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Sued in Another State? What Florida-Based Businesses Need to Know About Out-of-State Litigation

For Florida-based businesses, being sued is disruptive enough—but being sued in another state can raise the stakes significantly. Suddenly, you’re navigating unfamiliar laws, distant courtrooms, and increased legal costs. Whether you’re a small business owner or a corporate executive, understanding how out-of-state litigation works is essential to protecting your interests and minimizing exposure.

With South Florida’s role as a hub for commerce, logistics, real estate, and global trade, many companies have operations or partnerships that extend well beyond the state line. That reach, however, can open the door to legal disputes in other jurisdictions.

Here’s what your business needs to know if it faces a lawsuit outside Florida.

Jurisdiction: Can They Sue You There?

The first question to ask is whether the other state even has the legal authority to hear the case. This is a matter of personal jurisdiction—does your company have sufficient contact with the state filing the suit?

Factors that may establish jurisdiction include:

• Having customers or clients in that state
• Maintaining a physical office or employees there
• Conducting regular business or marketing in the state
• Signing contracts that specify that jurisdiction

If none of those apply, your legal team may be able to file a motion to dismiss for lack of jurisdiction. However, success depends on the specifics of your business relationship with the plaintiff and the facts of the case.

Venue and Forum Selection Clauses

Did your contract specify where disputes must be litigated? Many agreements include forum selection clauses, which predetermine the location (and sometimes the court) where any dispute will be resolved. If a valid clause exists naming Florida as the venue, your counsel may be able to enforce that and move the case.

On the flip side, if your contract gives the other party the right to sue elsewhere—or if you didn’t specify—you’re likely stuck with the out-of-state venue.

Legal and Financial Implications

Out-of-state litigation is usually more expensive. You’ll need to:

• Retain local counsel in the state where the lawsuit is filed
• Coordinate with your Florida attorneys for strategy and internal records
• Cover travel and lodging for depositions or court appearances
• Possibly deal with unfamiliar procedural rules or state-specific legal doctrines

In some cases, the differences in state law could even change the strength or weakness of your case.

Responding Strategically

If your business is served with an out-of-state complaint, the clock starts ticking—often just 20 to 30 days to respond. Here’s how to react:

1. Notify your Florida litigation counsel immediately. Even if they don’t handle the case themselves, they can connect you with trusted co-counsel in the other jurisdiction and help shape your defense.
2. Assess the business relationship at the heart of the case. Were there terms in the contract you can enforce in Florida? Is there an arbitration clause?
3. Evaluate potential settlement or jurisdictional challenges early. If defending the case in another state is cost-prohibitive, negotiating quickly may be your best option.

Proactive Prevention for Florida Businesses

You can’t always prevent legal action in another state, but you can reduce the likelihood:

• Include Florida venue and jurisdiction clauses in contracts
• Avoid vague or missing dispute resolution terms
• Maintain records showing where business activities occurred
• Consult with litigation counsel when expanding out-of-state

Why It Matters More in South Florida

South Florida companies frequently engage in interstate and international commerce. If your business operates across state lines—or plans to—it’s wise to consider the litigation risks that come with that reach.

At Conrad & Scherer, we represent Florida businesses in high-stakes litigation across the country. With deep experience in cross-jurisdictional disputes, we help clients evaluate jurisdictional issues, respond effectively, and protect their business interests—wherever litigation may arise.