Ask Me Help Desk - Which State do I file small claim? Client in CA me in Maine have not been paid.

I am a web developer living in Maine.
I made a web site for a client who lives in California.
We have exchanged written agreement on the work and payment and both have signed the paper
Through fax.
I have finished my work and the client has not paid. I want to file through small claims but am not sure
Which State I should file it at.
It would be great if I could file this in my State so I would not have to travel across the country.
Thank you in advance.

I see no specific prohibition in the Maine small claims rules, the Maine District Court portion of the Maine Code, or elsewhere which specifically says you can't file in Maine. I would ask the clerk of court, point blank, whether you can do it and insist upon a citation to a rule or statute, if you are told no.

Here is another helpful site.

I find this concerning jurisdiction:

You can file where the basis for the lawsuit arose;... where the defendant has a place of business; or
If the defendant is a business entity, where the registered agent of the business resides.

Maine Judicial Branch: Small Claims Guide: Where to File the Case

Question for AKLawyer - if it's an internet transaction does it, in fact, originate in either State? I can't find anything that clarifies the question and there are more and more internet transactions. It would seem that the various Small Claims Courts are going to have to address this question.

Thank you for your reply. It was not for a business. It was a personal website that he said he might use for business. So the agreement was in his name and not a company name.
Would it effect anything if I filed it in Maine (my State) and if the defendant asks to transfer just change the place?
I'm not sure about the court dismissing the case? If it is dismissed do I just have to file it again in California?
Thank you

The "rules" appear to say that you can file in the State where the transaction (basis for the lawsuit) arose and that is Maine. I am in NY and small claims lawsuits cannot be transferred. They can be dismissed and you would have to file in California.

I don't see that the Defendant has grounds to request a transfer to California. He can argue that suing him in Maine puts him at a disadvantage but filing in California puts you at a disadvantage. The Court would have to decide.

My only other thought (and I'm sure this has now crossed your mind) is that the venue if you have to sue must be spelled out in your agreement.

Quote:

Originally Posted by JudyKayTee

...
Question for AKLawyer - if it's an internet transaction does it, in fact, originate in either State? I can't find anything that clarifies the question and there are more and more internet transactions. It would seem that the various Small Claims Courts are going to have to address this question.

Yes. "Where the basis for the lawsuit arose" doesn't really directly answer the question, does it? But I believe the courts have sketched out the general contours. It has to do with the proper application of each state's "long arm statute", and the principle of "minimal contacts" as set forth in the seminal cases of Pennoyer v. Neff and International Shoe Co. v. Washington. I found what appears to be an excellent treatise on this subject by Googling "Long Arm Statute", but it is a PDF file, and I can't find a link to post here.

Anyway, it cites the Maine "long arm statute", as Maine statute 14-704-A. That statute says, in pertinent part, that

"1. Declaration of purpose. It is declared, as a matter of legislative determination, that the public interest demands that the State provide its citizens with an effective means of redress against nonresident persons who, through certain significant minimal contacts with this State, incur obligations to citizens entitled to the state's protection. This legislative action is deemed necessary because of technological progress which has substantially increased the flow of commerce between the several states resulting in increased interaction between persons of this State and persons of other states.

This section, to insure maximum protection to citizens of this State, shall be applied so as to assert jurisdiction over nonresident defendants to the fullest extent permitted by the due process clause of the United States Constitution, 14th amendment.

2. Causes of action. Any person, whether or not a citizen or resident of this State, who in person or through an agent does any of the acts hereinafter enumerated in this section, thereby submits such person, and, if an individual, his personal representative, to the jurisdiction of the courts of this State as to any cause of action arising from the doing of any of such acts:

A. The transaction of any business within this State;
...
I. Maintain any other relation to the State or to persons or property which affords a basis for the exercise of jurisdiction by the courts of this State consistent with the Constitution of the United States.
..."

Quote:

Originally Posted by lllsmilelll

Thank you for your reply. It was not for a business. It was a personal website that he said he might use for business. So the agreement was in his name and not a company name.
Would it effect anything if I filed it in Maine (my State) and if the defendant asks to transfer just change the place?

When it says "business", it refers to your business. And your customer was "doing business" with your business (as I would argue, in Maine), whether it was for his own "business". If, for example, I go into the store and buy something, I am "doing business" with that store, although I myself might not be "in business".

I believe the courts would find that if you spoke to him during an interstate telephone call, and he agreed in that call to pay you for doing the work, the contract was established, in a manner of speaking, in Maine (as well as in California). Now if when all phonecalls, e-mails, texting, etc. you were not in Maine, there might be room to argue that there weren't the required "minimal contacts". Can I correctly assume you were in Maine when these calls (or whatever, including the fax transmission of the contract) were made?

At this point, you should also be thinking about how you are going to collect the judgment, assuming you get it in Maine. Presumably the defendant doesn't have any property in Maine, so you might need to register it in California anyway, and seek to collect it there.

Thank you both for your replies. I am thinking even if I did win I would probably need to hire a collecting company? To get my money from him. So would that mean I should just file the claim in CA and have the California collecting company handle the money? I'm sorry I am new to this and I'm even thinking maybe it's not even worth the money and time. I just don't want him doing the same thing to other developers and I think he intentionally hired me because I was from the East Coast so it would be a hassle...

Quote:

Originally Posted by lllsmilelll

Thank you both for your replies. I am thinking even if I did win I would probably need to hire a collecting company? To get my money from him. So would that mean I should just file the claim in CA and have the California collecting company handle the money? I'm sorry I am new to this and I'm even thinking maybe it's not even worth the money and time. I just don't want him doing the same thing to other developers and I think he intentionally hired me because I was from the East Coast so it would be a hassle... .

I don't know that you will find a collection agency to take it. It's my impression that they only take multiple account customers (credit cards, etc.). But it certainly wouldn't hurt to ask around.

You could file the small claim case in California and inquire about the possibility of attending the hearing by telephone. Or you could file a case in California, elect not to go small claims, and perhaps prevail by default or on motion practice. In either case, if you prevail, then your next step would be to collect the judgment; a process which also can be done by oneself, if you believe jumping through all the hoops is worth the hassle.