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Natasha, Inc. v. Shopkorn

Supreme Court, Appellate Division, First Department, New York.
Dec 29, 2015
134 A.D.3d 598 (N.Y. App. Div. 2015)

Opinion

15656 653477/13.

12-29-2015

NATASHA, INC., etc., et al., Plaintiffs–Respondents, v. Stanley SHOPKORN, Defendant–Appellant.

Wachtell, Lipton Rosen & Katz, New York (David Gruenstein of counsel), for appellant. Studin Young, Garden City (Tamir Young of counsel), for respondents.


Wachtell, Lipton Rosen & Katz, New York (David Gruenstein of counsel), for appellant.

Studin Young, Garden City (Tamir Young of counsel), for respondents.

Opinion

Order, Supreme Court, New York County (Jeffrey K. Oing, J.), entered on or about February 3, 2015, which, to the extent appealed from, denied defendant's motion to dismiss the first, second, third, eighth, and eleventh causes of action, unanimously reversed, on the law, and the motion granted. The Clerk is directed to enter judgment dismissing the complaint.

The first, second, third, and eighth causes of action, which allege oppression of plaintiff minority shareholders by defendant as a controlling member of the majority, fail to state a cause of action. The rights claimed by plaintiffs exist solely by virtue of section 184I of the British Virgin Islands Companies Act of 2004, since, under the common law, the British Virgin Islands did not recognize any fiduciary duty owed by majority shareholders to the minority (see Dragon Inv. Co. II LLC v. Shanahan, 49 A.D.3d 403, 404, 854 N.Y.S.2d 115 1st Dept.2008, citing Peskin v. Anderson, (2001) BCC 874, (2001) 1 BCLC 372, 2000 WL 1841707 2000 ). Moreover, under the Act, the High Court of the British Virgin Islands has exclusive adjudicatory authority over such claims. Plaintiffs' foreign law expert stated that he knew of no instance in which a British Virgin Islands court had enjoined a foreign action claiming oppression under the laws of the foreign jurisdiction; he did not opine about any bar on foreign litigation of claims under the British Virgin Islands statute at issue here. In any event, contrary to plaintiffs' contention, nothing about the exclusive jurisdiction aspect of the subject statute warrants denying it recognition (see Welsbach Elec. Corp. v. MasTec N. Am., Inc., 7 N.Y.3d 624, 629, 825 N.Y.S.2d 692, 859 N.E.2d 498 2006 ).

The eleventh cause of action, brought by plaintiff Weinstein, alleges tortious interference with contract. This claim is also inextricably intertwined with the statutory causes of action, which, as previously discussed, must be litigated in the British Virgin Islands. Accordingly, we dismiss the eleventh cause of action because, among other infirmities, New York is not a convenient forum for its adjudication.

We have considered and rejected the parties' additional claims.


Summaries of

Natasha, Inc. v. Shopkorn

Supreme Court, Appellate Division, First Department, New York.
Dec 29, 2015
134 A.D.3d 598 (N.Y. App. Div. 2015)
Case details for

Natasha, Inc. v. Shopkorn

Case Details

Full title:Natasha, Inc., etc., et al., Plaintiffs-Respondents, v. Stanley Shopkorn…

Court:Supreme Court, Appellate Division, First Department, New York.

Date published: Dec 29, 2015

Citations

134 A.D.3d 598 (N.Y. App. Div. 2015)
2015 N.Y. Slip Op. 9600
22 N.Y.S.3d 203