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A company/individual enters into a contract with another…

A company/individual enters into...

A company/individual enters into a contract with another company/individual in State A, both doing business/living in State A. One of the parties to the contract defaults on the contract and subsequently moves to State B. The state law in State A reads that jurisdiction of such matters exists only in the place where the civil tort occurred, e.g., if both parties did business/resided in Manhattan, KS and the contract was entered into in that same place, the case could not be tried in Kansas City, KS. One party moves operations/residence to State B, irrespective of the contract. Can the party in State A sue the party that has moved through the State B civil courts (assuming this is not a federal matter).

Lawyer's Assistant: Because laws vary from place to place, can you tell me what state this is in?

State A = California State B = Nevada

Lawyer's Assistant: Has anything been filed or reported?

Yes, in Nevada.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

One party does business in several states, including Nevada.

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Answered in 6 minutes by:
1/17/2018
ScottyMacEsq
ScottyMacEsq, Attorney
Category: Legal
Satisfied Customers: 17,684
Experience: Licensed Texas General Practice Attorney
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Thank you for using JustAnswer.

I'm sorry to hear about your situation. Assuming that the contract is silent as to jurisdiction over the case (what's called a "forum selection clause") then jurisdiction over such a case would be proper in Nevada, where the person currently resides, as the person has "general contacts" that would be proper under the US Constitution. Nevada has the broadest form of "long arm jurisdiction statute" (a law that determines what types of cases can be brought in state courts) that essentially says if it's okay under the US Constitution, it's okay under state law. And for the US Constitution, you can sue someone in the state that they reside, even if nothing else happened in that state. It would be legal and proper to sue in Nevada.

Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable.

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Customer reply replied 1 month ago
if the contract states that applicable law resides in a third state, Utah?

Generally a choice of law will be enforceable, as both parties clearly agreed to that and subjected themselves to the jurisdiction of that state. Note that if both parties consent to one state (such as Nevada) then they will have waived that portion of the contract.

ScottyMacEsq
ScottyMacEsq, Attorney
Category: Legal
Satisfied Customers: 17,684
Experience: Licensed Texas General Practice Attorney
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DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

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