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.


Asked on 8/06/02, 2:15 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

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.

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Answered on 8/12/02, 3:27 pm

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.

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Answered on 8/06/02, 10:17 pm


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