Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

NY Court of Appeals Rejects Claim of Internet Jurisdiction

By Shari Claire Lewis
December 31, 2014

Long-arm jurisdiction over non-domiciliaries is an issue that continues to bedevil practitioners and litigants in the Internet age. In New York, CPLR 302(a)(1) authorizes jurisdiction over a non-domiciliary that “transacts any business” within the state. CPLR 302(a)(1) provides in relevant part:

(a) Acts which are the basis of jurisdiction. As to a cause of action arising from any of the acts enumerated in this section, a court may exercise personal jurisdiction over any non-domiciliary, ' , who in person or through an agent:

1. transacts any business within the state or contracts anywhere to supply goods or services in the state'.

The test, however, can be difficult to apply when a commercial entity uses technology to project itself into New York to conduct business transactions and otherwise lacks an in-state physical presence.

Consider that it was only a few years ago when the New York Court of Appeals ruled that '302(a)(1) conferred long-arm jurisdiction over an out-of-state institutional investor who called the plaintiff, a New York securities firm, to make a trade, and the suit arose from that transaction. See, Deutsche Bank Sec. v. Montana Bd. of Invs., 7 N.Y.3d 65 (2006). Only one year later, the court decided that California defendants had “transacted business” where they had formed an attorney-client relationship with the plaintiff attorney in New York through numerous telephone calls, faxes, mail contacts and e-mails. See, Fischbarg v. Doucet, 9 N.Y.3d 375 (2007).

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Removing Restrictive Covenants In New York Image

In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?

Fresh Filings Image

Notable recent court filings in entertainment law.