What to Know About Bringing Suit Against a Foreign Company

Suing an out-of-state company in a Florida court involves navigating jurisdictional rules and procedural complexities, but it also offers several strategic advantages for Florida plaintiffs. Local litigation minimizes travel expenses and procedural hurdles. It eliminates the need to hire an attorney licensed in another state and allows access to local attorneys familiar with Florida laws, witnesses, and evidence, which simplifies case preparation. Furthermore, Florida juries may be more sympathetic to residents or businesses harmed within the state, and local judges and jurors are likely to have a better understanding of circumstances affecting Florida businesses.

Before a Florida court can hear a case involving an out-of-state company, jurisdictional requirements must be satisfied. The court can exercise jurisdiction only if the defendant has established “minimum contacts” with Florida. Minimum contacts are present when a company conducts substantial business in Florida, such that the company should reasonably anticipate possibly being brought to court in the state. Examples include maintaining a physical presence such as offices, warehouses, or retail locations. Additionally, actively marketing products or services to Florida residents, advertising within the state, or entering into contracts with Florida businesses can establish the requisite contacts. The key consideration is whether the company has purposefully availed itself of the privilege of conducting activities in Florida, thus invoking the benefits and protections of Florida law.

Several procedural challenges can arise when suing an out-of-state defendant in Florida:

1. Service of process — Serving legal documents on an out-of-state company must comply with specific Florida procedures. Depending on the defendant’s location, options include certified mail, using a process server in the company’s home state, or utilizing interstate agreements such as the Uniform Interstate Depositions and Discovery Act (UIDDA). Ensuring proper service is crucial; failure to follow the correct procedures can delay the case or result in dismissal.
2. Jurisdictional challenges — The defendant may contest Florida’s jurisdiction, arguing that its contacts with the state are insufficient. If successful, this could lead to dismissal of the case. Additionally, the defense may attempt to remove the case to federal court if the parties are from different states and the amount in controversy exceeds $75,000. Litigating in federal court involves distinct procedural rules that can increase complexity and costs.
3. Venue issues — Identifying the appropriate venue within Florida is essential. Venue is typically determined by the location where the contract was executed or where the harm occurred. In cases involving companies that operate in multiple locations, choosing the proper venue ensures the case proceeds smoothly.
4. Enforcing judgments — Even if a plaintiff prevails in a Florida court, collecting a judgment from an out-of-state company may pose difficulties. Enforcing the judgment requires registering it in the defendant’s home state and adhering to that state’s procedures for collection, which can be time-consuming and complex.

Working with a Florida business litigation attorney familiar with these challenges is vital for successful pursuit of litigation against an out-of-state company. An experienced lawyer can provide strategic guidance on jurisdictional issues, effective service of process, and enforcement of judgments. 

The Law Office of H. Clay Parker, Esq., in Orlando, specializes in business litigation involving out-of-state defendants and offers comprehensive legal support to protect your interests. Call our firm at [ln::Phone] or contact us online to schedule a consultation.