J.R. v. Advanced Bionics

U.S. DISTRICT COURT
NORTHERN DISTRICT OF NEW YORK
Civil Practice

New York Law Journal

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Judge Gary Sharpe

California-based Astro Seal's contract to provide California-made components for Advanced Bionic's cochlear implant was negotiated and executed in California. After delivery to Advanced Bionics in California, Astro Seal neither knew nor controlled where completed implants were sold. Plaintiffs alleged that Astro Seal's defective "feed thru" component caused plaintiff J.R. to endure multiple surgeries to treat his hearing condition. Following jurisdictional discovery's completion, Astro Seal renewed its dismissal motion, which district court granted after finding plaintiffs unable to prove Astro Seal subject to New York's general or long-arm jurisdiction. Astro Seal's only identified contact with New York was its website, which was not specifically directed to New York residents. In finding Astro Seal not subject to New York's long-arm jurisdiction, the court was not persuaded by plaintiffs' claim that the 1.694 percent of revenue Astro Seal derived from sales in New York from 2011 to 2011 was "substantial." Not only did plaintiffs fail to prove Astro Seal regularly conducts or solicits business, or "derives substantial revenue" from New York, they did not mention Astro Seal's revenues received from interstate or international commerce.

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