Legal Question in Business Law in Arizona

Re: Jurisdiction re. lawsuit against my corporation

You might also want to see the California case of Hall v. Laronde, 56 Cal.App. 4th 1342 (1997).

http://login.findlaw.com/scripts/callaw?dest=ca/caapp4th/56/1342.html

Re: Jurisdiction re. lawsuit against my corporation

You can be sued in Arizona if you have substantial contacts with this state. If you own property here, and the suit involves that property, if you are doing business here, if you entered into a contract here, if you are soliciting business here and have a contract that by its nature lends itself to enforcement here, if most of the facts, witnesses, evidence etc. are in Arizona, etc., then Arizona may have jurisdiction. It is up to the court to decide that, depending upon the facts of your case.

If you are sued here, you must defend, and at least move to challenge the jurisdiction of the court. If small claims, it might be better to try to resolve or settle the claim. A company cannot represent itself through its officers in court, it must use an attorney. Individuals can represent themselves, but cannot represent a company unless they are attorneys.

If you want to discuss representation in a free, no obligation initial conference (can be by phone) call 480.835.1500.

best regards,

James D. Jenkins

Re: Jurisdiction re. lawsuit against my corporation

I'd say that if the Arizona company was managing real property for you, and the real property is in Arizona, the Arizona state courts will have jurisdiction.

Furthermore, if your LLC were not registered to do business in Arizona, you may be impaired in your right to defend the suit until you pay any franchise taxes Arizona is due. Can't say this for sure, but if the tables were turned and the suit was to be in California against an Arizona LLC, California might deny the Arizona LLC the right to defend the suit unless the taxes were paid.

By the way, it's not the company that has (or lacks) jurisdiction; it's the court. (Technical point).