Legal Question in Business Law in New Jersey

Re: Does my company have to registed as a NJ company in ored to sue the company

I am not admitted in the US so I cannot advise on the law of New Jersey or of any USA jurisdiction. Nevertheless, as an experienced Hong Kong commercial lawyer, I can offer you the following general advice regarding this dispute.

I am aware that there are certain inter-state jurisdictional restrictions among the state courts in the USA which can pose barriers to plaintiffs using the courts to settle disputes.

If the other party is a resident of New Jersey and has no other substantive legal ties to Hong Kong, your company could try to initiate a lawsuit in Hong Kong and simply serve the other party. To do that, you will need to obtain leave of the Hong Kong court to serve process out of the jurisdiction. Getting such leave is usually straightforward provided that your dispute has a legal connection with Hong Kong. It will depend on the exact facts of your dispute. Assuming that you can obtain leave to defend, and assuming that the other party is unable to resist the Hong Kong proceedings, you may be able proceed to judgement and simply enforce the Hong Kong judgement against the other party in New Jersey.

Using this procedure will involve a degree of uncertainty because the other party may try to resist the jurisdiction of the Hong Kong court to try the dispute and/or later try to resist enforcement of any Hong Kong judgement. In my experience, this additional legal wrangling will entail additional legal costs.

Accordingly, if I were you, I would first exhaust the possibilities of suing the other party in its home jurisdiction (New Jersey) before looking at other alternatives such as the one I outlined above. Seek clear, detailed advice from an experienced US lawyer (ideally one who is familiar with New Jersey out-of-state litigation rules). Try to get advice on possible litigation tactics for launching a lawsuit against the other party in New Jersey plus estimates of the legal fees involved. You will then be in a better position to decide whether it would make more sense to start proceedings there or in Hong Kong.

The vast majority (some 90%) of disputes settle before trial. After carrying out your own 'cost-benefit analysis', if you find your company is unable to sue in New Jersey then it might nevertheless be worthwhile to at least initiate proceedings in Hong Kong even if you do not actually intend to assume the expenses of proceeding to trial because often, the fact that a lawsuit has been brought will pressure the defendant into settling before their legal costs begin to escalate.

For questions relating to filing lawsuits in New Jersey you should consult a US-qualified lawyer. Many US law firms have offices in Hong Kong and there are many international firms (including my own!) with US-qualified lawyers in offices there, so you do not necessarily need to directly instruct a lawyer located in North America.

Re: Does my company have to registed as a NJ company in ored to sue the company

Thank you for your inquiry.

If the cause of action arose in the state of New Jersey, you do not need to be a registered business in NJ in order to file a law suit.

As it would be my pleasure to speak to you regarding your potential law suit, please feel free to contact my office at 732 246 0909 to discuss same.

Very truly yours,

Edward R. Weinstein

Re: Does my company have to registed as a NJ company in ored to sue the company

It is required that you have a presence in NJ to sue a NJ based business. This can merely be a foreign corporation registered in NJ (a few hundred dollars to effect the registration). You will be responsible for NJ's corporation business tax, but only on positive income generated in NJ. However, NJ does have a minimum tax, even if corporations are inactive in NJ. This tax is currently $200, but anticipated to raise due to budgetary problems leading to an increase in the minimum tax. Once the suit is completed, you can withdraw from NJ and only be liable for the period you were in NJ. Since this could overlap two tax years, you could be looking at approximately $1,000-$2000 in total costs, plus some filing fees for registration and withdrawal. If the suit involves any substantial amount of money, it is probably worth the costs to pursue it. One final matter, corporations in NJ must be represented by NJ attorneys in any litigation. So you will also be looking at legal fees that will be involved in the suit.

Re: Does my company have to registed as a NJ company in ored to sue the company

I read the other responses to your question, and would understand if you were confused, so I'll add my comments.

You do not need to register as a business in New Jersey (NJ) unless you transact business in NJ. If you ordered product or services from a NJ company, you certainly can file suit in NJ without registering or incorporating in NJ. These regulations are to protect NJ residents from people from outside of NJ who may do business with NJ residents (so NJ residents can sue a party in NJ if they are injured in some way). You can always sue a NJ company in NJ, you do not have to be a resident of NJ or a NJ registered company.

You must have an attorney represent your company though, and it must be an attorney with a bonified NJ office. Depending upon why you are suing them, I would be happy to help you locate an atty with the right background to help you. You can call me at 732-525-8200, or write or e-mail me at the addresses below.