As reported by Law.com, Eastern District Judge Arthur D. Spatt has ruled that the Central Islip federal court has personal jurisdiction over Boss Media, effectively winning the right for Susanne Uebler to sue the Swedish company.
Susanne Uebler, who in January 2001 won $1 million in an online gambling promotion and received only $77,000, sued Boss claiming that it controlled the online gambling activities of CyberCroupier, the Caribbean-based casino which welshed on its promise to award her a $1 million prize.
Boss Media said it had nothing to do with running the contest and that CyberCroupier was merely a licensee, and filed a motion to dismiss based on the claim that the court lacked personal jurisdiction.
Judge Spatt noted the presence of WebDollar, a New York-based agent which processed online financial transactions for Boss, and applied New York\’s “long-arm statute” to the diversity action.
Spatt said that, when deciding whether to exercise jurisdiction over a foreign parent company based on the in-state activities of its subsidiaries, the subsidiary must function as either an “agent” or a “mere department” of the parent.
An important factor for the court in ruling on the issue of personal jurisdiction was the fact that Boss Media, in its 2002 annual report, listed WebDollar as a division.
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