Venue Cannot Be Based on Location of a Party That Was Not A Party When Lawsuit Was Commenced

On September 26, 2022, Justice Reed of the New York County Commercial Division issued a decision in Ahlin v. Lehr, 2022 NY Slip Op. 50900(U), holding that venue cannot be based on the location of a party that was not a party when a lawsuit was commenced, explaining:

Except where otherwise prescribed by law, the place of trial shall be in the county in which one of the parties resided when the action was commenced, or in the county in which a substantial part of the events or omissions giving rise to the claim occurred. Venue may be changed by the court, upon motion, if the county designated for trial is not proper.

Here, the complaint does not set forth a basis for venue in New York County. Defendant Spot On Lighting, LLC is a domestic limited liability company with its principal place of business in Westchester County, New York. Defendant Lehr was served with the summons and complaint on October 22, 2021 in Larchmont, New York. Both of those defendants are domiciled in Westchester County. With regard to plaintiff, the complaint states only that plaintiff is a resident of New York State.

Plaintiff has not rebutted the assertion by defendants that he is not, nor ever has been, a resident of New York County. Rather, plaintiff argues that venue in New York County is proper because New York County is the principal place of business for defendant Nulux, Inc. Nulux, however, was not a party when this action was commenced. Venue cannot be based upon the domicile of an entity that was not a party to the action when the action was commenced.

Moreover, there is no indication anywhere in the pleadings or motion papers that the convenience of witnesses or the ends of justice would be served by retaining venue in New York County. Transfer to Westchester County, under these circumstances, then, is entirely proper.

(Internal citations omitted) (emphasis added).

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