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McBRIDE v. KPMG INTERNATIONAL

650632/09, -101615/09, -101616/09, 650633/09, -16707, 16706, 16704, 16703, 16702

135 A.D.3d 576 (2016)

24 N.Y.S.3d 257

2016 NY Slip Op 00306

DONNA M. McBRIDE, Individually and Derivatively on Behalf of BEACON ASSOCIATES LLC II, Appellant, v. KPMG INTERNATIONAL et al., Respondents, et al., Defendants. JAY WEXLER, Individually and Derivatively on Behalf of RYE SELECT BROAD MARKET PRIME FUND, L.P., Appellant, v. KPMG LLP, et al., Defendants, and KPMG UK et al., Respondents. DANIEL RYAN et al., Appellants, v. FRIEHLING & HOROWITZ, P.C., et al., Defendants, and KPMG UK et al., Respondents. MATTHEW GREENBERG et al., Appellants, v. FRIEHLING & HOROWITZ, PC., et al., Defendants, and KPMG UK et al., Respondents.

Appellate Division of the Supreme Court of New York, First Department.

Decided January 19, 2016.

The motion court correctly found that New York lacks personal jurisdiction over KPMG UK pursuant to CPLR 302 (a) (3) (ii). While plaintiffs allege that KPMG UK committed a tort outside the state (negligently auditing nonparty Madoff Securities International, Ltd. [MSIL] in the United Kingdom), and their causes of action arise out of that tort, KPMG UK's act did not cause injury to a person or property within the state. "[T]he situs of commercial injury is where the original...

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