Basis of Person Jurisdiction

Question 1

There is GENERAL jurisdiction (aka PJ in NY on any claim whatsoever no matter where it arose) when . . .

(Give details!)

Answer 1

1- Presence in NY @ time of service
- mere transient presence of corp officer DOES NOT qualify as presence by corporate D

2- Doing Business in NY:

• domestic corp & licensed foreign corp always
• unlicensed foreign corp doing business test = P must show that at the time the action is commenced, the corporation’s employees or agents are in NY engaging in commercial activity for the corporation on a regular, systematic, and ongoing basis.
• mere sales of a corporations products in NY DOES NOT constitute doing business in NY
• mere advertising/solicitation by a corp in NY DOES NOT constitute doing business in NY
• mere transient presence of a corp officer DOES NOT qualify as doing business
• NOTE: Satisfaction of the doing business standard is usually only necessary if the CoA arose outside NY. If it arose w/in the state, long-arm jurisdiction will probably be available and π won’t need to show that the foreign corp is doing business on a continuous and systematic basis within NY
• NOTE: can be used to get jurisdiction over individuals and partnerships as well as corporations
• can be served anywhere in U.S.

3- domicile in NY A time the action is commenced
- can be served anywhere in the U.S.

Question 2

There is SPECIFIC JURISDICTION (claim must be specific to Ds NY activity or w/in terms of K) when . . .

Answer 2

1- Long-Arm Jurisdiction
2- Non-Resident Motorist Statute
3- Consent

Question 3

SPECIFIC JURISDICTION: Non-Resident Motorist Statute

Answer 3

• The so-called “non-resident motorist statute” confers personal jurisdiction over an accident claim arising from a nondomiciliary motorist’s ownership or use of an auto on a NY roadway
• Service of process: π serves process on Δ by personally serving one copy on the NY Secretary of State PLUS mailing second copy to Δ by certified mail to Δ’s out-of-state-residence
• Applies to nondomiciliary vehicle owner who gave permission to drive in NY. An agency or business relationship between the owner and driver is not required.

Question 4

SPECIFIC JURISDICTION: Consent

Answer 4

Parties to a contract may consent in advance to personal jurisdiction in NY in a “forum selection clause” (such as “any dispute relating to the contract shall be resolved in NY courts”). Such clause is generally enforceable in absence of fraud, overreaching or unreasonableness

Question 5

SPECIFIC JURISDICTION: NY’s Long-Arm Jurisdiction

Answer 5

The facts of Ps case MUST arise out of any one of 5 categories of NY-related activity:

1- Ps claim arises from TRANSACTION OF BUSINESS BY THE D IN NY

2- Ps claim arises from A CONTRACT TRANSACTED ELSEWHERE BY WHICH THE D AGREED TO SUPPLY GOODS OR SERVICES IN NY [does not include the payment of a debt in NY]

3- Ps claim arises from D’s TORTIOUS ACT IN NY (except for defamation)

4- Ps claim arises from Ds TORTIOUS CONDUCT OUTSIDE NY WHICH CAUSES INJURY IN NY PLUSSSSSSS AN ADDITIONAL LINK BTW D & NY (except defamation)

Question 6

LONG-ARM:

Transaction of Business by the D in NY

Answer 6

• dif from “doing business” –> here a single commercial event in NY must give rise to the CoA sued upon
• sufficient that D actually negotiates in NY provided that the claim arises from those negotiations
• In somecases,Δ’s phone, electronic & mail transmissions from out of state, if substantial in # and relating to the performance of a significant K, can rise to the level of transaction of business in NY (“projecting oneself into NY”). BUT a single telephone call to NY by an out-of-state buyer does not qualify as a sufficient transaction in NY by the buyer.

Question 7

LONG-ARM:

A Contract Transacted Anywhere by Which D Agreed to Supply Goods/Services in NY

Answer 7

• The contract for goods or services in NY must be economically significant, such as an agreement by Δ to ship a sizeable quantity of merchandise to NY or to perform accounting, legal or entertainment services in NY
• a promise to pay money in NY does not qualify as contracting to supply goods or services in NY

Question 8

LONG-ARM:

Tortious Act in NY

Answer 8

• driving negligently on a NY roadway, making fraudulent statements during a sales negotiation in NY, converting goods while in NY, assaulting P in NY
• DOES NOT INCLUDE DEFAMATION

Question 9

LONG-ARM:

Tortious Conduct Outside NY Causing Injury in NY PLUSSSSS Additional Link btw D & NY

what are the additional links?

Answer 9

DOES NOT INCLUDE DEFAMATION

1- D regularly solicits business or engages in any other persistent course of conduct in NY; or

2- D derives substantial revenue from goods used or consumed, or services rendered, in NY; or

3- D expects or should reasonably expect the act to have consequences in NY ANDDD D derives substantial revenue from interstate or international commerce that PURPOSEFULLY includes NY

NOTE: purposeful availment required by DP [Scotus in WW Volkswagen]- in addition to foreseeability, D must also reasonably foresee the possibility that his out of state actions could lead him to be haled into a NY court as a result of his purposeful availment of the privileges and protections of NY

NOTE: For a commercial tort, e.g., fraud, conversion, theft of trade secrets, NY is the situs of injury only if π suffers direct financial effects in NY, e.g., loss of NY customers or NY sales. If π’s sales are lost in some other state, there is no
injury in NY even if π is a NY corporation

NOTE: physician’s medical services, even when provided by a well-known specialist who attracts many out-of-state patients, are “inherently local in nature” and don’t count as being engaged in interstate commerce

Question 10

General Points a/b Long-Arm Statute

Answer 10

• covers all types of Ds
• The acts giving rise to jurisdiction can be performed by Δ herself or by her agent or employee. Also, the agent’s acts in NY will subject the agent herself to jurisdiction
• Even if Δ dies, decedent’s estate representative can be served outside NY
• Serving process: π must use the same methods of service on Δ outside NY as would be used inside NY

Question 11

EXAM ESSAY TIP RE: ESSAY ON PERSONAL JURISDICTION

Answer 11

1- discuss whether P can establish jurisdiction under any non-long-arm categories
2- discuss whether facts of Ps case fall w/in one or more of the long-arm categories
3- discuss whether the particular assertion of jurisdiction would satisfy constitutional due process (must arise out of conduct of D that is so purposefully directed toward NY that D should reasonably anticipate being sued in NY)