Legal Question in Business Law in California
California has bad check law and so do other states. Which state bad check law do I use if a consumer from out-of-state writes me a check that bounces? California law or the defendant's state?
1 Answer from Attorneys
I assume you are talking about a civil action and not a criminal complaint. There are two jurisdiction issues: subject-matter jurisdiction, i.e., what court has the power to hear the case and render a judgment; and personal jurisdiction (relating to service of process on the defendant).
California would have subject-matter jurisdiction because the statute (Civil Code section 1719) places liability on a person who delivers a bad check as well as one who writes a bad check, and the check is probably deemed delivered when you open the envelope in which it was mailed.
The state where it was written likely has a law placing liability on the writer for the act of writing a bad check. If so, your civil suit could be brought in either state.
There are additional issues connected with obtaining personal jurisdiction, especially if you planned to use a small claims action; you may have to effect service of process within California.
I'd obtain and read the entire text of Civil Code section 1719. It is a bit lengthy.