Promissory Note

[Fantine]

What is the name of your state (only U.S. law)? District of Columbia

I am the creditor on a promissory note between me (resident of District of Columbia), while the debtor lives in another state. The note states that it is to be governed by the laws of the District of Columbia. Is that enough for me to file in Small Claims Court in DC or do I have to file where the debtor lives (luckily, I have his address). Thanks.

 

[latigo]

Answering your question of whether or not the choice of forum designation in the promissory in itself gives the D.C. courts personal jurisdiction over the maker of the note, the answer is no. It would not alone confer such personal jurisdiction.

In other words, without more contact within the District, the mere statement in the note that the laws of D. C. shall govern it is not enough to confer personal jurisdiction.

The consequence being that if you were to attempt to domestic a D. C. judgment in a foreign state and the judgment debtor contests the D.C. courts jurisdiction, the judgment would not be entitled to full faith and credit.

Such was the ruling in the United Supreme Court case of Burger King Corp. v. Rudzewicz, 471 U.S. 462, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985). Quoting:

“Nothing in our cases, however, suggests that a choice-of-law provision should be ignored in considering whether a defendant has "purposefully invoked the benefits and protections of a State's laws" for jurisdictional purposes. Although such a provision standing alone would be insufficient to confer jurisdiction, we believe that, when combined with the 20-year interdependent relationship Rudzewicz established with Burger King's Miami headquarters, it reinforced his deliberate affiliation with the forum State and the reasonable foreseeability of possible litigation there. “