Legal Question in Business Law in California

California resident suing canadian company

A California resident entered into a contract with a Canadian corp to purchase a product that the Cdn corp sells. The goods were picked up by the California resident in Canada from Cdn Corp. One year later the California resident calls the Cdn Corp saying that the goods are defective. Thru discussion it is found that that the product is missing important components which the Cdn corp then sends to California to be installed. The installation of these components caused interference with work that that had been done after the installation of the CDn corps product. The California resident is now suing the Cdn Corp in California for rework bills plus unspecified damages. The Cdn corp has no assets in California. Since the product was purchased and picked up in Canada (BC) does Cdn/BC law only apply? If the Cdn Corp does nothing about the California lawsuit is that an admission of guilt? What has to be proven in a suit where the California citizen says the critical components weren't originally supplied and the Cdn corp will assert that they were supplied but removed after?

I realize this may not be enough info but any help would be greatly apprieciated.

Thanks


Asked on 8/29/06, 11:26 am

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: California resident suing canadian company

This is an old law school question. It deals with the "minimum contacts" that the Canadian company had with California, to determine whether it could be sued here. Did it advertise here? How did the CA resident find out about the product? Was the agreement entered into in California? Is it a product specifically marketed to CA residents? CA law might apply depending on the answers. If the CA resident obtains judgment, then he/she could try to collect in Canada. Of course, the company could appeal, saying the CA court had no jurisdiction. Then the CA resident would have to hire appellate counsel.

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Answered on 8/29/06, 11:32 am


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