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There was no long arm jurisdictionDecember 19, 2013

J.C. Healing Touch Rehab, P.C. v Access Gen. Ins. Co., 2013 NY Slip Op 52086(U)(App Term 2d Dept. 2013)

“The litigation specialist alleged, among other things, that defendant maintained offices in Atlanta, Georgia and that defendant is not authorized to conduct business in New York. He further stated that defendant does not issue or deliver contracts of insurance to New York State residents or corporations authorized to do business in New York and has never had any employees either located in or working to solicit business in New York.”

“Here, defendant made a prima facie showing that personal jurisdiction had not been obtained [*2]over it based on any of the acts set forth in the Civil Court’s long-arm jurisdiction statute (CCA 404 [a]). In order for plaintiff to prove that the Civil Court had obtained personal jurisdiction over defendant, a corporation which is not a resident of the City of New York, plaintiff was required to establish that defendant either transacted business, contracted to supply goods or services, committed a tortious act, or used or possessed any real property within the City of New York”

“The affirmation of plaintiff’s attorney offered in opposition to defendant’s motion failed to demonstrate that he possessed personal knowledge of the facts to show that some basis for jurisdiction existed.”

It is always strange when you conceptualize yourself, driving through a state where your insurance coverage has no force or effect.  It is a scary proposition

2 Responses

  1. Rookies says:

    Horrendous decision, the Court ignores the law of the state where the notary has to be taken, denies jurisdictional discovery for no apparent and logical reason, and tell the provider to treated the patient, good luck suckers.

  2. JT says:

    I am not concerned about the notary issue – most states follow the federal model and allow affirmations to be made by anyone as long as they are made under penalty of perjury. 18 USC 1746.

    The problem here is that people are being sold insurance policies that make it difficult to compel carriers to offer bargained for coverage (through the deemer statute and many times the deemer clause in the insurance contract) through requiring the provider to commence a lawsuit in the state that the carrier transacts business or is located.

    My solution is to amend VTL 253 to allow NY courts and AAA to acquire jurisdiction in these situations, similar to how jurisdiction is acquired through non-resident drivers involved in motor vehicle accidents in this State. I stand moot on choice of law issues.

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