Rajmohan Shetty filed suit in New York County Supreme Court against Volvo Cars of North America, LLC (a New Jersey corporation), and Long Island Auto Group (a Nassau County car dealership), seeking accident related damages.*
Claiming that New York County was not a proper forum, Volvo requested that the case be transferred to Nassau County (the location of the car dealership). Although the New York County Supreme Court granted the application, the Appellate Division, First Department, later reversed.
"Foreign" corporations -- typically defined as entities that are principally based outside of the state -- can designate any of New York's 62 counties as "places of residence" for venue purposes.** Since Volvo's filings with the Secretary of State selected New York County for that purpose, the AD believed the suit belonged where it had been initiated, even though Volvo did not maintain an actual physical presence in that particular jurisdiction.
This outcome was further buttressed by the absence of other pertinent considerations -- like the "convenience of material witnesses and the ends of justice" -- which could have justified the application's grant.***
That is Shetty.
For a copy of the Appellate Division's decision, please use the following link: Shetty v. Volvo Cars of N. Am., LLC
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*Ironically, Richmond County is where the plaintiffs reside and the accident occurred.
**Civil Practice Law and Rules § 503 provides, in part, as follows:
(a) Generally. Except where otherwise prescribed by law, the place of trial shall be in the county in which one of the parties resided when it was commenced; or, if none of the parties then resided in the state, in any county designated by the plaintiff. A party resident in more than one county shall be deemed a resident of each such county.
* * *
(c) Corporation. A domestic corporation, or a foreign corporation authorized to transact business in the state, shall be deemed a resident of the county in which its principal office is located; except that such a corporation, if a railroad or other common carrier, shall also be deemed a resident of the county where the cause of action arose.
*** Civil Practice Law and Rules § 510, provides as follows:
The court, upon motion, may change the place of trial of an action where:
1. the county designated for that purpose is not a proper county; or
2. there is reason to believe that an impartial trial cannot be had in the proper county; or
3. the convenience of material witnesses and the ends of justice will be promoted by the change.