Defendant, Auto Specialties Mfg. Co., is a Michigan corporation, with its principal office located in that State. It manufactures auto specialty equipment including garage stands or truck lifts. It does not have a license to do business in New York, nor does it own or lease property within New York State.
On December 28, 1970, plaintiff, Leo Allen, an auto mechanic, was employed by Johns Chevrolet, Inc. in Massena, New York, which was the owner of a five-ton garage truck stand manufactured by defendant. On that date, while plaintiff was working on a pickup truck that was suspended on said truck stand, he was injured when the truck stand collapsed and the pickup truck fell on him. Thereafter, plaintiffs commenced this negligence action by service of. the summons and- complaint upon an officer of defendant in the State of Michigan.
Special Term held that, although plaintiffs failed to prove that the court had jurisdiction of the action, the moving affidavits submitted by defendant were sufficient to establish, jurisdiction and, on that basis, denied the motion. Defendant’s affidavits admit that it has an agent located in Rochester, New York, who secures offers to purchase its products for buyers within New York, and that, upon acceptance of such order, defendant ships its products to the buyers. Defendant’s sales representative is designated as agent and is compensated on a commission basis. Defendant further admits that its employees solicit prospective vendees within New York and that such vendees constitute national and regional accounts of defendant. Special Term
Clause (ii) of paragraph 3 of subdivision (a) of CPLE 302 provides that a court may exercise personal jurisdiction over any nondomiciliary who ‘ ‘ commits a tortious act without the state causing injury to person or property within the state ’ ’ if he 11 expects or should reasonably expect the. act to have consequences in the state and derives substantial revenue from interstate or international commerce.”
The test of whether a defendant expects nr should reasonably expect his act to have consequences within the State is an objective rather than a subjective one. (Brown v. ErieLackawanna R.R. Co.,
Since the statute requires only that consequences in New York be foreseeable, the collateral activities relative to revenue need not occur in New York so long as they are interstate and substantial. What constitutes “ substantial revenue ” under CPLE 302 (subd. [a], par. 3, els. [i] and [ii]) is not defined in the statute. The phrase should be construed to require comparison between a defendant’s gross sales revenue from interstate or international business with total gross sales revenue, and between a defendant’s net profit from interstate or international business with total net profit. (Newman v. Charles S. Nathan, Inc.,
Heblihy, P. J., Cooke, Sweeney and Kane, JJ., concur.
Order reversed, on the law and the facts, and matter remitted to Special Term for further proceedings not inconsistent herewith, without costs.
