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Court Determines Jurisdiction in Breach of Contract Case

This breach of contract action is filed by a financial leasing company in New York against a financial leasing company from India and its president. The trust company, however, moved to dismiss the complaint for lack of personal jurisdiction.

A New York Injury Lawyer said before this action occurred, the financial leasing company in New York entered into discussions of a potential business relationship with the financial leasing company from India in connection with the use of New York financial leasing company’s technology for India financial leasing company’s online microfinance service. As part of the project, financial leasing company in New York sent its consultants to India to perform the study of the parties’ needs for the project. According to the financial leasing company in New York, the estimated cost of the project was approximately $25,000, 50% of which was to be paid in advance by the financial leasing company from India and the remaining 50% at the completion of the project. Additionally, the financial leasing company from India was to pay the expenses associated with the consultant’s travel and lodging.

The president confirmed in response to the financial leasing company in New York’s email of outlining the terms of the project.

After the completion of the said project by financial leasing company in New York, the financial leasing company from India paid only the cost of the consultant’s expenses but failed to pay the sum of $25,000. Financial leasing company in New York’s demand for payment, but the financial leasing company from India refused to pay. After receiving the notice of demand for payment, the president started using her connections and influence in business circles, pressuring some institutions in India, with which financial leasing company in New York had a contractual relationship or was in the process of negotiating business agreements. In this way, the financial leasing company in New York is forced to discontinue the law suit against the financial leasing company from India or risk losing its contractual business relationships with the other institutions. As a result of such conduct by the president, the financial leasing company in New York claimed that it sustained personal injury. The instant action for a permanent injunction, breach of contract, recovery of money and tortious interference arises.
In the motion of the financial leasing company from India argue that the financial leasing company in New York cannot demonstrate that the company from India is subject to the general personal jurisdiction of the court or specific jurisdiction under the long-arm statute. Additionally, the financial leasing company from India contends that an assertion of personal jurisdiction would violate the law of the constitution. The company from India also asserts that they are not doing business in New York because they don’t have an office and is not registered to conduct business in New York. The company from India contends their contacts with New York do not rise to the level of permanent and continuous because the few contacts they had with New York were through emails or by telephone. The financial leasing company from India further asserts that the company from New York contacted them proposing the discussion of the potential business relationship. Subsequently, the parties discussed the terms of a possible partnership in developing lending services. Then, the financial leasing company in New York sent an email listing the services they can provide and a draft of the memorandum of understanding. And, the president of the company stated that it is for further discussion of the terms, asserting that no agreement was reached as to the terms or conditions of the project. However, a Nassau County Personal Injury Lawyer said financial leasing company in New York sent an invoice to the company in India for $2,897 for their consultant’s travel to India which includes lodging expenses and worker’s compensation, which the company in India paid but India refused to pay the remaining invoice of $25,000 from the New York Company.

Further, the president of the company in India does not establish that she had any contacts with New York. With her affidavit she stated that she does not reside in and does not regularly visit New York, she does not own property and has no bank accounts or a mailing address in New York. The president was served with the papers pertaining to the present proceedings in India and stated that requiring her to defend herself in New York would be an unfair burden on her.

An NYC Personal Injury Lawyer said the financial leasing company from India argues that the only related allegation in the complaint regarding their New York contacts is that the leasing company from India agreed to the terms of the agreement through the email and such allegation is insufficient to establish personal jurisdiction over the opponent. It does not establish that the financial leasing company from India transacted business in New York and even if they did, there is no significant relationship between such transaction and financial leasing company in New York’s claim. Finally, the financial leasing company from India contend that, if the complaint is dismissed, financial leasing company in New York will still have a convenient and effective relief because according to their website, there company has an office with an address in India and Indian courts have control over the parties.

The financial leasing company in New York opposes the dismissal of the complaint, arguing that personal jurisdiction over the opponent exists even though they do not have physical presence in New York and the parties discussed the terms of the project by means of email and telephone. To begin with, financial leasing company in New York contends that the motion is defective because it is not supported either by an attorney affirmation or by affidavit.

The financial leasing company in New York contends that the court can exercise personal jurisdiction over their opponent’s company because they have minimum contacts with New York. The financial leasing company in India availed themselves of the benefits of the forum by using the company in New York’s consulting services, knowledge and the unique automated profile-matching algorithms program. In support of its contention, the financial leasing company in New York points out that the need analysis report was prepared in New York. In addition, the financial leasing company in New York also submits a copy of the article of the journal co-authored by the president of the company in India, which refers to the project of development of microfinance services in India. The financial leasing company in New York also claimed that the financial leasing company in India holds recruiting information sessions and speaking engagements at one the New York University of Business. Additionally, the president held a presentation at one of the business school about company in India’s efforts in bringing financial services to rural population in India. As well the company’s corporate and investor’s relations manager came to New York to speak at the microfinance investment conference.

After the arguments, the court ordered that the motion by the financial leasing company from India and its president to dismiss the complaint of the New York’s company’s allegation of lack of personal jurisdiction is granted. It further ordered that the financial leasing company from India and its president shall serve a copy of the order with notice of entry to the financial leasing company in New York.

The most valuable asset of businesses is good credibility. It is very important to maintain a good name that is away from intrigues and disgrace. A NYC Personal Injury Lawyer is capable enough to handle cases of indignity and conspiracy against any company. When you are in need of legal determination with regard to your compensation, or have been injured in a car accident, medical malpractice case or are a victim of negligence, our NYC Workers’ Compensation Lawyers at Stephen Bilkis & Associates are the excellent team to offer you more than enough legal knowledge.

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