District Judge John F. Keenan

 

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Los Angeles-resident defendant is New York-resident plaintiff’s cousin. In 2004 they bought certain commercial property in Los Angeles (Premises) as joint tenants and equal partners. In March 2004 defendant formed Golden Star LLC under California law. The parties became equal members of Golden Star. In July 2004 they transferred ownership of the Premises to Golden Star. The Property’s 2014 sale for $1.75 million netted $1.123 million, and ended Golden Star’s business, entitling plaintiff to half its assets, $561,660. Asserting breach of fiduciary duty and conversion, plaintiff sought to recover a $91,660 shortfall and demanded an accounting of Golden Star’s revenues and assets. The court denied dismissal. Defendant availed himself of the privilege of doing business in New York when he traveled to plaintiff’s place of business to persuade him to invest in the Premises, and thereafter communicated with plaintiff to discuss their joint business Golden Star. Plaintiff also made a prima facie showing his causes of action arose from defendant’s transaction of business in New York. However, balance of the convenience of parties and witnesses, and the interest of justice required the action’s transfer to the Central District of California, the locus of operative facts.

District Judge John F. Keenan

 

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Los Angeles-resident defendant is New York-resident plaintiff’s cousin. In 2004 they bought certain commercial property in Los Angeles (Premises) as joint tenants and equal partners. In March 2004 defendant formed Golden Star LLC under California law. The parties became equal members of Golden Star. In July 2004 they transferred ownership of the Premises to Golden Star. The Property’s 2014 sale for $1.75 million netted $1.123 million, and ended Golden Star’s business, entitling plaintiff to half its assets, $561,660. Asserting breach of fiduciary duty and conversion, plaintiff sought to recover a $91,660 shortfall and demanded an accounting of Golden Star’s revenues and assets. The court denied dismissal. Defendant availed himself of the privilege of doing business in New York when he traveled to plaintiff’s place of business to persuade him to invest in the Premises, and thereafter communicated with plaintiff to discuss their joint business Golden Star. Plaintiff also made a prima facie showing his causes of action arose from defendant’s transaction of business in New York . However, balance of the convenience of parties and witnesses, and the interest of justice required the action’s transfer to the Central District of California, the locus of operative facts.