New York Injury Attorney Blog

New York Supreme Court: Bossy v. Camelback

Solicitation Plus. It sounds like what brought down the former governor of New York. It's not quite as juicy, but without it, your New York case against a foreign corporation with a website on the net goes nowhere.

Why is this important? It depends how you use the internet.

In this case, Evan Bossy was injured when he skied into an unpadded pole on the beginner trail at Camelback, a ski resort located in Pennsylvania. Evan’s parents brought suit in New York on Evan’s behalf, suing Camelback for negligence.

Camelback moved to dismiss the case, claiming it could not be sued in New York because the court had no personal jurisdiction over this out-of-state corporation. Camelback runs a ski resort in Pennsylvania. It is not a New York corporation (any business incorporated outside of New York is a foreign corporation). It has no employees or offices in New York, was not negligent in New York and does not transact business in New York.

It does, however, have a website. Plaintiffs claim that Camelback is always “doing business” in New York “by virtue of its constant presence here through its interactive website” where skiers can book reservations and purchase lift tickets on line. Moreover, Camelback “solicits” New York customers by “placement of advertising flyers in New York retail ski shops.”

The question is whether this is enough business to be considered doing business as that is defined by New York law. According to the court, it’s not enough and it dismissed the case. An interactive website alone will not give you jurisdiction over a foreign corporation. You need more. You need “the presences of traditional indicia of doing business” or substantial and continuous solicitation...coupled with financial and commercial dealings or other activities of substance in New York,” i.e., solicitation plus.

Even if the court treated Camelback's interactive website as a constant solicitation, absent other factors such as engagement in financial or commercial dealing or other activities of substance in New York, such cyber-office-space does not meet the solicitation plus threshold which would confer jurisdiction on this foreign corporation. Under the circumstances, proper venue would either be Federal Court or Pennsylvania.

So back in New York, case dismissed. Such is the result of applying Flintstone rules to Jetson-age problems. One suspects the state legislature and the higher courts will eventually have to sort through all the nuances of cyber commerce, but until then these matters will be resolved on a website by website basis.

What does that mean for web browsers and shoppers in the Empire State? The home page may get the home court advantage if there’s a problem on line. And it means buyer beware when you add to your cart.

Posted by Mark A. Eskenazi | Permalink | Email This Post | Comments (0)

Posted In: Damages , Injuries , New York State Courts , The Internet

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U.S. Court of Appeals for the Fifth Circuit: United States v. Porter

There all kinds of new ways to commit crime: There’s identify theft, credit card fraud, computer hacking and stealing cable or satellite signals. There are also new ways to commit old crimes. Thanks to advances in color copying, anyone can turn counterfeiter with low or no overhead and just a little bit of ingenuity and determination. But as always, good art is in the eye of the beholder.

The question presented almost sounds existential: If you’re a terrible counterfeiter and no one will actually believe that your funny money is real, have you really committed a crime?

According to the court, a bad job is still a bad act and a C minus C note will still land you in stir.

Chrystal Porter was only too willing to participate in an ill-conceived plan to make some easy money and help her friends out of a jam. Joey Barret lived with Erica Horton. Barret owed Carlos drug money. When Barret couldn’t pay, Carlos began threatening the couple and their children. As a compromise born of necessity, Barret and Erica agreed to let Carlos use Erica’s color copier to make fake money to pay off the drug debt.

This was not top-shelf work. Color copies of each side of a hundred dollar bill were duplicated onto manila paper. The two sides were cut out and glued together, then crumpled to give them that genuine used look. Erica completed the masterpiece by drawing lines on the fakes to look like the magnetic strips on the real deals. Carlos needed a place to pass the bad bucks and Erica said she knew a cashier at Wal-Mart. Enter Chrystal Porter.

When Porter showed up at the house, Erica presented their art project and asked if Porter would accept the fakes at her register at Wal-Mart. After studying the bills, Porter concluded, “Yeah, this will work.” When Porter was on the clock, Erica showed up and bought $300 worth of gift certificates with the bogus bucks and Joey bought another $200. Needless to say, Wal-Mart discovered the scam almost immediately and within 2 days the cops were at Porter’s home where she spilled her guts and dropped a dime on Joey and Erica.

Porter was indicted, tried and convicted for conspiracy to manufacture and utter counterfeit US obligations.

Porter’s defense at trial was that this was such a terrible forgery it couldn’t be taken seriously and therefore the fakes couldn’t be considered counterfeit. As she put it, “the instrument that she specifically agreed to assist in passing did not sufficiently resemble genuine currency to be counterfeit” so it was impossible for her to be guilty of conspiracy. She went so far as to say her copies were no better than monopoly money and couldn’t fool anyone.

