required for jurisdiction under CPLR 302(a)(3)(ii).

Case:  Cotia (USA) Ltd. v Lynn Steel Corp., NY Slip Op 09169 (1st Dept. 2015)

Here is the decision.

Tomorrow's issue:  Limiting the scope of discovery.