Legal Question in International Law in California

Jurisdiction in international trade is a very complicated issue, and turns on far more than where an email server is located. That is why most companies engaged in international transactions use fairly sophisticated contracts that specify jurisdiction and venue, as well as choice of law and sometimes provide for international arbitration rather than dispute court jurisdiction. Without knowing the details about a particular allegedly fraudulent transaction, it is impossible to give a valid opinion on where jurisdiction would lie for a legal action arising out of the transaction.

In theory, if a foreign entity is using the internet or other forms of communication to commit fraud on a California purchaser, then under our state's long arm statute, the California courts will have jurisdiction over a person or business located outside the state. The problems are practical ones: how do you find the person or business in order to serve them with a complaint and even if you obtain a judgment, the defendant may not have assets that can be readily seized to satisfy the judgment. It is not impossible, however, to go after foreign entities. You can also, in some cases, go after other defendants in the distribution chain, including internet providers. I personally think the day of mandated arbitration clauses in contracts which render dispute resolution essentially illusory and which severely disadvantages a purchaser are coming to an end.