Prefabco, Inc. v. Olin Corp.

Decision Date10 July 1979
Citation71 A.D.2d 587,418 N.Y.S.2d 432
PartiesPREFABCO, INC., et ano., Plaintiffs-Respondents, v. OLIN CORPORATION, Defendant-Appellant.
CourtNew York Supreme Court — Appellate Division

Neil Woodworth, Troy, for plaintiffs-respondents.

S. B. Prystowsky, New York City, for defendant-appellant.

Before KUPFERMAN, J. P., and BIRNS, FEIN, SANDLER and LANE, JJ.

MEMORANDUM DECISION.

Order of the Supreme Court, New York County, entered April 17, 1978, denying defendant's motion for summary judgment dismissing the complaint on grounds of Forum non conveniens, or alternatively, as time-barred under the statute of limitations, unanimously reversed, on the law, and defendant's motion for summary judgment as time-barred under the statute of limitations granted, without costs or disbursements.

Defendant (appellant) contends that the cause of action of plaintiff accrued in Pennsylvania. Accordingly, defendant argues, the operation of CPLR § 202 mandates dismissal of this action. CPLR § 202 provides that:

(A)n action based upon a cause of action accruing without the state cannot be commenced after the expiration of the time period limited by the laws of either the state or the place without the state where the cause of action accrued, except that where the cause of action accrued in favor of a resident of the state, the time limited by the laws of the state shall apply.

In the case at bar, it is undisputed that plaintiff is a foreign corporation. Additionally, as stated by Special Term, "it is clear, for pleading purposes, that Prefabco's cause of action is not barred by the applicable six-year statute of limitations (of New York) CPLR 213(9); see also Gemini Typographers, Inc. v. Mergenthaler Linotype Co., 48 A.D.2d 637 (368 N.Y.S.2d 210)) . . . (but that) it is undisputed that this action would be barred under the Statute of Limitations of any other state having apparent jurisdiction", (including Pennsylvania).

Accordingly, the critical issue to be resolved in order to determine the applicability of CPLR § 202 is: Whether the instant cause of action in fraud arose within or without the State of New York. Defendant correctly maintains that the action accrued without the State of New York.

The following factors are to be considered upon an analysis of the accrual of the fraud cause of action herein. Plaintiff, Prefabco, Inc., is a Pennsylvania corporation maintaining its office in that state. It was through that office in 1970, that plaintiff ordered the product of defendant, Olin...

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7 cases
  • Klock v. Lehman Bros. Kuhn Loeb Inc., 83 Civ. 3889 (RJW).
    • United States
    • U.S. District Court — Southern District of New York
    • March 30, 1984
    ...410 N.E.2d 745, 431 N.Y.S.2d 812 (1980); 51 N.Y.2d 970, 416 N.E.2d 1055, 435 N.Y.S.2d 720 (1980); Prefabco Inc. v. Olin Corp., 71 A.D.2d 587, 588, 418 N.Y.S.2d 432, 433 (1st Dept.1979). Plaintiff argues that these decisions are not controlling in this case, and that this Court should apply ......
  • Bresson v. Thomson McKinnon Securities, Inc.
    • United States
    • U.S. District Court — Southern District of New York
    • July 22, 1986
    ...1021, 410 N.E.2d 745, 431 N.Y.S.2d 812 (1980); 51 N.Y.2d 970, 416 N.E.2d 1055, 435 N.Y.S.2d 720 (1980); Prefabco Inc. v. Olin Corp., 71 A.D.2d 587, 418 N.Y.S.2d 432, 433 (1st Dept. 1979). Since Bresson is a Pennsylvania citizen, and his monetary loss, if any, was sustained there, his sectio......
  • Diaz v. Portfolio Recovery Assocs., LLC
    • United States
    • U.S. District Court — Eastern District of New York
    • February 28, 2012
    ...743, 484 N.Y.S.2d at 517 (applying and analyzing Section 202 in products liability action); see also Prefabco, Inc. v. Olin Corp., 71 A.D.2d 587, 588, 418 N.Y.S.2d 432, 433 (1st Dep't 1979) (applying Section 202 in action for fraud); Naftalis v. Cooper, No. 101776/05, 2006 WL 684383, at *2 ......
  • Loreley Fin. (Jersey) No., Ltd. v. Merrill Lynch, Pierce, Fenner & Smith Inc.
    • United States
    • New York Supreme Court — Appellate Division
    • May 8, 2014
    ...statute (CPLR 202) and Jersey law. A cause of action for fraud accrues where the loss was sustained ( Prefabco, Inc. v. Olin Corp., 71 A.D.2d 587, 588, 418 N.Y.S.2d 432 [1st Dept.1979] ). Generally, the loss is sustained “where the investors resided” (Matter of Smith Barney, Harris Upham & ......
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