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?
1 Answer from Attorneys
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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