Legal Question in Business Law in California

Re: jurisdiction over Illinois vending company

You were injured in California, so go ahead and file here. By the way, just because your damages are less than $5,000 does not mean you *must* file in small claims court. You may want to talk with an attorney about representing you in Municipal Court.

Re: Illinois vending co. fraud on Californian

Yes, you can file in California as Mr. Walton has said. You call the company's actions fraudulent, but you will not prevail on fraud unless you can prove (by clear and convincing evidence) that the company intended not to live up to the bargain at the time it made the deal.

As to damages, the fact that you actually received the machines means you can sue only for the income you lost due to the delay, the missing candy and the failure to provide you with locations, plus any consequential and punitive damages you can get for fraud. You will have to persuade the court that you know how much you could have expected to earn had the company given you a location -- mere speculation won't do.

Small claims courts are not well-suited to such arguments. I echo Mr. Walton's suggestion that you consult an attorney about proceeding in the Municipal Court instead (or, if you feel you can prove damages in excess of $25,000.00 including lost income, maybe even in the Superior Court).

Re: Illinois vending co.

This is a tough one to answer based on the information you've given.

First, you can only sue for a maximum of $5,000.00 in California small claims court.

Next you need to be sure that you can get jurisidiction over the corporation here in California. If the Illinois corporation is either:

� registered to do business as a foreign corporation in California; or

� conducts enough business in California that the court will consider it equitable to impose California jurisdiction,

chances are you'll be able to file here.

However, there are several issues to consider. If the contract has a provision calling for litigation of any disputes in Illinois, you may have a problem. If the corporation doesn't have an agent for service of process in California, you may have a problem getting the corporation properly served. The small claims court will likely be very leery of proceeding if the defendant corporation doesn't appear, and there's a question of service.

Also, if you do receive a judgment, unless you can prove the existence of corporate assets here, you'll likely have to get some help in Illinois collecting on what's called a sister-state judgment.

You may find it more to your benefit to contact counsel in Illinois and determine whether the corporations actions render it liable for punitive damages. If so, it might be worthwhile to file an action there.

Also, remember that you'd be required to return the machines as a prerequisite to getting a judgment for your entire investment. Otherwise you'd be limited to the damages caused by the corporations failure to forward the inventory and make good on their promise of providing good locales for the machines

I've just brushed the surface. There are unfortunately, some fairly complex issues involved in all this. I hope this gets you moving in the right direction.

The foregoing information is provided as an accommodation only, and does not constitute legal advice or a legal opinion based on a comprehensive review of all relevant facts, nor can provision of such information be construed as creating an

attorney-client relationship.

Re: Illinois vending co. commits

The rule in contract cases is you can sue where the contract was entered into or where it was to be performed but many small claims clerks do not understand this an will often refuse to file a case with an out of state defendant

Re: Illinois Case

The answer is yes you can sue here in California.

One of the basis for jurisdiction is where the contract

is to be performed which is California. The other

attorney's who have answered your question either left

a very complex answer or a very simple one. I would

suggest that you file in Municipal Court not small claims.

There are many advantages to filing in Municipal Court. You

can sue for up to $25,000 and you can serve the out-of-state defendant

by certified mail. You can file in pro per so you

do not need an attorney, but I would suggest hiring one

to prepare and file the documents for you and help

you out with discovery and the other aspects of Municipal

court proceedings. I would be happy to give you a

free consultation over the phone and help you to ascertain

if Municipal Court is the right venue for your case and

to help you determine what kind of recovery you are entitled

to. You might be able to get a full refund with just a letter

from an attorney's office threatening a lawsuit. I can

be reached at (805) 546-9918 or you can email me with

a number you can be reached at and I would be happy to

contact you at your convenience. I look forward to hearing

from you.