Re: retrieving money owed
The question may require answering separately with respect to different legal concepts or issues.
First, with respect to where a lawsuit would be conducted, the issue is jurisdiction. You may be able to get jurisdiction of the matter in either Texas or California, depending upon the closeness of connection (nexus) of the parties and the subject matter of the contract to either state. In other words, a state's courts often can assert jurisdiction over a matter if the defendant lives there, the contract was negotiated and signed there, OR the work was done (or was supposed to be done) there. Your facts may support a suit in either state (can't say for sure, however).
If you can get jurisdiction in ither state, you should choose the state where it will be less expensive for you (atending trial, deposing witnesses, etc.) or where state law favors you (the latter not usually too important).
You need a lawyer licensed to practice in the state selected (or permissible) for trial.
If assets or parties affected by a judgment are out of state, you will probably need local legal assistance to carry out sister-state enforcement of the judgment.
I hope this answers your question.
