Legal Question in International Law in New York

Hello,

I am a legal consultant for a bone marrow donor center. We are a non-profit 501(c)(3) corporation based in New York. However, we were incorporated in DC, and our "parent" company is in Germany. We are in negotiation with a German-based transport company. We would like any legal disputes to be settled under German jurisdiction and would like this reflected in our contract with them. Is this even possible if we are a U.S. corporationincorporated in the U.S.? If so, does a "choice of law" clause need to be included in the contract? And, are there any other legal hurdles I should be aware of?


Asked on 9/14/11, 9:26 am

2 Answers from Attorneys

SHAHRIAR KASHANIAN LAW OFFICES OF SHAHRIAR KASHANIAN, ESQ.,

You should be cognizant of the ramifications of choosing either jurisdiction as your choice of laws; for instance, expediency, protection, incorporation, viability, etc. You should contact both an American and a German attorney for simple questions. You may include choice of laws and jurisdiction in your contract, however, it must be agreeable to both parties and I doubt a German Company will agree to be bound by US court jurisdiction and/or decision based on its activities in Germany.

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Answered on 9/14/11, 9:49 am
Roman Fichman Esq. Law Practice of Roman Fichman Esq.

Generally speaking, if you choose to fall under German law then it is your prerogative. Be mindful that having such a clause in the contract means that the center will likely give up a lot of its rights in the U.S. I assume the intention is for the German parent company to deal with any potential disputes. If this is the case then you should consider an indemnification agreement between the parent and the subsidiary and a relevant notice clause in the contract at hand.

In addition, you have incorporated in D.C., however since you are physically based in New York the center should register as a foreign company in New York State.

Furthermore, I'm not sure what your position as a legal consultant entails, but if you are giving legal advise to the center and you are not admitted as an attorney, then you may be practicing law without a license. You and the center should seek the advise of an attorney in this matter.

Feel free to contact my office at your earliest convenience.


Roman R. Fichman, Esq.

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Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.

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Answered on 9/14/11, 10:32 am


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