Header graphic for print
NY Commercial Case Compendium Your resource for court decisions

Suit Among Minnesota Companies Brought Under Operating Agreement Governed by Minnesota Law Should Be Litigated in Minnesota: Noah’s Ark Processors, LLC v Parente

Posted in Breach of Contract, Breach of Fiduciary Duty, CPLR 302, CPLR 3211, CPLR 327, Forum non Conveniens, Industry: wholesale, Justice Driscoll, Timothy, Limited Liability Companies, Minimum Contacts, Motion to Dismiss, Nassau, Personal Jurisdiction, Tortious Interference with Business Relations, Trade Secrets, Unfair Competition, Unjust Enrichment

In a May 6, 2011, decision by Justice Driscoll, the court granted defendants’ motion to dismiss based on forum non conveniens. Plaintiff meat processors/distributers sued various other processors/distributers under an LLC operating agreement and in connection with other allegations of unfair competition, misappropriation, and interference with contractual relations. Virtually every party in the lawsuit was a business entity from the fine State of Minnesota, and the operating agreement under which the plaintiffs were suing was governed by Minnesota law. Defendants moved to dismiss for lack of personal jurisdiction and forum non conveniens. Because most of the parties lacked contacts with New York, including property ownership and business affiliations, and/or were Minnesota entities, the court granted defendants’ motion under CPLR 327. Specifically, the court found that because plaintiffs’ principal place of business and books and records were in Minnesota, and because their suit primarily was based on an agreement that was to be governed exclusively by Minnesota’s Limited Liability Company Act, the court concluded that the matter should be litigated in Minnesota.    

Noah’s Ark Processors, LLC v Parente., Sup Ct, Nassau County, May 6, 2011, Driscoll, J., Index No. 12835/2010