Legal Question in Business Law in California

question about business law

citizen 1 is from one state and wants to file a suit against citizen 2 from another state. where can citizen 1 file the case. this is not a federal dispute. what additional information is needed?


Asked on 3/19/08, 2:05 pm

3 Answers from Attorneys

Robert F. Cohen Law Office of Robert F. Cohen

Re: question about business law

It depends on the nature and value of the claim, where the contract (if that's what it is) was entered into, where the accident occurred, etc., and whether the prospective defendant availed himself/herself of California's jurisdiction. Too many "ifs" to give you a specific answer.

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Answered on 3/19/08, 2:17 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: question about business law

Federal courts will hear two kinds of cases: (1) Federal question cases, where questions of Federal law are controlling; and (2) cases based on diversity of citizenship. Diversity jurisdition requires that every plaintiff be from a different state than every defendant AND that the amount in controversy by more than $75,000.

If you don't want to or can't get the case into Federal court, you have to accept a state court system. Determining proper jurisdiction is not always easy and indeed jurisdiction may be proper in more than one state. Here are some very general guidelines to determining proper jurisdiction:

1. In a contract case, the state where ths contract itself specifies.

2. The state where the contract was formed, or where it was to be performed.

3. If the suit is for negligence or another tort, the state where the tort occurred or the accident happened.

4. The state where a defendant resides.

5. If the defendant is a corporation, jurisdiction is proper in the state of incorporation OR the state where the corporation either has its largest concentration of activity or its true headquarters. For example, if an Illinois steel company incorporates for convenience in Delaware it can be sued in state court in either Illinois or Delaware.

This is only for starters to give you some ideas; there are many more limitations and intricacies including general and specific jurisdiction, subject-matter vs. personal jurisdiction, jurisdication vs. venue, and so on. Law students spend months on jurisdiction and venue in law school.

To make matters even more complicated, the jurisdiction question does not always dispose of the applicable law question, There are instances where, for example, a Texas court has jurisdiction and the case is tried there, but the court must apply Arkansas law to resolve the case.

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Answered on 3/19/08, 4:04 pm
Terry A. Nelson Nelson & Lawless

Re: question about business law

You can file in the state where the contract and performance were based, or where the defendant resides. Now, if that is in SoCal, feel free to contact me for the legal help you'll need doing so.

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Answered on 3/19/08, 6:06 pm


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