Tauza v. Susquehanna Coal Co.
New York Court of Appeals
220 N.Y. 259, 115 N.E. 915 (1917)
- Written by Steven Pacht, JD
Facts
The Susquehanna Coal Company (Susquehanna) (defendant) was incorporated in Pennsylvania. Susquehanna’s main office was in Pennsylvania, but Susquehanna maintained a branch office in New York. Susquehanna’s New York office was overseen by a sales agent who supervised eight salesmen and additional clerical employees. Through the New York office, Susquehanna systematically and regularly solicited and obtained orders from customers based in New York, to which Susquehanna continuously shipped coal from Susquehanna’s coal yards in Pennsylvania. However, Susquehanna’s New York sales agents could not confirm sales orders; that had to be done by Susquehanna’s Pennsylvania headquarters. The Pennsylvania office also received all customer payments. George Tauza (plaintiff) sued Susquehanna in New York state court regarding an issue that was unrelated to the business Susquehanna transacted in New York. Susquehanna argued that New York courts did not have personal jurisdiction over it with respect to Tauza’s suit.
Rule of Law
Issue
Holding and Reasoning (Cardozo, J.)
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