Legal Question in Business Law in New York

Re: Suing in New York Small calims court from Texas

You question which court has power to make orders in relation to the dispute -- in other words, jurisdiction. The answer is that jurisdiction potentially lies in the courts of all three states. Obviously, you can go to New York, where your debtor "lives" and the courts will take the dispute. The problem is that is expensive for you. The next place you can go is to Florida, which is where the contract was performed. Depending on Florida law, and whether your debtor has property there, jurisdiction may lie in Florida. This has the cost disadvantage of New York, and, depending on the nature of your debtor's business in Florida, a potential jurisdiction fight. Your last jurisdiction option is Texas. Texas has a statute which allows for the exercise of jurisdiction over non-residents. If the debtor makes a contract with a Texas resident that is performable in whole or in part in the state of Texas, the courts can exercise jurisdiction. In other words, did the New Yorker do anything that might cause him to think he would need to come into Texas courts? There are a number of variables which enter into the maintenance of jurisdiction in Texas, so a review of your paperwork would be needed before coming to a firm conclusion.

The second part of your question involves the structure of Texas courts. Depending on where you (or your company) live and the amount of the debt, you could sue in county court or district court. If your debt is small enough, you could sue in Justice of the Peace court.

Pleading and proving long-arm jurisdiction is an art form, so you probably would be best served by involving a lawyer at least at the pleadings drafting stage.