Legal Question in Business Law in Florida
Internet legal jurisdiction?
I purchased an auction site for $5000 from a company in Florida. They were fairly new in setting up people to have their own auction site. A written contract was signed in 01/2001. The company was to work with us in developing our auction site to our specifications. They made verbal promisis as to modifications to our web page. They never completed the project. We reside in California.
Question: What state do I file a law suit for breach of contract? and,what is the statue of limitations to file?
We would like to engage an attorney to advise us on our rights. Thank you.
6 Answers from Attorneys
Re: Internet legal jurisdiction?
Your statute to file a breach of written contract is four years. However, there is an issue as to the juridsiction you entered into the contract. If the contract was prepared by the Florida company, there may be a clause which identifies Flordia as the venue, as well as Flordia law controlling. If this is the case, you may need to contact an attorney in Florida. If you have any further questions, please contact our office.
Re: Internet legal jurisdiction?
As you might imagine, the law in this area is still developing and is by no means settled. Nevertheless, relevant factors to the jurisdiction analysis will include whether the Florida company contacted you first (or vice versa), where and how the negotiations took place and the language/intent of the contract (written or verbal).
Please call or e-mail if you would like a free consultation. We have experience with business, contract and technology issues, including representation of internet auction businesses.
Re: Internet legal jurisdiction?
Does the contract have a forum selection or a choice of law clause? The written contract will often determine where suit must be filed. If the contract does not specify, then the question turns to where the contract was executed and where it was intended to be performed.
If California law applies, then a written contract has a six year statute of limitations.
You might also take a look at Hall v. LaRonde (1997) 56 Cal.App.4th 1342.
Feel free to contact me to discuss this further.
http://www.timothywalton.com
Re: Internet legal jurisdiction?
Factors that might affect your ability to obtain jurisdiction in one state or another may include the frequency and extent of the defendant's contacts with the prospective forum state, where the contract was negotiated and signed, where the contract was to be performed, where one or more of the individual defendants (if any) reside(s) or resided at the time of execution, and to some extent the so-called 'long arm' jurisdiction statutes of the state. The US Constitution and federal laws allow jurisdiction wherever the defendant could reasonably have expected to be haled into court. Some states require a bit more.
Also, the language of the contract may affect jurisdiction, e.g. s clause making the contract interpreted and/or enforceable under California law may imply consent to jurisdiction here.
In addition to getting jurisdiction, you will have to serve the summons and complaint on the defendant(s) in a permissible manner.
The California statute of limitations for written contracts is four years, and it starts not when the contract is written, but when the alleged breach occurs. There are exceptions and some tricks in calculating the time.
Unless you suing on principle, your loss would have to be a lot greater that $5,000 to make suit an economic proposition for you.
Re: Internet legal jurisdiction?
NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney�s individualized advice for you. By reading the �Response� to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.
RESPONSE: Based on the limited facts that you have supplied it appears as though (1) the county in which the company resides in Florida will have jurisdiction over the case because it is where the breach occurred and it is where the defendant resides. (2) The law which will be applied by the court will be the place where the contract was finally entered into. So if the contract was finally entered into in California then the court will apply California's law (unless the parties otherwise stipulate). If the if the contract was finally entered into in Florida then the court will apply Florida's law.
Should you need further assistance, you may contact my offices directly at (305) 769-3000.
Yours truly,
Randall L. Gilbert, Esq.
Re: Internet legal jurisdiction?
I looked at some of the other responses from the attorneys and I guess they didn't answer the question. However, there really is not a great answer - to be safe, file in Florida and hope that the defendant still is operating, has assets, etc. If they don't exist, don't even file it. It would be a waste of good money for bad. The reason it is safer to file in Florida is for the many reasons already given by the other attorneys - Florida is where the defendant resides and, as a result, the defendant cannot try to dismiss because the court in Florida (in the proper county where it is located) has personal jurisdiction over the defendant.
Therein lies the difficulty with filing in California. Unless you can show contacts by the defendant in California, and not simply your emailed each other or made some phone calls, etc., then the defendant could dismiss the matter filed in CA because there is no personal jurisdiction over the defendant in CA. However, this is all subject to the contract you entered (where exectued, does it have a provision for jurisdiction, etc.).
Best of luck. I hope the defendant still exists and you are successful in any event.
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