Legal Question in Business Law in California

I am a resident in San Francisco, California. I am planning to file a small claim case against a timeshare exchange company that not only cancelled my membership, but has also cancelled my future reservation without refunding me anything. This exchange company�s corporate office is in New Jersey. In its membership terms and conditions, it talked about Governing Law being the laws of State of New Jersey, and the Jurisdiction which "Member consents and waives Member�s objection to the non-exclusive personal jurisdiction of and venue in the New Jersey state." However, I found that this company is a subsidiary to a corporation that is registered to do business in California. In addition, this exchange company also has local office with representatives in a timeshare resort in Carlsbad, California. Below are my questions:

1. Can I file the small claim in California, specifically in San Francisco where I lived and signed the contract?

2. If yes, where should I send the small claim to? New Jersey, its parent company (the corporate company address listed in the California Business Portal), or the local office in Carlsbad, CA?

3. I have sent in a demand letter over a month ago to the New Jersey office. Do I need to send another demand letter to the local office in Carlsbad, or its parent company if I am sending the small claim documents to them instead?

Any advice is greatly appreciated.


Asked on 10/19/09, 12:18 pm

1 Answer from Attorneys

Delilah Knox Rios Delilah Knox Rios, Attorney At Law, APLC

If the contract was signed in California, one of the places a suit can be brought is California. Although it seems backward, when you signed the agreement you agreed to New Jersey having jurisdiction, not just over the case -but over you personally "personal jurisdiction". As to the demand letter, read your agreement again. I think you will find that there is a mediation or arbitration option or requirement. This might just be the best option for you, because it is usually cheaper and quicker.

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Answered on 10/21/09, 8:15 pm


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