Legal Question in Business Law in California

Re: Suing a loan processor in Ca

I can't speak to the specifics of the jurisdiction of Maryland's small-claims courts; every state can limit the reach of its small claims courts as its legislature determines. However, there are usually two issues in bringing an interstate dispute into a particular court, and those are (1) subject-matter jurisdiction and (2) personal jurisdiction.

As to subject-matter jurisdiction, this further subdivides as follows: (a) you would have to determine that the Maryland courts had jurisdiction of the dispute, and if it's a contract case, jurisdiction probably depends upon whether the contract was to be performed in Maryland, was formed there, that a defendant lives there, or possibly that the defendant had substantial contacts with the state, such as an office there or even very active local solicitation of business from Marylanders; also, (b) that the dollar amount of the claim and the type of relief sought is within the jurisdiction of small claims courts in Maryland.

The requirement of personal jurisdiction is met by service of summons on the defendant in a manner recognized under Maryland law.

Your biggest issue is getting Maryland jurisdiction. If your claim is based on a written contract, it may contain a choice of forum clause specifying jurisdiction in California. If so, don't give up; some states including California have laws invalidating forum-selection clauses that would require their citizens to sue somewhere else if but for the clause they could have jurisdiction of their suit in the state of their residence. (In California, it is Code of Civil Procedure section 116.225).