Legal Question in Business Law in New York
breach of contract
My business is being threatenend with a small claims court case. The Plaintiff lives in NY and the business is based in Florida. Will we be required to physically be at the hearing?
3 Answers from Attorneys
Re: breach of contract
If the events described in the complaint took place in New York and there is a basis for service of process then the Small Claims Court has jurisdiction over the business and it will be bound by the decision of the Court. In these circumstances it is recommended that an appearance be made.
Re: breach of contract
For out of state actions, I would generally allow the plaintiff to seek a default judgment against you in New York. Subsequently, the plaintiff must file his judgment in Florida, whereupon you may stay enforcement of such judgment; see FL Civil Practice and Procedure, Chapter 55.509 Stay of enforcement of foreign judgment. A valid ground for staying a judgment is a default in another state because there was no findings on the merits of the action.
Due to the difficulty of travel from one state to the other, this course of action may make sense with an action that is less than $6,000.
Re: breach of contract
To add to what I wrote,
if you have property in the state of New York (bank account, real property, etc.), of course a New York default judgment means that the plaintiff can satisfy his judgment from that property.
Related Questions & Answers
-
LLC member titles I recently filed articles of organization to form two separate... Asked 6/21/08, 8:33 am in United States New York Business Law
-
Lease Issues My family has owned a business for almost 20 years. They are trying to... Asked 6/17/08, 10:49 pm in United States New York Business Law