Bensusan Restaurant Corp. v. King

Nature of the Case

This was an appeal from a dismissal for lack of jurisdiction.

Facts

King (D) operated a club under the name of Blue Note in Columbia, Missouri. Bensusan Restaurant Corporation (P) operated a successful jazz club in New York City called the Blue Note which was registered as a federal trademark for cabaret services.

In 1993, Bensusan wrote to King demanding that he cease and desist from calling his club the Blue Note. King responded with a note informing Bensusan that it had no legal right to make such a demand. King heard nothing from Bensusan until it created a website in 1996.

Bensusan sued King under the Lanham Act, the Federal Trademark Dilution Act, and common law unfair competition. Bensusan sought an injunction against King’s use of the name Blue Note. The district court dismissed the complaint and Bensusan appealed.

Issue

In order to determine jurisdiction over an out of state defendant must the court first look to the long arm statute of the forum state?

Holding and Rule of Law

Yes. In order to determine jurisdiction over an out of state defendant the court must first look to the long arm statute of the forum state.

New York’s statute provides that personal jurisdiction may be exercised over a nondomiciliary who commits a tortious act without the state causing injury inside the state but only if the tortfeasor would expect or reasonably expect the tortious act to have consequences in the state in addition derive substantial revenue from interstate commerce. Bensusan has not established the prerequisites to this jurisdiction as the evidence presented in not adequate to prove substantial revenue. King’s operation falls within the exception to this long arm statute because his business was local to Missouri.

Disposition

Affirmed.