Legal Question in Real Estate Law in California

Legal Jurisdiction

Myself and 8 other people purchased raw land via a TIC (Tenancy in Common). The L.L.C. governing the deal is based in Colorado. All investors are set up as individual L.L.C.'s based in California. The land purchased is in Georgia. We are seeking legal advice about the way this deal is structured and possibly removing the manager (from the Colorado L.L.C.) What state is going to have legal jurisdiction in this scenario? We want to make sure we seek legal council in the correct state. Any information or suggestions on who to contact to get this information would be greatly appreciated!

Thank You.


Asked on 9/15/08, 1:16 am

1 Answer from Attorneys

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

Re: Legal Jurisdiction

First, the investors would need to check their investment contracts to see whether they contain a jurisdiction and/or choice-of-law clause. These are widely but not always enforceable.

If there is none, proper jurisdiction is probably Colorado if the issues involve management of the LLC. Georgia would have jurisdiction only if the issues involve the real property rather than the LLC.

Jurisdiction in California might be possible if the LLC (or other party to be sued) has substantial contacts with, or operations in, this state.

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Answered on 9/15/08, 12:53 pm


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