Legal Question in Business Law in New York

Re: Which State should I file the law suit?

If you are doing business in NY, and the defendant is in Atlanta, then make him come to NY. That would make more likely his agreeing to a settlement on your terms.

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Re: Which State should I file the law suit?

You raise an interesting question of jurisdiction. There is no doubt that a Georgia court would have jurisdiction over the Atlanta-based defendant. The question is whether either or both of California and New York courts would also have such jurisdiction.

Questions such as these turn on a number of factors, all aimed at determining the number and types of contacts the Atlanta-based defendant had with the state in question. Thus, did the defendant register to do business in the state at issue (either or both of California or NY); does the defendant have an office in either jurisdiction; does the defendant regularly conduct business in either state; and questions of similar ilk.

If you sue in NY or CA and the jurisdictional question is "iffy," then you can expect to see a motion to dismiss the lawsuit for lack of jurisdiction or, the defendant will not show up at all and, instead, will seek to quash any judgment issued against it when you try to enforce the judgment in Atlanta. You will avoid these problems by filing suit in the company's own backyard, i.e., Atlanta.