Commercial Division Blog
Court Refuses to Dismiss New York Action in Favor of Later-Filed California Action
On July 21, 2017, Justice Kornreich of the New York County Commercial Division issued a decision in Wantickets RDM, LLC v. Eventbrite, Inc., 2017 NY Slip Op. 31548(U), refusing to dismiss a New York action in favor of a later-filed California action, explaining:
Eventbrite's contention that Wantickets' claims should be litigated in California is uncompelling. It is well settled that where, as here, a duplicative action in another jurisdiction merely amounts to a counterclaim seeking a declaration that the New York action has no merit, the New York court will not dismiss its case in favor of the other action, regardless of which action was filed first. That said, this action was the first filed.
Moreover, in determining whether to dismiss an action in favor of another pending action, the causes of action and the parties in both actions should be the same or substantially the same. Here, the parties came before the court seeking injunctive relief against the employees; settlement negotiations followed which delayed the commencement of the instant New York action; and then the New York and California complaints were filed in close temporal proximity. This case, and not the California case collaterally challenging its merits, should proceed.
(Internal quotations and citations omitted).