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Genicom Corp. v. Ekco Group

Appellate Division of the Supreme Court of New York, First Department
Apr 19, 1990
160 A.D.2d 551 (N.Y. App. Div. 1990)

Opinion

April 19, 1990

Appeal from the Supreme Court, New York County (William Davis, J.).


Plaintiff is a Delaware-based corporation having its principal place of business in Virginia, although it also has facilities in New Hampshire. Defendant, formerly known as Centronics, is also a Delaware-based corporation with its principal place of business in New Hampshire. In February of 1987, pursuant to an agreement negotiated and executed in New York and governed by the laws of New York, plaintiff agreed to purchase various assets from defendant, including an account receivable worth $1.732 million owned by Interface Systems, Inc., a Michigan-based corporation. Plaintiff commenced an action against Interface in January of 1988 in the Supreme Court of Hillsborough, New Hampshire, to recover the account receivable. Thereafter, Interface sued defendant, under its former name of Centronics, in the same New Hampshire court, alleging claims for breach of contract, breach of warranty and misrepresentation. After rejecting defendant's request that it defend and indemnify defendant with respect to its action involving Interface, in accordance with the purported terms of the 1987 purchase agreement, plaintiff instituted the instant declaratory action in New York Supreme Court for determination of its obligations under the contract.

Although defendant moved to dismiss the action, asserting lack of in personam jurisdiction and forum non conveniens, the IAS court granted relief to defendant under the latter ground. In that connection, the record reveals that New York has jurisdiction over the dispute due to the purposeful acts of the negotiations and execution of the agreement in New York (see, CPLR 302; Reiner Co. v. Schwartz, 41 N.Y.2d 648), along with defendant's authorization to do business in this State (see, CPLR 301; Augsbury Corp. v. Petrokey Corp., 97 A.D.2d 173, 176; Muollo v. Crestwood Vil., 155 A.D.2d 420). Nevertheless, dismissal of the complaint was appropriate under the doctrine of forum non conveniens since the declaratory action would be better adjudicated in the alternative forum of New Hampshire. This conclusion is based on consideration of the following factors: (1) the parties are both nonresidents of New York; (2) the potential hardship to defendant's witnesses; (3) the availability of an alternative forum; (4) the situs of the underlying cause of action and the burden which will be imposed on the New York courts (see, Islamic Republic v. Pahlavi, 62 N.Y.2d 474, cert denied 469 U.S. 1108; Martin-Trigona v. Waaler Evans, 148 A.D.2d 361).

Concur — Sullivan, J.P., Carro, Milonas, Rosenberger and Smith, JJ.


Summaries of

Genicom Corp. v. Ekco Group

Appellate Division of the Supreme Court of New York, First Department
Apr 19, 1990
160 A.D.2d 551 (N.Y. App. Div. 1990)
Case details for

Genicom Corp. v. Ekco Group

Case Details

Full title:GENICOM CORPORATION, Appellant, v. EKCO GROUP, Formerly Known as…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Apr 19, 1990

Citations

160 A.D.2d 551 (N.Y. App. Div. 1990)

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