In today's Freedom Friday blog and email newsletter, I want to talk about a topic that comes up frequently with my litigation clients, both those who are facing lawsuits, and also with those where they are suing other businesses, etc., and that's where can their small business be sued.  Equally important is the flip side of this question, which is where can I sue this other business that breached my contract or owes my company money.  In today's Freedom Friday blog and email newsletter, I'm answering the question, “Where can my small business be sued?”  And I am also answering the question, “Where can my small business sue another small business?”

At Liberty Legal Solutions, LLC, I see a lot of business disputes, both in the pre-dispute phase, where a demand letter is sent (or received by my office), and then in the litigation phase where suit is actually filed, either by my client, or by whoever is suing my client.  When a business is sued, something that is very important is called “venue,” and Oklahoma has a whole set of statutes regarding venue.  This is the way we decide whether or not suit has been properly filed in the right county.  There are several parts of the venue statutes that are relevant, so here are some different places where your small business can be sued:

1.  In Your Home County

The first place where your small business can be sued is in your home county.  This means that if you have an Oklahoma LLC or Oklahoma corporation, and your principal place of business is in a certain county (your home county), then that's the county in which you can be sued.  For example, if your principal place of business is in Tulsa, Oklahoma, then you can be sued in the Tulsa County District Court.  Also, if your Oklahoma LLC or corporation doesn't have a principal place of business, then your small business can be sued in the county in which it is “situated,” which means that it can be sued in the county where your registered agent is located.  For example, if you have a regional or national business, and your principal place of business is in Texas, but you have formed an Oklahoma LLC with a registered agent in Edmond, Oklahoma, then the Oklahoma County District Court may be a proper venue, as well.

2.  In Another County, Maybe

A second place where your small business can be sued is *maybe* in another county, even if its not your home county.  There's a couple of possibilities here.  If you're operating as an Oklahoma LLC or corporation, your small business can be sued “where the cause of action or some part thereof arose,” which means you can be sued where the contract was signed if it is a breach of contract lawsuit.  Also, if the contract itself specifies a certain venue, then that is the venue that typically controls under Oklahoma law.  Of course, there are exceptions, but if you sign a contract that has a venue clause, you will likely sued in that county, even if you are NOT an Oklahoma LLC or corporation.

3.  In the Plaintiff's Home County

A third place where you might be sued, if you are an LLC or corporation which is not formed under Oklahoma law (this means a LLC or corporation formed under a different state law, such as Missouri or Texas), is that you can be sued in the plaintiff's home county.  If there are minimum contacts with the State of Oklahoma, venue may be proper in the home county of the plaintiff's home county.  For example, if the only defendant in the case is a Texas LLC, and the home county of the plaintiff is Tulsa County, Oklahoma, then Tulsa County may be an appropriate venue for the case.  Also, if there is more than one defendant, and one of the defendants is a resident of the State of Oklahoma, then venue may be proper in the county where the co-defendant resides.  For example, if you have six (6) defendants, and two of them live in Lawton, Oklahoma (which is in Comanche County), but the other four (4) live in other states, like Kentucky and New York, then Comanche County may be a proper venue.

Thinking about starting a small business?  Or maybe your small business is having issues with contracts, leases, business partners, collection issues, or experiencing other barriers to growth?  Please contact me at [email protected] to schedule a FREE strategy session.

For more information about Liberty Legal Solutions, LLC, please visit our website at http://www.libertylegalok.com/