Default on contract in U.S.....

David34

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Mar 3, 2007
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What are the legal ramifications if a company in D.R. defaults on a contract to sell a commodity to a company in the U.S.? The value of said commodity is well north of $25,000US.

Rgds,
David
 
Feb 7, 2007
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What is the contract venue? Under which laws was the contract signed? If it is DR you must sue in DR.... good luck!

If it is US, you can sue in the federal court, respective for the district of the venue in the contract. If no venue was selected, the district court for the location of the company has jurisdiction. You may not sue in the state or local court, as they have no jurisdiction.

Federal Rules of Civil Procedure outline in what case you can sue foreign company in the USA. Note that court will decide if it has a jurisdiction after the lawsuit is filed. Also, you will need to serve the DR company with the lawsuit within 90 days or the suit is not valid. The srevice can be provided by ANY person attesting it has served the papers (that's good).
 

David34

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Mar 3, 2007
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The contract is a U.S. contract to deliver goods F.O.B. D.R. I need a good business lawyer. Can you recommend one? The venue will be Nagua - thanks
 
Feb 7, 2007
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You misunderstood me.

Venue means which country;s alws apply.

The contract shoudl have a provision, by which laws it is governed.

It is usually written in the "Governing Law" section of the contract.

This is an example:

GOVERNING LAW, JURISDICTION, AND VENUE
This Contract shall be governed by, and construed in accordance with, the laws of the State of California. The Contractor agrees and consents to the exclusive jurisdiction of the courts of the State of California for all purposes regarding this Contract and further agrees and consents that venue of any action brought hereunder shall be exclusively in the County of Los Angeles.
 
Feb 7, 2007
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You can file a lawsuit against the DR company in the US District Court for the Eastern district of New York if the amount in question is over 75.000 dollars. If less, state court has jurisdiction.
Federal court may be involved, if the federal court determines that it has jurisdiction to hear the case. The jurisdiction issues are detailed by title 28 of the US Code.

28 USC 1332 states:

(a) The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between--
(1) citizens of different States;
(2) citizens of a State and citizens or subjects of a foreign state;


You may also have subject matter jurisdiction in front of the US Court of International Trade.


Anyway, consult your lawyer as I am not a lawyer.
 
Feb 7, 2007
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Another thing to consider:

Even if you file a lawsuit, and the court accepts to hear the case, AND you are able to serve the plaintiff in the DR with Complaint (lawsuit) papers,

AND they can either respond and defend the case, or not respond, in which case they would be in default and the judge could issue a summary judgment in your favor awarding you monetary compensation,

THEN you need to find a way to collect. You would need to locate the properties of the company in the USA (such as bank accounts or other property) because having the US judgement exectuded in DR might prove difficult, if it is not a high profile case.
 

EMTuKnowMe

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Nov 15, 2006
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its 150k, not 75k anymore

You can file a lawsuit against the DR company in the US District Court for the Eastern district of New York if the amount in question is over 75.000 dollars. If less, state court has jurisdiction.
Federal court may be involved, if the federal court determines that it has jurisdiction to hear the case. The jurisdiction issues are detailed by title 28 of the US Code.

28 USC 1332 states:

(a) The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between--
(1) citizens of different States;
(2) citizens of a State and citizens or subjects of a foreign state;


You may also have subject matter jurisdiction in front of the US Court of International Trade.


Anyway, consult your lawyer as I am not a lawyer.


Federal jurisdition is now amounts over 150k. anything under is subject to mandatory arbitration. At least that is the rules in the Southern and Eastern districts of new york.

In any event, I would be happy to recommend to you some attorneys here in NY that might be able to help you. None of them are cheap. But PM me if you need the info and i will get right back to you. good luck.

-rich (EMTuKnowMe)