Leonard, TX asked in Consumer Law and Contracts for Texas

Q: We are sued in MO I need a general denial form and form to change jurisdiction to Texas our company is in TX,

the contract with client states that she can only bring suit in Teas but we need to answer this law suit before we get a judgment I do not where I can find these forms

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1 Lawyer Answer
John Michael Frick
John Michael Frick
Answered
  • Frisco, TX
  • Licensed in Texas

A: A company can only appear in legal proceedings through a licensed attorney. You don't need a form; your company needs a Missouri attorney to represent it in the lawsuit filed against it in Missouri. Even if you were to present a form, unless you are a licensed Missouri attorney, it likely would be ineffective to protect your company and preserve its rights.

While a mandatory forum selection clause is often enforced, there are a variety of possible defenses that can be raised to enforcement. With respect to consumer contracts in particular, many states have specific rules as to both content and as to conspicuousness. For example, some require the clause to be in ALL CAPS and at least 12- or 14- point font and on the same page as the consumer's signature.

There are also constitutional defenses to a forum selection clause. Parties usually can choose one particular state as the forum for a resolution of a dispute among two or more states with personal jurisdiction over the parties. A state can exercise personal jurisdiction over a party only if that party has "minimum contacts" which demonstrate that that party has "purposefully availed" itself of the laws of that state such that the exercise of personal jurisdiction over that party does not "offend traditional notions of fair play and substantial justice."

Because your company is a Texas company, your company almost certainly satisfies this constitutional requirement and can be sued in Texas. But the party suing you might have no such contacts with the State of Texas. Some courts would therefore find that the forum selection clause is invalid. Others, however, would find it valid as to any lawsuit brought against your company, but potentially not valid if your company were to bring a lawsuit against the other party that has no contacts with Texas.

Depending upon the amount of the claim, an attorney might instead advise you to remove the case to federal court and then transfer venue to the federal district where your company is located. States cannot transfer cases from one state's court to another state. Federal districts do this all the time. Getting a dismissal in Missouri based on a forum selection clause may be more difficult than removing the case and getting it transferred depending on the facts and circumstances of your case.

Be aware that it is often very easy to waive a forum selection clause by not invoking it in a timely manner or by taking any action in the Missouri court inconsistent with claiming your company's right to enforce it--for example, by asking the Missouri court for any affirmative relief on behalf of your company other than a dismissal of the lawsuit.

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