On December 5, 2023, the First Department issued a decision in KPP III CCT LLC v. Douglas Dev. Corp., 2023 NY Slip Op. 06216, holding that an out-of-state corporation was not subject to general jurisdiction in New York because it had subsidiaries here, explaining:
New York courts have general jurisdiction over a corporate defendant when the defendant is incorporated or has its principal place of business in New York, or, in an exceptional case, when its ties to New York are so continuous and systematic as to render it essentially at home in New York. Neither Douglas Development Corporation (Douglas) nor Jemal’s Centre City, LLC (JCC) was essentially at home in New York, as Douglas was organized under the laws of Washington, DC, JCC was organized under the laws of Pennsylvania, and both entities had their principal place of business in Washington, DC. There is also no general jurisdiction over Douglas based on the location of its subsidiaries in New York. The mere department analysis applies only if the parent company is subject to general jurisdiction in the forum. Here, Douglas, the parent company, is not subject to general jurisdiction in New York. Moreover, plaintiff did not allege that Douglas interfered with the selection and assignment of the alter egos’ executive personnel, or that it failed to observe corporate formalities, or that it controlled the alter egos’ finances.(Internal quotations and citations omitted).