988 F. Supp. 2d 330
E.D.N.Y.2013Background
- Plaintiff Roger Levans (NY resident) arrived in Guyana on Dec. 29, 2010, checked locked luggage on a Delta flight to JFK; upon arrival in New York cocaine was found in his bag, his lock removed, and he was arrested; charges were later dropped after an investigation concluded the luggage had been tampered with.
- Levans amended his complaint to add Roraima Airways (Guyanese company) as a defendant, alleging negligence in handling/overseeing baggage that led to narcotics being placed in his suitcase.
- Roraima had two written contracts with Delta to provide ground handling and airport security services at Cheddi Jagan International Airport in Guyana; the agreements specify Guyana as the forum and Guyanese law; one agreement references compliance with TSA/FAA and U.S. laws.
- Roraima is a small, Guyana-based company with no offices or personnel in New York; plaintiff points to Roraima’s contractual relationship with Delta, its handling of luggage bound for New York, and a passive website as contacts with New York.
- Roraima moved to dismiss for lack of personal jurisdiction under New York’s long-arm statute (CPLR § 302) and for other non-jurisdictional defects; the court considered only the personal jurisdiction issue and granted dismissal for lack of jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Personal jurisdiction under CPLR § 302(a)(1) — "transacts business" | Roraima transacts business in NY through contracts with Delta, handling luggage destined for JFK, and marketing via website | Roraima’s activities occurred in Guyana; contacts are indirect via Delta and a passive website; no purposeful availment of NY | No — plaintiff failed to make a prima facie showing that Roraima transacted business in NY |
| Personal jurisdiction under CPLR § 302(a)(1) — "contracts to supply goods or services in the state" | Roraima caused services/goods to be provided in NY by performing services for flights to JFK | Agreements governed services in Guyana, not services supplied in New York | No — services were performed in Guyana; claim does not arise from supplying services in NY |
| Personal jurisdiction under CPLR § 302(a)(3) — situs of injury (tort outside NY causing injury in NY) | Injury occurred in NY because Levans suffered arrest, detention, job loss, and publicity in NY | The original tort and first effect (placement of cocaine) occurred in Guyana; any arrest consequences flowed to NY but situs is Guyana | No — situs of injury is Guyana; § 302(a)(3) not satisfied |
| Personal jurisdiction under CPLR § 302(a)(3)(i)/(ii) — foreseeability and ongoing NY contacts | Roraima should have foreseen consequences in NY because it contracted to handle luggage for Delta flights to JFK and thus regularly did business affecting NY | Roraima’s contacts with NY are indirect and premised on Delta’s operations; no substantial, persistent NY business or purposeful availment; Roraima derives local revenue only | No — plaintiff failed to plead substantial ongoing NY activity or purposeful availment; foreseeability alone insufficient |
Key Cases Cited
- Marine Midland Bank, N.A. v. Miller, 664 F.2d 899 (2d Cir.) (plaintiff need only make prima facie showing of jurisdiction at pre-evidentiary stage)
- Solé Resort, S.A. de C.V. v. Allure Resorts Mgmt., LLC, 450 F.3d 100 (2d Cir.) ("arising from" requirement for CPLR § 302(a)(1) claims)
- Beacon Enters., Inc. v. Menzies, 715 F.2d 757 (2d Cir.) (use of § 302(a)(1) for contract breaches or commercial torts arising from transacted business)
- Best Van Lines, Inc. v. Walker, 490 F.3d 239 (2d Cir.) (purposeful availment standard under transacts business clause)
- LaMarca v. Pak-Mor Mfg. Co., 95 N.Y.2d 210 (N.Y.) (foreseeability and purposeful availment analysis under § 302(a)(3))
- Penguin Grp. (USA) Inc. v. Am. Buddha, 609 F.3d 30 (2d Cir.) (situs-of-injury test and locating the "original event")