Long Arm Jurisdiction Has Its Limits 

 

An important consideration for any defendant when a case is instituted, is whether the plaintiff has brought suit against the defendant in a proper forum which has jurisdiction over it.  Such was the issue resolved in favor of KBR's clients in a recent Nassau Supreme Court case.

 

Plaintiff, the former Dean of the School of Business, Executive V.P. for External Relations and a tenured professor at a university brought suit against his former employer and the president of that university alleging breach of contract for wrongful termination and failure to reimburse travel expenses.  Suit was filed in New York Supreme Court, Nassau County and upon receipt of the suit, KBR's attorneys moved to dismiss alleging that the Courts of New York do not have jurisdiction over the university or the President, as both are Michigan domiciliaries.

 

Plaintiff argued long arm jurisdiction was available under New York CPLR 302(a)(1) which authorizes the court to exercise jurisdiction over nondomiciliaries when a tort or contract claim arises from a defendant's business transaction within the State.  To support its position, plaintiff alleged the defendants transacted business in New York through a classified advertisement in a national-international publication in order to recruit employees for the school in Michigan, that throughout his two year employment plaintiff was a New York resident and all correspondence was through his New York address and finally that his salary and expense payments were made to a bank in New York. 

 

The Court dismissed plaintiff's action, agreeing with defendants that none of the causes of action cited by plaintiff arise out of the three purported contacts with the State of New York.  The Court further stated that "based on the totality of the circumstances, this Court finds that the defendants have not purposefully availed themselves of the privileges of conducting activities within New York, such that they would be afforded the benefits and protections of its laws".

 

This matter was litigated by Joan M. Gilbride and Tyra R. Saechao for the Employment Practices Litigation group and the motion was prepared by Tyra R. Saechao. 

Monahan, et al., N.Y. Sup. Nassau, Index. 2159/09, March 16, 2010.