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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118635
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Re: A DE "INC" which owns a DE LLC which is

Customer Question

Re: A DE "INC" which owns a DE LLC which is registered and operating in NJ...The DE INC does have a registered agent in DE, but the main operations are located in NJ. IF a lawsuit does arise can the jurisdiction be moved to NJ as that is the main location of operations negating the original purpose of protection?
Submitted: 1 year ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Jurisdiction is proper where the LLC is incorporated or where they are licensed to do business. So if you are registered in DE and licensed in NJ, they can sue you in either location (unless you have a contract with a choice of jurisdiction/forum clause). If they sue you in DE, you would have to move the court about getting jurisdiction changed and would have to fight it there unless the action took place in NJ and you can argue "forum non-conveniens" in that all records, witnesses and evidence would be in NJ, making that the best place for the suit.
Customer: replied 1 year ago.
In other words...
1. The DE LLC registered and doing business in NJ.
2. NJ Contract/job specifies courts in DE hold jurisdiction.
3. LLC in NJ gets sued for XYZ. Would the proceeding take place in DE(As per contract) or in NJ as per ""forum non-conveniens" ?
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
It would have to take place under what you just said above in DE, since the contract says DE. If you want it in NJ, you need to modify your contracts to say NJ.