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PLAINTIFF DID NOT ALLEGE SUFFICIENT CONTACTS WITH NEW YORK TO SUPPORT LONG-ARM JURISDICTION OVER THE DEFENDANT IN ISRAEL; THE EVIDENCE DID NOT JUSTIFY JURISDICTIONAL DISCOVERY (FIRST DEPT).

​The First Department, reversing Supreme Court, determined plaintiff did not demonstrate a basis for long-arm jurisdiction over the defendant in Israel, and did not make a “sufficient start” to justify jurisdictional discovery:

Plaintiff, a Rhode Island corporation with its principal place of business in Nevada, commenced this action against defendant, a resident of Israel, alleging that defendant breached his fiduciary duty to plaintiff by failing to perform his marketing and management duties while serving as plaintiff’s director. …

… [D]efendant submitted evidence to show that he had no contacts with New York, had not been in New York since mid-2018, and that the specific transactions alleged in the complaint involved business contacts in Texas and Rhode Island, not New York. In opposition, plaintiff did not dispute defendant’s showing, but submitted evidence that it leased an office and opened a bank account in New York with defendant’s approval and assistance, and an affidavit of its chief executive officer who made vague and unsubstantiated assertions that defendant did business on plaintiff’s behalf in New York at unspecified times with unnamed employees and customers, which was insufficient to establish long-arm jurisdiction … . Because plaintiff failed to make a “sufficient start, via tangible evidence,” of showing that defendant transacted any business in New York having any substantial relationship to the claim alleged in the complaint, jurisdictional discovery was not warranted, and the complaint should have been dismissed … . Noris Med., Inc. v Siev, 2023 NY Slip Op 01482, First Dept 3-21-23

Practice Point: The alleged connections with New York did not state a basis for long-arm jurisdiction over the defendant in Israel.

Practice Point: The evidence did not make a “sufficient start” such that jurisdictional discovery was warranted.

 

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