Summary
affirming Supreme Court's dismissal of CDS fraud claim where the parties were located in Korea, the transaction occurred in Korea, and the alleged injury was suffered by a Korean corporation
Summary of this case from Stevenson v. Amp Solar Grp., Inc.Opinion
04-28-2015
HANWHA LIFE INSURANCE formerly known as Korea Life Insurance, Plaintiff–Appellant, v. UBS AG, et al., Defendants–Respondents.
Kirby McInerney LLP, New York (Andrew M. McNeela of counsel), for appellant. Sullivan & Cromwell LLP, New York (Robert J. Giuffra, Jr. of counsel), for respondents.
Kirby McInerney LLP, New York (Andrew M. McNeela of counsel), for appellant.
Sullivan & Cromwell LLP, New York (Robert J. Giuffra, Jr. of counsel), for respondents.
GONZALEZ, P.J., MAZZARELLI, RENWICK, GISCHE, JJ.
Opinion Order, Supreme Court, New York County (Charles E. Ramos, J.), entered May 15, 2014, which granted defendants' motion to dismiss the complaint on the ground of forum non conveniens, unanimously affirmed, with costs.
The motion court providently exercised its discretion in weighing the relevant factors and finding that defendants carried their burden of demonstrating that this action lacks a substantial New York nexus. The prospectus for the investment at issue was sent to plaintiff in Korea, the transaction was effected by plaintiff in Korea and defendant's employees in Hong Kong (see Peters v. Peters, 101 A.D.3d 403, 955 N.Y.S.2d 315 [1st Dept.2012] ), the alleged injury to plaintiff was suffered in Korea, and that jurisdiction has an interest in adjudicating a matter involving harm to a Korean corporation; New York has no such interest (see Phat Tan Nguyen v. Banque Indosuez, 19 A.D.3d 292, 295, 797 N.Y.S.2d 89 [1st Dept.2005], lv. denied 6 N.Y.3d 703, 811 N.Y.S.2d 335, 844 N.E.2d 790 [2006] ). These factors outweighed the fact that defendants have a New York office and that certain documents and witnesses knowledgeable about the financial product at issue may be located in New York (see Becker v. Federal Home Loan Mtge. Corp., 114 A.D.3d 519, 520, 981 N.Y.S.2d 379 [1st Dept.2014] ; cf. OrthoTec, LLC v. Healthpoint Capital, LLC, 84 A.D.3d 702, 924 N.Y.S.2d 78 [1st Dept.2011] ). The motion court correctly rejected plaintiff's contention that the gravamen of the wrongs alleged involved a certain entity (REVE) that may have been structured by defendants in New York, aptly noting that plaintiff did not purchase that entity and that the only detailed allegations in the complaint relating to that entity were of conduct in Stamford, Connecticut.
In addition, Korean law applies (see FIMBank P.L.C. v. Woori Fin. Holdings Co. Ltd., 104 A.D.3d 602, 962 N.Y.S.2d 114 [1st Dept.2013] ). Although such factor is not dispositive (see Flame S.A. v. Worldlink Intl. [Holding] Ltd., 107 A.D.3d 436, 438, 967 N.Y.S.2d 328 [1st Dept.2013], lv. denied 22 N.Y.3d 855, 2013 WL 6067977 [2013] ), Korea is an adequate alternative forum, its limitations on discovery notwithstanding, particularly in light of defendants' representation that they will submit to its jurisdiction in the event of dismissal.
In view of the foregoing, it is unnecessary to address the other grounds urged for affirmance.