Legal Question in Business Law in California

Sued out of state?

I ended a relationship with a vendor I used because I got them overcharging and double billing. They fired the person that was doing this but didnt reimburse me any money. Needless to say I contested the charges on my credit card bill and the credit card company ruled in my favor. They are now suing me in washington state where there headquarters are saying I owe them $6,500 plus all there legal fees. I dealt with there local wharehouse in San Jose California and never dealt with there washington office. They say I signed my rights away by signing a ''customer contact sheet''. I filled out the ''customer contact sheet'' 3 years ago which asked for my business name, authorized buyers, and proper licsening. Thats was it. However in fine print below the signature it says any disputes well be handled in washington state. I don't owe them money, in fact reviews of our files show they owe us money. But we can't afford to travel to washington state to fight this! Shouldn't this matter be heard where these disputes took place? Thanks for any advice.


Asked on 1/08/09, 4:35 pm

3 Answers from Attorneys

Edward Hoffman Law Offices of Edward A. Hoffman

Re: Sued out of state?

The courts in both California and Washington would ordinarily have jurisdiction over a dispute like this, but it seems you already submitted to the jurisdiction of the Washington courts. California courts will generally uphold agreements like this one.

You should consult with a Washington attorney asap. You may not need to travel there anytime soon, and may even be able to avoid the need to go there altogether. However, if you don't get a lawyer up there working on your behalf soon, the company will be able to get a default judgment -- including attorney fees -- against your firm. It will then be able to enforce the judgment in California.

Good luck.

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Answered on 1/08/09, 5:23 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Sued out of state?

I agree with Mr. Hoffman, and would like to add a few points:

One of the first things you should find out is how Washington law requires a lawsuit to be served on an out-of-state defendant.

Asking the question again on LawGuru but indicating that Washington law applies might get you responses from our Washington lawyers, maybe one willing to handle your defense.

It seems as though you should win the case. In California, if a contract requires one party to a contract to pay legal fees of the other upon prevailing, then the fee clause automatically applies vice-versa, should the other party prevail. I do not know if legal-fee payment clauses are automatically reciprocal in Washington also, but you should ask.

Finally, in California certain fine-print clauses unexpectedly altering a party's rights are sometimes illegal and uneforceable - these are often called "contracts of adhesion" and you might keep that in mind, at least as an interesting sidelight, but it's probably not worth while to challenge WA jurisdiction on that basis.

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Answered on 1/08/09, 7:40 pm
Terry A. Nelson Nelson & Lawless

Re: Sued out of state?

Yes, it probably should be heard here, but to get it here, you'll have to appear in court where it is now, filing appropriate objections and seeking to have it transferred. Hire a local attorney to do so.

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Answered on 1/08/09, 8:22 pm


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