FEDERAL INSURANCE COMPANY v. CHEVALIER MACHINERY INC (1999)

Supreme Court erred in granting the cross motion of defendant Hsiu Fong Machinery Company of Taiwan (Hsiu Fong) to dismiss the complaint for lack of in personam jurisdiction (see, CPLR 3211[a][8] ).   In response to that cross motion, plaintiffs established that Hsiu Fong was the manufacturer of the machine that they claimed was dangerous, unsafe and defective and that caused a fire on their premises in Rochester, New York. They additionally submitted evidence that there was an interrelationship between Hsiu Fong and the other defendants and that Hsiu Fong and defendant Falcon Machine Tool Co., Ltd. (of Taiwan) had common shareholders.   Plaintiffs further alleged that facts essential to oppose the cross motion may exist but were in the exclusive control of Hsiu Fong (see, CPLR 3211[d] ).  In light of plaintiffs' proof and the complex interrelationships between the corporate defendants, we conclude that plaintiffs have demonstrated that facts may exist to warrant the exercise of jurisdiction over Hsiu Fong under New York's long-arm statute (see, Peterson v. Spartan Indus., 33 N.Y.2d 463, 466-467, 354 N.Y.S.2d 905, 310 N.E.2d 513;  Jacobson v. Princess Hotels Intl., 101 A.D.2d 757, 758, 475 N.Y.S.2d 846).   Consequently, we reverse the order, deny the cross motion and reinstate the complaint against Hsiu Fong without prejudice to its right to bring a further motion to dismiss after discovery, if so advised.

Order unanimously reversed on the law without costs, cross motion denied and complaint against defendant Hsiu Fong Machinery Company of Taiwan reinstated.

MEMORANDUM: