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Softel Computers, Inc. v. Grosky

Appellate Division of the Supreme Court of New York, First Department
May 19, 1992
183 A.D.2d 527 (N.Y. App. Div. 1992)

Opinion

May 19, 1992

Appeal from the Supreme Court, New York County (Irma V. Santaella, J.).


By order dated December 6, 1990, the Supreme Court held in abeyance the plaintiffs' motion pursuant to CPLR 2701 for an order directing the defendants to return computer equipment, related materials and expert witness materials and referred the issue of personal jurisdiction pursuant to CPLR 302 to a Special Referee to hear and report. After a hearing, the Referee concluded that long-arm jurisdiction had been obtained over the corporate defendant but that personal jurisdiction had not been acquired over the individual defendants. The Supreme Court, inter alia, adopted the Referee's recommendation that the action against the individual defendants be dismissed. We reverse.

The Referee apparently applied the "fiduciary shield doctrine", which prohibits the exercise of personal jurisdiction over an individual if his dealings in the forum State were solely in a corporate capacity, in concluding that the individual defendants were not subject to personal jurisdiction. However, the Court of Appeals has explicitly rejected this doctrine (Kreutter v McFadden Oil Corp., 71 N.Y.2d 460). As in Kreutter, the individual defendants herein cannot be shielded from personal jurisdiction by having acted on behalf of the defendant corporation. Moreover, jurisdiction was properly obtained over the individual defendants pursuant to CPLR 302 (a) (1) since they engaged in purposeful activity in New York in relation to the transactions giving rise to the complaint (supra; Fabrikant Sons v. Adrianne Kahn, Inc., 144 A.D.2d 264).

We have considered the defendants' remaining contentions and find them to be without merit.

Concur — Murphy, P.J., Sullivan, Rosenberger and Kassal, JJ.


Summaries of

Softel Computers, Inc. v. Grosky

Appellate Division of the Supreme Court of New York, First Department
May 19, 1992
183 A.D.2d 527 (N.Y. App. Div. 1992)
Case details for

Softel Computers, Inc. v. Grosky

Case Details

Full title:SOFTEL COMPUTERS, INC., et al., Appellants, v. AARON GROSKY et al.…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: May 19, 1992

Citations

183 A.D.2d 527 (N.Y. App. Div. 1992)
584 N.Y.S.2d 2

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