AboutTimmy Chou Expertise I am a experienced Mediator and a partner in a management consulting firm. As a mediator I work as a third-party neutral and specialize in partnership/shareholder disputes, management/labor issues, company culture difficulties, and family-owned business problems. I can help describe why alternative dispute resolution may be a good choice for you. As an experienced management consultant I may be able to offer creative ideas to help resolve your organizational and business problems and disputes. "If you say conflict, I say opportunity".
Question QUESTION: My business is in PA and I have been served for lawsuit from customer in FL. Do they have to sue me in PA. I am unable to go to Florida for pre-trial.
ANSWER: Thank you for your question!
As I always note to questioners, mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.
I am not a lawyer and cannot give you legal advice, however I can give you my opinion based on my experience.
The venue for any lawsuit depends on WHERE the actionable matter took place. If they are suing you for something you actually performed in PA then the action in FL is improper. However, please note that there is no guarantee that some court in FL would not be sloppy and hear the case. Assuming a case is heard and they get a judgment in FL, execution of the judgment cannot proceed in PA without a hearing of some type where the judgment is "perfected" in PA. My advice is to try to contact the BAR association and get a free consultation with an attorney to determine your actual risk here.
These are some ideas. Feel free to follow up with additional questions.
For your information, the pros and cons of the types of dispute resolution methods follows.
GOOD LUCK!
Arbitration, Mediation, and Litigation
Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system
Benefits of Arbitration:
Confidential, no public record
Limited exchange of documentation, information
Quick, don't have to wait for a court date
Arbitrators have expertise in the subject matter and are trained in conflict resolution
Cheaper than litigation
Preserves business relationships
Negatives of Arbitration
It's a compromise, no 100% winner
Complex arbitration can be costly
If not satisfied, may litigate the arbitration procedure
Poor results with an unskilled arbitrator
Both parties must agree to cooperate in the process
Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.
Benefits of Mediation:
Neutral mediator can objectively suggest alternatives not considered before
Parties are directly engaged in negotiating the settlement
Can be quicker than litigation
Less costly than litigation
Preserves business relationships
85% of American Arbitration Association cases mediated find successful solutions
Negatives of Mediation
may not reach a binding decision
unskilled mediator
Litigation: using the judicial system to resolve disputes
Benefits of litigation:
a clear winner and loser
uses a prescribed set of procedures
more predictable outcomes
is final
Negatives of Litigation:
waiting for court dates can do more harm
usually more expensive than mediation and arbitration
part of the public record
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QUESTION: Thanks for your response...Transaction took place online. Does that put it in any particular jurisdiction.
Thanks
Stan
Answer Good question. Sorry I am clueless on cyber law I'm afraid. My sense is that unless you are required to register in the other state as a foreign corporation, there is really "no one" to sue in Florida. You do not live there, there is no business entity domiciled there. FL courts will not have jurisdiction over entities in another state -- again, unless there are "cyber" provisions in the law I am not familiar with.
I am puzzled that you were actually served papers in another state and how you could be compelled to go to another state. The only precedent I am aware of is a criminal matter, and even then a state has to petition for jurisdiction and permission to exercise legal authority in another state.
Again, better check with counsel and be sure you are OK.
