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LIBRA GLOBAL TECHNOLOGY SERVICES (UK) LIMITED et al., Appellants, v. TELEMEDIA INTERNATIONAL, LTD., Respondent.

Herman Cahn, J.

The IAS Court properly found that personal jurisdiction over defendant Telemedia International had not been obtained under CPLR 301, since Telemedia-USA, the New York premises of which were used in connection with the negotiation of the contract sued upon, although a wholly owned subsidiary of Telemedia International, was not a "mere department" thereof ( see, Delagi v. Volkswagenwerk AG, 29 N.Y.2d 426, 432; Taca Intl. Airlines v. Rolls-Royce of England, 15 N.Y.2d 97, 102). Nor was Telemedia-USA acting as Telemedia International's agent in the State of New York for jurisdictional purposes ( cf., Frummer v. Hilton Hotels Intl., 19 N.Y.2d 533, cert denied 389 U.S. 923).

Plaintiffs also failed to establish jurisdiction pursuant to CPLR 302 (a) (1), New York's long-arm statute, since Telemedia International did not "project" itself into New York for jurisdictional purposes via the 45-minute video-conference, during which the parties negotiated a portion of their contract for the provision of worldwide telecommunications services ( see, Worldwide Futgol Assocs. v. Event Entertainment, 983 F. Supp. 173, 177). Further, where, as here, a defendant has signed a contract outside of this State, a court cannot exercise jurisdiction over that defendant pursuant to CPLR 302 (a) (1) based simply on the circumstance that the plaintiff signed in New York ( see, Standard Wine Liq. Co. v. Bombay Spirits Co., 20 N.Y.2d 13, 17; Millner Co. v. Noudar, Lda., 24 A.D.2d 326, 329-330). Finally, jurisdiction under the second prong of CPLR 302 (a) (1) cannot be based upon the existence of secondary contracts potentially involving defendant's provision of services in New York ( see, Worldwide Futgol Assocs. v. Event Entertainment, supra, at 181).

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LIBRA GLOBAL TECH. v. TELEMEDIA
(Jan 16, 2001)