"So if I file in my state how does the defendant receive notice in another state?
*** You file in your state and follow your states 'rules' for serving an out-of-state defendant.
"And if they don't challange the court jurisdiction and it goes forward , when you say the out-of state court ruling would have no impact on them exactly what does that mean?"
*** It means exactly that. Your state actions (judgment, enforcement, discovery process, etc.) simply has no meaning once it goes across state lines. Simply, the defendant can ignore ANYTHING that your state court (or you) send or order to him.
"If I don't sue them in their state, I get nothing?"
*** Pretty much. You will get a judgment that cannot be enforced as presumably, the defendant (now judgment debtor) has no assets in YOUR state. The only way that you can gain access to any assets he has in his state is to:
- Sue him in his state and get the judgment there, or
- Domesticate your out-of-state (foreign) judgment into his state court system. At a minimum, this will require getting a certified judgment from YOUR court, then sending it to an appropriate court in HIS state (with a new filing fee) and noticing him of your actions. He can then file a motion to challenge your process and force you to come to his state for a hearing.
Bottom line.... if you probably have to go to his state anyway (in the domestication), simply file your original suit there and get rid of all the other 'foreign' court issues.
For more on this process (the UFMJRA), go to:
http://www.law.upenn.edu/bll/ulc/fnact99/1920_69/ufmjra62.pdf