At trial, the case turned on the details of the jury charge. Defendant argued that the jury should have been told the following: “A bill is counterfeit only if it possesses similitude: it bears such a likeness or resemblance to genuine currency as is calculated to deceive an honest, sensible and unsuspecting person of ordinary observation and care when dealing with a person supposed to be upright and honest.” The lower court thought otherwise and instead charged that “To be counterfeit, a Federal Reserve note must have a likeness or resemblance to genuine currency.” The “likeness” was good enough for the jury and Porter was convicted.

Porter raised this argument again on appeal, making this fine distinction: “even though she conspired to pass fake $100 bills, she did not conspire to pass counterfeit $100 bills. In essence, she argues that, by refusing to instruct the jury using her definition of counterfeit, the trial court denied her the opportunity to present her main defense to the jury.” Put another way, Porter claimed she was such a bad criminal she didn’t commit a crime.

Not persuaded by the weight of her argument, the Court of Appeals found that the jury charge Porter wanted was appropriate only if she had been charged with violations of 18 USC Section 473 (requiring the perpetrator to acquire or dispose of such false obligations with “the specific intent that they be perceived ‘as true and genuine.’” Since Porter’s conspiracy charge was based only on violations of Section 471 (making counterfeit bills) and Section 472 (passing fake bills) all that was required for the bills to be considered counterfeit was “a likeness or resemblance to genuine currency.”

They may have been really bad bills, but they were good enough for the Feds, for the jury, and now, for the Appellate court.

Bad paper is bad paper. Or is it? The only thing it will buy you at Wal-Mart is time. On Wall Street, however, bad paper can still buy you a bail out.

Porter’s real mistake was not getting her MBA or heeding the Wall Street warning: DON'T TRY THIS AT HOME.

Posted by Mark A. Eskenazi | Permalink | Email This Post | Comments (0)

Posted In: Brave New World , Crime and Punishment , U.S. Court of Appeals

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Supreme Court of the State of New York, Appellate Division, Second Department: State Farm v. Langan

In politics you have to “follow the money” to figure out why some laws pass and others don’t. In automobile accidents, you have to figure out if there’s insurance coverage to compensate the injured party. That’s especially tricky if the car is a murder weapon.

On February 12, 2008 Neil Spicehandler was struck and fatally injured by a car driven by Ronald Popadich. Popadich was on a murderous spree which included killing a neighbor, shooting a cabbie, attempting and then succeeding in running down a pedestrian, namely, the late Mr. Spicehandler. In September 2005 Popadich pleaded guilty to second degree murder.

The guilty verdict presented a tough issue for John Langan, Administrator of the Estate of Mr. Spicehandler. How can you collect in a civil suit from a driver who intends to kill the victim? Intentional criminal acts are not covered by automobile insurance. Accidents are. Since this was no accident, there was no way to collect from any policy issued for the murderous driver’s vehicle. So Langan looked to his own State Farm auto policy, which he claimed covered Spicehandler in two ways. State Farm, in turn, sued to have the case dismissed and to free it from any financial responsibility under Langan’s auto policy since this was murder, plain and simple.

Maybe not so plain or simple. First, the court agreed that Spicehandler’s Estate could not collect under the uninsured motorist endorsement of Langan’s policy. The uninsured motorist endorsement (of the injured party’s insurance policy) provides coverage for a person when the offending car has either no insurance or limited insurance; it then kicks in as if it were the coverage for the other car, or it kicks in to provide additional coverage above what the other car carried. As the court said, since Popadich couldn’t have coverage for his intentional act of murder, “it follows, then, that, because no coverage would have been provided under a standard automobile liability policy issued to Papadich, State Farm is not obligated to provide benefits under the uninsured motorist endorsement of its policy with Langan.”

So State Farm is clear? Not quite.

Langan pointed to his State Farm policy’s “mandatory personal injury protection endorsement and its death, dismemberment, and loss of sight provisions” and said this was still an accident as that’s defined in his policy and State Farm had to pay. The court agreed.

Even though Mr. Spicehandler was murdered, an intentional act from the viewpoint of the murderer, from the viewpoint of the one murdered “the event was ‘unexpected, unusual and unforeseen’ and not brought about by the insured’s own ‘misconduct, provocation or assault.’” And it was the covered individual’s perspective that governed. Without a specific exclusion for injury or death caused by an intentional act in the State Farm Policy, the insurance company was on the hook and obligated to provide benefits because murder or not, Mr.Spicehandler didn't see death coming.

The old TV show was called Murder, She Wrote. For the Insurance carrier, unless it writes an exclusion for murder, the events are seen from the victim’s eyes, and one thing everyone can agree on is that from the victim’s perspective, murder is “unexpected, unusual and unforeseen.”

One suspects that to State Farm Insurance this decision was also “unexpected, unusual and unforeseen” and that it never knew it was going to get murdered in court.

Posted by Mark A. Eskenazi | Permalink | Email This Post

Posted In: Auto Accidents , Damages , Injuries , New York State Courts , Wrongful Death

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