Legal Question in Business Law in California

Can I sue a Co in LA even though

I signed a contract with a Co in LA

I did all my business with this Co in LA

However in the contract I signed it states that if any legal action was taken that it would have to be done in New York

I left the Co within the 90 day period of the contract

I paid them up front for all expenses

Now they are presenting me with an invoice that is GROSSLY inaccurate stating that I owe them $9000.00 above and beyond what I already paid them

They are charging me for a show I did NOT attend in New York and was under no obligation to attend as well

A charge of $3150.00

I have emails explicitly telling them I was NOT going to attend this show

Yet they charged me anyway

They charged me for five months rent at $1000.00 per month even though I left the CO with in the 90 day period

I have this in writing AND pre paid them for the 3 months rent (90 days) per the contract

This Co will not correct this invoice I have repeatedly asked them to and they just will not respond

All the sales I did make thru this CO

is to be paid to them

because of this inaccurate accounting on their part all my PROFIT will be swallowed up by them

Can sue them in LA as I did all my business with them in LA and signed the contract in LA


Asked on 8/02/08, 5:59 pm

3 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Can I sue a Co in LA even though

Contracts determine the rights of the parties; that is what they are for. You agreed to the terms when you signed. However, you could try filing here, and fighting dismissal or 'removal' to NY courts based upon your facts. No one is going to guarantee you that would succeed, but it might be worth trying. The co might just hire a local attorney to deal with the case here, since the amounts in question are not that high. Small claims court here goes up to $7500. Over that, you probably should hire an attorney to file in Superior Court. Feel free to contact me if you decide to do so and want to hire counsel.

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Answered on 8/03/08, 7:32 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Can I sue a Co in LA even though

Read The Friendly Contract. If the contract says New York, and you were over 18 when you signed it, get a lawyer in New York and sue them in New York.

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Answered on 8/02/08, 6:01 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Can I sue a Co in LA even though

The language in a contract by which the parties agree that jurisdiction of disputes shall be in a particular state is called a "forum selection clause." A clause specifying that the contract shall be interpreted and enforced according to the laws of a particular state is called a "choice of law" clause.

Both types of clauses are regularly upheld and enforced. There are rare exceptions, where the clause(s) are found to be exceedingly unfair, contrary to public or judicial policy, etc., but attempting to swim upstream against a forum-selection clause would require you to hire a bunch of expensive lawyers to write several expensive motions to resist the other side's insistence that you cannot sue it except in New York, and in the long run you'd probably fail.

Here's the scenario: you file your suit in L.A, County Superior Court, and somehow serve the company. Next thing you know, you'll be served with a "motion to quash service of process" requiring you to appear at a hearing where the company's hired-for-the-purpose lawyer will point out to the California judge that the contract you signed gives jurisdiction to the New York courts. After looking at the papers, the judge will say "Motion Granted, Case Dismissed."

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Answered on 8/03/08, 1:01 am


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