Arizona business owners know that when a client is upset the situation can get complicated. The jilted client may sue not only the company as a whole, but individual employees as well. However, some employees live in areas other than where the lawsuit is being filed and the person filing the lawsuit must find a way to establish jurisdiction.
One company found a roundabout way to sue an executive, but he later got dismissed from the business dispute.
Maps inDeed signed a $450,000 contract with Northeast Revenue Service to perform services. Northeast Revenue Service works with municipalities as a tax collector, while Maps inDeed accesses property using satellite imagery. Northeast Revenue Service claims that Maps indeed never performed any of the services outlined in the contract.
Northeast Revenue Service is based out of Pennsylvania, so the company filed a lawsuit in that state and sought to sue one of the executives, who lives in Missouri. In order to establish jurisdiction, the company used an in-house lawyer who declared to the judge that the executive was related to a similar company, InSequence. The lawyer alleged that through this company, the executive had personal agents in Pennsylvania.
The judge was not persuaded by the lawyer’s conclusions and struck down his declaration. The information the lawyer presented to the judge was based on hearsay and he did not have enough solid evidence to form his opinions and base his conclusion.
A breach of contract is a messy situation. It can lead to extreme emotions, characterized by a lot of anger and blame. Communication is key to preventing these types of situations.
Source: The Legal Intelligencer, “Tech Exec Gets Out of Business Dispute Case” Saranac Hale Spencer, May 5, 2015
Call Cook & Price, PLC today at 480-407-4440 or email us through this website.