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Sueing out of state or another country

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instantcashbiz

Junior Member
What is the name of your state?
Tennessee

If someone from Tennessee wanted to sue someone out of state, or in another country, for the amount of, i.e. $2,000, would the court proceeding (I'm not sure if this is the right term) take place where the plaintiff resides, or where the defendant resides? This is regarding an internet transaction by the way.

Thanks in advance.
 


badapple40

Senior Member
You are raising thorny issues of, among other things:

1. proper venue
and
2. personal jurisdiction (governed by your state's long arm statute and the constitution)

You need to let us know a lot more about this transaction, including, but not limited to, whether you were the buyer or seller, whether, at the time of the transaction, the other party knew where you were located, where and how the payments occurred for whatever product was purchased, what type of product was purchased, how the product was shipped and from where and to where the product was shipped, and anything else involving this transaction.
 

instantcashbiz

Junior Member
Thank you for responding. This is a very complicated case and involves thousands of consumers in the U.S., Canada, and many other Countries. I don't know if it CAN be answered on a forum such as this, but I thought I would attempt to ask.

Note: The individual transactions in the explaination below average around $5,000 U.S. dollars or less, hence the posting under "Small Claims Court".

Here is an overview:

The seller is an internet payment processor similar to Paypal based in Tennessee.

The buyers are as mentioned above, based in many countries.

The buyers had purchased "advertising" from a number of different online businesses, via the payment processor. In other words, the buyers funded their accounts with the payment processor and then transferred money to the online merchants to pay for services. (Advertising).

Days or weeks later, the online businesses who received money from the buyers for advertising services, had their accounts frozen by the payment processor to the tune of an estimated $50+ million dollars collectively. The reason given was that these businesses were allegedly operating illegal ponzi or pyramid schemes. Note: the payment processor in question (under a DBA) was ironically issued a cease and desist order itself by the State of Tennessee in 2003 for operating a ponzi/pyramid scheme.

Since the freezing of accounts occured, the Tennessee BBB has received over 800 official complaints from buyers against the payment processor in question. The Attorney General, Consumer Affairs, and the FBI have also received numerous complaints, and have begun an investigation. (They are also investigating one of the companies whose funds were frozen).

So now the reason for this post. Of the estimated 250,000+ consumers (buyers) involved, hundreds, or possibly thousands have done chargebacks with their credit card companies to retrieve the funds they lost, that are now frozen. The reason stated by most was "services not rendered".

In the Terms of Service on the payment processor's website, it clearly states that credit card chargebacks may be considered fraud, and legal action may be taken aginst individuals who do chargebacks against. Obviously under normal circumstances this would be true, but this is clearly not a normal circumstance. However ...

Back to my original question: if the payment processor decides to exercise their right (if they are still in business after investigations) to proceed with legal action against these hundreds of thousands of individuals (buyers), would they (the PP) need to file their legal claims against each buyer in their respective State/Country, or would these need to be filed in a Tennessee court where the payment processor resides?

Thanks in advance.
 

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