Legal Question in Business Law in California

This would not be a class action lawsuit. Each of the parties would have separate cases against this individual. You probably would be successful in suing this person. Collection might be a problem, though, unless the person has substantial assets that are nearly lien-free. It would probably be easier to sue in California, as that's where the assets are and the money was loaned. If you were to sue in MI, you then would have to "domesticate" the judgment in California -- which adds an extra step and additional cost.

California is probably the best (and perhaps the only) place you can file suit. And yes, you would be much better off with a lawyer than trying to litigate in pro per, especially since you live so far away.

Do you believe the debtor has enough assets to pay off all of these notes? She is likely to file for bankruptcy protection if she can't afford to pay everyone back.

This case doesn't sound like it should be part of a class action, but I might feel differently if I knew more about it. Class actions usually aren't appropriate when the members of the proposed class have enough at stake to justify litigating separately. Given how much you have at stake, you can justify suing on your own. Some of the other creditors may want to join you as co-plaintiffs, but that would not be enough to justify trying to make this a class action.

Please feel free to contact me directly if you want to discuss your case further.

And, you would want to hire a California attorney that is local to where the case would be filed.

If the promissory note expressly allows you to file the case in Michigan, then you can, and probably should, file it there.

Other than sharing in fees, there wouldn't be any benefit to you to file with multiple plaintiffs or in some sort of class action -- you want to be the first to get a judgment, as the first is the most likely to collect.

You should move fast on this.

If the defendant is in CA, only a CA attorney can file suit here. It would be best to file here, rather than try to fight the difficulties of bringing suit in MI. I'll be happy to discuss with you the issues and facts.

NO, this is not a class action. That is for cases with numerous 'unknown' plaintiffs. A group of similarly situated plaintiffs would simply join in one suit for convenience if they chose to have one attorney handle their cases. Feel free to gather them together and talk to me. Your suit[s] are for breach of agreement[s], and all of each plaintiff's claims against the same defendant must be brought in one suit.

Your real issue and possible problem is in determining whether there are any assets against which you can try to collect if you get a judgment. Does the defendant have anything? Or, is he and the value of the

You'd need an attorney licensed to practice in whichever state had jurisdiction and, if jurisdiction could be had in more than one state, the one you selected. Selection of the defendant's state of residence is easiest - i.e., California. Then comes the related question of venue - which county's Superior Court is appropriate - and the answer is probably the county where the defendant resides or the county where the LLC is headquartered, if it is to be a co-defendant.

Sometimes the selection of jurisdiction and/or applicable law is set forth in the contract or note itself. Such forum-selection and choice of law clauses are generally enforceable, and if Michigan's jurisdiction is specified, that's where you'd want to sue.

Another very important decision is whether to file in a California state court (as assumed above) or in a Federal court (U.S. District Court) in California. Both criteria for getting the case into Federal court under its so-called "diversity jurisdiction" seem to be met -- plaintiff and defendants are in different states, and the amount in question exceeds $75,000. In some respects Federal court might be preferable as they are more businesslike and you might get to trial a lot sooner.

You don't want a class action, even if the number of creditors was great enough and the other class-action criteria were met, because the debtor probably wouldn't have enough assets to pay everyone in full. Your interests are best served by being the first to obtain and enforce a judgment, before the debtor goes broke and files for bankruptcy, or disappears.

If this turns out to be a California matter, I'd be pleased to discuss possible court choices and other matters, without obligation. Contact me directly or visit my Web site, www.bizlaw.ws.

Since the defendant (person who defaulted on the loan(s)) is here in California you would likely want to file in California, unless the promissory notes provide that any lawsuit would be in Michigan.

It sounds like collection following judgment is going to be the biggest problem. You should search now to see what assets the defendant has from which you can possibly collect. Also, if there was any security (assets) pledged in relation to the loan(s) you will want to try to "attach" that as soon as the lawsuit is filed.

You will probably NOT want to make a class action and probably NOT want to tell the other people whose promissory notes have not been paid about the lawsuit. You have a limited pool of money to recover from the defendant. You would like to be able to collect as much of the amount that you are owed as possible.

I would be happy to discuss this matter with you.

Sincerely,

Caleb

[email protected]

To answer your first question, you would be best served by hiring an attorney in California. Not only are they better placed to actually file a lawsuit but the debtor will be much more likely to take any demands from them seriously becuase they know that fact. As to joining with others, while you can't file a "class action" you can certainly join together to sue the debtor. This could be a good idea, as it can result in significant cost savings over each of you suing individually, but could present some problems when it comes to things like settling, etc. There could also be issues of priorities as to your various claims and I would have to know more about the situation before I could comment.

Please feel free to give me a call if you would like some assistance in this matter.

Jon Reich

310.478.2541

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Do you know if the defendant has substantial assets?

Best,

Daniel Bakondi, Esq.

[email protected]

415-450-0424

The Law Office of Daniel Bakondi, APLC

870 Market Street, Suite 1161

San Francisco CA 94102

http://www.danielbakondi.com

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