Jurisdiction question--Do they have personal jurisdiction?

[mrw142]

What is the name of your state? Minnesota

I have a friend who runs a consulting business. His business has its only office in Minnesota. He was approached by some investors from South Dakota to do some consulting work. They came to him in Minnesota, thereafter they exchanged some emails. My client never went to South Dakota nor signed any contract stating that disputes would be handled in South Dakota or that South Dakota laws would govern. The deal went bad, and now the guys from South Dakota are trying to file suit against my client there. This guy never even set foot in that jursidiction, nor did he sell products or anything there. They came to him. He thinks it should be filed against him in Minnesota, I agree.

What do you think, legal eagles?

 

[racer72]

Your friend has a very good defense, now he needs to use it.

 

[mrw142]

Thanks for the advice, Racer72. So you mean, I take it, that they wouldn't have jurisdiction over him? (Probably a silly question, as that seems to be your obvious answer).

So you race, if I take your handle properly? What do you race there in Washington state?

 

[weenor]

Based on what you have posted there would be no subject matter jurisdiction. However, once suit is filed your friend must assert that defense through a motion to dismiss. He should not just sit on his hands not answer the complaint.

 

[splainthisone]

Would this be considered a frivilous lawsuit if filed in the wrong court?

 

[racer72]

Would this be considered a frivilous lawsuit if filed in the wrong court?

No. It is a legitimate lawsuit. Just file in the wrong court.

 

[tranquility]

I'm not sure about if there is subject matter jurisdiction, as the specific court would need to be listed. What does the complaint allege? It is possible there is a subject matter jurisdiction issue here, but if the court does not have power to hear a case, the ability to first claim that is always present--even if at the appellate level.. Personal jurisdiction is the issue where you must tread carefully.

The personal jurisdiction issue can be treated in a couple of ways. First is to ignore the summons. Then, when they try to collect on the default judgment, you argue the full faith and credit should not be given to it because it was entered by a court without jurisdiction. The problem is that personal jurisdiction can be very fact sensitive and once you go this route you can never go back and argue your case. If you lose the jurisdictional issue--you are SOL.

Check the statutes in the state you are going to if you want to answer or apear. Federally, and in most states, an appearance or answer can be done without penalty and you can list the defense of lack of personal jurisdiction. However, some states require a "special appearance" in this situtation where you only argue the jurisdictional issue. If you raise other issues, you are put at risk of having made a general appearance and consenting to jurisdiction.

Arguing jurisdiction is fancy law. Get a lawyer to help you.

 

[Quaere]

Your friend needs to find an atty. that is licensed in both MN and SD and ask which of the two states provides the best forum for the defendant. He may very well be better off having the claim heard in SD.

If he decides he doesn’t want to go to SD, THEN he can ask whether or not the state has personal jurisdiction over him.

The Defendant did not need to set foot or any other body part in South Dakota. Nor did he need to have an office there in order for the state to have personal jurisdiction over him.

Personal jurisdiction will depend upon the details of the transaction that was taking place, whether or not he has ever done any other business in SD, where he advertises his business, whether anyone in SD acted as an agent for him, and other factors too numerous to name.

The type of claim that was filed can also be a factor. You have not given us enough information, nor can you give enough information in this type of setting, for anyone to advise you on such a complicated issue.

Good luck!