Question about verbal contract and personal jurisdiction

[Fluxcapacitor]

A person in Texas is trying to sue me (I live in Colorado) over the amount of $2,000 for a breach of contract, in which there was no written or official contract, everything was verbal and also very vague. I do web development work on their eCommerce website and am an individual/independent contractor. What am I likely to expect in regard to personal jurisdiction? They are claiming I would have to go to Texas to appear in court. Will a judge even take a case which is small claims with someone who resides out of state and in which there was no written contract?

 

[army judge]

A person in Texas is trying to sue me (I live in Colorado) over the amount of $2,000 for a breach of contract, in which there was no written or official contract, everything was verbal and also very vague. I do web development work on their eCommerce website and am an individual/independent contractor. What am I likely to expect in regard to personal jurisdiction? They are claiming I would have to go to Texas to appear in court. Will a judge even take a case which is small claims with someone who resides out of state and in which there was no written contract?

You can ignore the empty threats of a small claims court case for a lousy two grand presided over by a Texas Justice of the Peace even being able to serve a citizen of Colorado.

If you're smart, not to worry, as long as you don't panic.

As you suspect, personal jurisdiction is the power of a court over the parties in the case.

Long before a court can exercise power over parties, our constitution requires that the party have certain minimum contacts with the forum in which the court sits. International Shoe v Washington, 326 US 310 (1945).

As you've discerned, you have no contacts with the forum in which a Texas Justice of the Peace sits.

If you're smart, simply cease all communications with the angry former customer.

 

[Michael Wechsler]

A couple of legal issues, most of which army judge has mentioned.

1. choice of forum. Typically in a contract written by an attorney, you'll see a legal clause called a "choice of forum" which means that both parties agree as to the jurisdiction of a certain court or courts. For example, it will say that the parties agree to subject themselves to the jurisdiction of the courts in the state of Texas. Usually the choice of forum clause will also state that the forum is exclusive and that a certain county in the state will be the location of the courts that will have jurisdiction. Without a choice of forum clause, jurisdiction is questionable, as army judge has mentioned about having "minimum contacts" with the state that you are being hailed into court. And typically that means the minimum amount of contact required by law for it reasonable for a person or party to be brought into court - not having a minimum contact with the state, such as a single contract with a person to deliver one item.

2. Other than small claims courts, civil courts are costly. Small claims courts typically require that the defendant be present within the county of the small claims court, which means there will be an address for the defendant on the small claims court form. As you probably don't have any residence or address within the county in Texas, it would seem there is no jurisdiction over you for a lawsuit to be brought in small claims court.

3. People will make all sorts of threats when they are trying to get people to pay them money. They also have a tendency to greatly misrepresent the law in order to scare another person into paying them for fear of a lawsuit. Happens all the time. Good luck with your case.

A person in Texas is trying to sue me (I live in Colorado) over the amount of $2,000 for a breach of contract, in which there was no written or official contract, everything was verbal and also very vague. I do web development work on their eCommerce website and am an individual/independent contractor. What am I likely to expect in regard to personal jurisdiction? They are claiming I would have to go to Texas to appear in court. Will a judge even take a case which is small claims with someone who resides out of state and in which there was no written contract?

 

[army judge]

One very important point I failed to mention earlier, fluxcapacitor is where the defendant must be served and sued.

In Texas small claims lawsuits, the defendant must be sued in county, precinct, and place where he or she resides, or his or her business is located.

You can, if the lawsuit materializes, defend service as improper. Why? You don't reside in Texas, and therefore can't be served in a Texas county, place, and precinct.