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Kat House Productions, LLC v. Paul

NEW YORK SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT


March 25, 2010

KAT HOUSE PRODUCTIONS, LLC DOING BUSINESS AS SURF CHICK, ET AL., PLAINTIFFS-APPELLANTS,
v.
PAUL, HASTINGS, JANOFSKY & WALKER, LLP, DEFENDANT-RESPONDENT.

Order, Supreme Court, New York County (Louis B. York, J.), entered April 13, 2009, which granted defendant's motion to dismiss the complaint, unanimously affirmed, without costs.

Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.

This opinion is uncorrected and subject to revision before publication in the Official Reports.

Tom, J.P., Andrias, Sweeny, Nardelli, Renwick, JJ.

106781/08

When a nonresident sues in New York's courts on a cause of action accruing outside the state, our "borrowing statute" (CPLR 202) requires that the cause of action be timely under the limitation periods of both New York and the jurisdiction where the claim arose (see Global Fin. Corp. v Triarc Corp., 93 NY2d 525, 528 [1999]). Generally, a tort action accrues "at the time and in the place of the injury," and "[w]hen an alleged injury is purely economic, the place of injury usually is where the plaintiff resides and sustains the economic impact of the loss" (id. at 529).

Applying these principles, it is clear that plaintiffs' legal malpractice claim accrued in California, where their residences and principal place of business were located and the alleged economic injury was sustained, at the latest, in March 2006. Under that state's applicable one-year statute of limitations (Cal Civ Proc Code § 340.6), this action, commenced in November 2007, was time-barred.

We have considered plaintiffs' remaining arguments and find them unavailing.

THIS CONSTITUTES THE DECISION AND ORDER OF THE SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.

20100325

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