Legal Question in Business Law in California
Suing a NY company in CA small claims court
My consulting company has been doing some work for
a NY company for the past year. They owe us $2000 in
back monthly payments and after saying they would
send a check right over they have decided they do not
want to pay. Can I take them to CA small claims court
and if I receive a judgement against them is it any good
since they are located in NY? The work agreement was
signed by us in CA and by them in NY and no
guarentee of performance was made. The work
originated in CA.
2 Answers from Attorneys
Re: Suing a NY company in CA small claims court
Your ability to get California small-claims jurisdiction over a New York corporation depends upon being able to serve the NY corporation here. There are exceptions, but apparently not applicable to your situation. Inability to serve the business in California is likely an obstacle to using California courts, unless the corporation has a registered agent for service of process here. Check with the Secretary of State's Web site.
As for collecting a judgment, similar considerations apply. If they have assets in California, you have leverage; otherwise, you probably would have to enforce your California judgment in New York, which may be financially impractical.
Re: Suing a NY company in CA small claims court
I am admitted to practice in NY and CA, so I can give you an objective answer. You probably can sue in either State, but you will save several procedural steps if you sue in NY.
A judgment in one State is good in any other State, but it must be registered as a "foreign" (out of State) judgment before it can be enforced there.
OTOH, they may be more likely to fight your suit if it is brought in NY.
Related Questions & Answers
-
Paid for Item online through ebay, never received item. I paid $1040.00 for a... Asked 7/25/02, 1:39 pm in United States California Business Law