Marsin Medical International, Inc. v. Bauhinia Ltd.

948 F. Supp. 180
CourtDistrict Court, E.D. New York
DecidedNovember 15, 1996
DocketCV-95-4802
StatusPublished
Cited by4 cases

This text of 948 F. Supp. 180 (Marsin Medical International, Inc. v. Bauhinia Ltd.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marsin Medical International, Inc. v. Bauhinia Ltd., 948 F. Supp. 180 (E.D.N.Y. 1996).

Opinion

MEMORANDUM AND ORDER

GLASSER, District Judge:

Plaintiff Marsin Medical International, Inc. (“Marsin”) brought this diversity action against defendant Bauhinia Ltd. (“Bauhinia”) to recover for breach of contract and fiduciary duty. Bauhinia moves for dismissal under Federal Rule of Civil Procedure 12(b)(2) (“Rule 12(b)2”) for lack of personal jurisdiction, or in the alternative, under the doctrine of forum non conveniens, arguing that the Eastern District of New York is an inappropriate forum for this case. For the reasons that follow, the Court denies the defendant’s motion.

FACTS

For the purposes of this motion, the following facts are presumed true. Defendant Bauhinia, a Hong Kong corporation, locates products manufactured in the Far East for United States distributors. Ng Aff. ¶ 3. Bauhinia’s principal place of business is Hong Kong. It is not authorized to do business in New York, nor does it have offices, employees, inventory, bank accounts, telephone numbers or a mailing address in this state. Ng Aff. ¶¶ 4, 5. In 1990, plaintiff Marsin, a Pennsylvania medical supply company, introduced Bauhinia to Cross Country Paper Products Corporation (“Cross Country”). Cross Country is a dental supply company located in New York. Marsin introduced the two companies in the hopes that Cross Country would order cotton-filled gauze through Bauhinia. Complaint ¶7; Sinkow Aff. ¶ 2; Ng Aff. ¶ 9.

To convince Cross Country to place an order through Bauhinia, Bauhinia and Mar-sin communicated regularly with each other and with Cross Country in late 1989 and throughout 1990. Sinkow Aff. ¶¶ 7-9. Bauhinia Director Richard Ng, on behalf of his company, participated in these initial negotiations by making phone calls and sending faxes from Hong Kong to Cross Country in New York. Sinkow Aff. ¶ 9. In September 1990, Ng accompanied Adolph Sinkow, Mar-sin’s president, to Cross Country’s offices on Long Island in New York to meet with individuals associated with Cross Country. Sinkow Aff. ¶¶ 10, 11. Sinkow affirms that Ng “made other sales calls on Cross Country in New York” after his September 1990 visit and that unspecified “Bauhinia representatives have met with representatives of Cross Country in New York since the initial 1990 meeting.” Sinkow Aff. ¶¶ 12, 30. At some point presumably during 1990, Cross Country began ordering cotton-filled gauze through Bauhinia. Complaint ¶ 7; Ng Aff. ¶ 9.

According to Sinkow, sometime after Bauhinia and Marsin initiated negotiations with Cross Country, Bauhinia agreed to pay Mar-sin commissions on all Cross Country’s cot *185 ton-filled gauze orders. Sinkow Aff. ¶¶ 6,14. Bauhinia initially complied, but later ceased paying commissions to Marsin. Complaint ¶ 8. Marsin brought this action for the balance of the payments. Bauhinia counters that it was only obligated to pay commissions until it reimbursed Marsin for an earlier shipment of latex gloves. Ng Aff. ¶¶ 6-11. Although the parties dispute the terms of the commission agreement, they agree that Sinkow and Ng negotiated the agreement on behalf of their respective companies while Sinkow was in Pennsylvania and Ng was in Hong Kong. Sinkow Aff. ¶ 14; Ng Aff. ¶ 11.

