Legal Question in Consumer Law in New York

Filing Small Claims Suit

I feel that a warranty company did

not live up to the terms of the

contract I bought from them via a

local car dealership. The company

has a TX address and I cannot find

any NY address. I have been told

that even though they sold their

product here in NY, I would have to

go to TX to sue them. Is this

correct? If so, could I sue the

dealer, who is local, who sold me

the warranty which has now

proven to be something other than

what they promised?


Asked on 11/10/08, 9:34 pm

1 Answer from Attorneys

Michael Markowitz Michael A. Markowitz, PC

Re: Filing Small Claims Suit

Under the long arm jurisdiction statute, NY may have jurisdiction over a non-entity if that company "transacts any business within the state or contracts anywhere to supply goods or services in the state." CPLR 302(a)(1). The defendant conduct must be directed to NY such that the defendant could reasonably expect to be held accountable under NY jurisdiction.

However, I bet that there is a choice of forum clause in the warranty you received. A choice of forum clause is a paragraph in a contract where the parties agreed to the venue should there be a dispute under the contract. Therefore, I would read the entire warranty to determine if you agreed to commence an action in Texas, or if you agreed to arbitration if there is a dispute.

Mike.

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Answered on 11/11/08, 8:32 am


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