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Progress of Related Action and Jurisdictional Issues Bar Consolidation in Nassau County: Varkonyi v TS Multi-Strategy Fund, LP

Posted in Consolidation, CPLR 602, Industry: financial services, Justice Driscoll, Timothy, Limited Liability Partnerships, Nassau, Subject Matter Jurisdiction, Venue

In a September 30, 2011, decision by Justice Driscoll, the court denied plaintiffs’ motion for an order consolidating the instant action and a related New York County action in Nassau County and directed them to make the motion in New York County instead. Plaintiffs and the receiver for the defendant-partnership agreed that the two actions should be consolidated based on common questions of law and fact but disagreed about the venue for consolidation. Because the related action pending in New York County “had progressed further than the instant action,” as well as certain jurisdictional limitations under the NY Revised Limited Partnership Act raised by the receiver in opposition to plaintiffs’ motion, the court concluded “that any such consolidation should nevertheless occur in New York.”        

Varkonyi v TS Multi-Strategy Fund, LP, Sup Ct, Nassau County, September 30, 2011, Driscoll, J., Index No. 3817/2011