August 21, 2013

The first-in-time rule.

Practice point:  New York courts generally follow the rule, which provides that the court which has first taken jurisdiction is the one in which the matter should be determined, and it is a violation of the rules of comity to interfere.

Student note:  When considering whether to dismiss a later-filed action, courts will determine whether there is a sufficient identity of parties. In fact, substantial, not complete, identity of parties is all that is required to invoke CPLR 3211(a)(4). Where, as here, a plaintiff seeks the same damages for the same alleged injuries relating to the same transaction from close corporate affiliates, a court may properly make a finding that parties have substantially similar identities sufficient to invoke the rule.

Case:  Syncora Guar. Inc. v. J.P. Morgan Sec., LLC, NY Slip Op 05602 (1st Dept. 2013).

Here is the decision.

Tomorrow's issue: Conveyance of a property by deed.