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Luis VARGAS GARMENDIA et al., Respondents-Appellants, v. BRIAN O'NEILL et al., Appellants-Respondents.

Plaintiffs allege that defendants breached their duty under the laws of Uruguay to protect Banco Comercial, one of that country's oldest and largest banks, from fraudulent conduct in which two of its inside directors allegedly engaged, and which drained the bank of its assets precipitating its collapse. The court properly dismissed the action after defendants showed it would be better litigated in Uruguay (see Islamic Republic of Iran v Pahlavi, 62 NY2d 474, 478-479, cert denied 469 US 1108). Uruguay has an interest in adjudicating claims involving its own banking institutions (see Phat Tan Nguyen v Banque Indosuez, 19 AD3d 292, 295, lv denied 6 NY3d 703), and, given that much of the evidence — for example, evidence in the custody of the government of Uruguay and testimony and documents from the bank's external auditors — is located in Uruguay, litigating in New York would present a hardship to defendants (see Continental Ins. Co. v Polaris Indus. Partners, 199 AD2d 222, 223).

The court also properly declined to adjourn the motion to dismiss until after completion of discovery. Plaintiffs failed to show that the requested discovery could adduce facts establishing New York as a proper forum for the action (see de Enamorado v Central Am. S.S. Agency, 160 AD2d 182).

The imposition of the above-quoted condition of dismissal is not consistent with the CPLR mechanism for enforcement of foreign country money judgments (Network Fin. Inc. v JPMorgan Chase Co., 41 AD3d 254, 255).

We have considered plaintiffs' remaining arguments and find them unavailing.

[ See 2007 NY Slip Op 30192(U).]

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GARMENDIA v. O'NEILL
(Dec 18, 2007)