Practice point: The court properly exercised jurisdiction over defendants-appellants, pursuant to CPLR 302(a)(1). Proof of one transaction in New York is sufficient to invoke jurisdiction, even though the defendant never enters New York, so long as the defendant's activities here were purposeful and there is a substantial relationship between the transaction and the claim asserted.
Student note: Contrary to defendants-appellants' contention, there was no need to establish a formal agency relationship between them and the other defendants, since it was shown that the other defendants acted purposely in New York for their benefit and with their knowledge and consent, and that defendants-appellants exercised some control over the other defendants in the matter. Defendant Kagalovsky's negotiation of the partnership agreement in New York and defendant Iota LP's subsequent actions in New York, including its commencement of an action in federal court in New York based on the partnership agreement, are sufficient to show that defendants-appellants, through an agent, transacted business within the state (CPLR 302[a][1]).
Case: New Media Holding Co. LLC v. Kagalovsky, NY Slip Op 05597 (1st Dept. 2012).
Tomorrow’s issue:
Serving a late notice of claim.