DISCUSSION

I. Personal Jurisdiction

A Motion to Dismiss Standards

Prior to discovery, a plaintiff may defeat a Rule 12(b)(2) motion to dismiss a complaint by a prima facie showing of in personam jurisdiction over the defendant. Hojfritz for Cutlery, Inc. v. Amajac, Ltd., 763 F.2d 55, 57 (2d Cir.1985). The plaintiff can satisfy this burden on the basis of her allegations alone, “by pleading in good faith ... legally sufficient allegations of jurisdiction.” Ball v. Metalurgie Hoboken-Overpelt, S.A., 902 F.2d 194, 197 (2d Cir.), cert. denied, 498 U.S. 854, 111 S.Ct. 150, 112 L.Ed.2d 116 (1990). At this early stage in the ease, a court should construe all pleadings and any affidavits before it in the light most favorable to the plaintiff, Id., to determine whether facts “may exist” that would satisfy jurisdictional requirements. PC COM, Inc. v. Proteon, Inc., 906 F.Supp. 894, 905 (S.D.N.Y. 1995).

B. Personal jurisdiction requirements

A federal court sitting in New York may exercise personal jurisdiction over a foreign corporation if the corporation’s contacts with New York meet the requirements of Due Process and if (1) the corporation is either “present” in New York State for purposes of New York State Civil Practice Law Rules (“CPLR”) Section 301, or (2) the corporation’s contacts with New York meet the requirements of the New York State Long Arm Statute. CPLR § 302. Arrowsmith v. United Press Int’l, 320 F.2d 219, 222-31 (2d Cir.1963) (the law of the forum state governs whether a federal court has personal jurisdiction over a defendant in a diversity action).

(i) Due Process

The requirements of Due Process are satisfied if a defendant’s contacts with the forum state are such that the maintenance of the suit does not offend “traditional notions of fair play and substantial justice.” Int’l Shoe Co. v. State of Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945). CPLR §§ 301 and 302 permit New York courts a jurisdictional reach that is somewhat narrower than the maximum permissible under the Due Process clause. Longines-Wittnauer Watch Co., Inc. v. Barnes & Reinecke, Inc., 15 N.Y.2d 443, 261 N.Y.S.2d 8, 209 N.E.2d 68 (Ct.App.), cert. denied, 382 U.S. 905, 86 S.Ct. 241, 15 L.Ed.2d 158 (1965).

(ii) CPLR § 301

CPLR Section 301 provides, “a court may exercise such jurisdiction over persons, property or status as might have been- exercised heretofore.” As construed by the courts of New York, this section would authorize this Court to exercise personal jurisdiction over a foreign corporation like Bauhinia if it “engaged in such a continuous and systematic course of ‘doing business’ here as to warrant a finding of its ‘presence’ in this jurisdiction.” Landoil Resources Corp. v. Alexander & Alexander Servs., Inc., 918 F.2d 1039, 1043 (2d Cir.1990) (quoting McGowan v. Smith, 52 N.Y.2d 268, 437 N.Y.S.2d 643, 645, 419 N.E.2d 321, 322-323 (N.Y.Ct.App.1981)). To justify the exercise of personal jurisdiction under this provision, Marsin would have to demonstrate that Bauhinia is present in New York “not occasionally or casually, but with a fair measure of permanence and continuity.” Landoil, 918 F.2d at 1043 (quoting Tauza v. Susquehanna Coal Co., 220 N.Y. 259, 267, 115 N.E. 915 (1917)). The test of a corporation’s presence is fact based and case specific.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hunter v. Deutsche Lufthansa AG
863 F. Supp. 2d 190 (E.D. New York, 2012)
UIH-SFCC Holdings, L.P. v. Brigato
51 P.3d 1076 (Colorado Court of Appeals, 2002)
Anthem Ins. Companies v. Tenet Healthcare Corp.
730 N.E.2d 1227 (Indiana Supreme Court, 2000)
Bravo Co. v. Chum, Ltd.
60 F. Supp. 2d 52 (E.D. New York, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
948 F. Supp. 180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marsin-medical-international-inc-v-bauhinia-ltd-nyed-1996.