Can I pursue a US-registered company in a UK small claims court?

markstani

Hi, I'm a freelance journalist and I'm owed just over £1,000 by a US-registered company (although I know they have a UK-based attorney). Can I pursue the debt in the UK small claims court, and/or the US (in this case, Delaware)?

Manxman_in_exile

Are you in the UK? I ask because you use the term "attorney" which is (mostly) US usage.


What do the T&Cs of your engagement as a freelance say? Is it covered by UK or Delaware law? AIUI, Delaware is basically a US tax haven and make up their own laws.


It may be difficult to sue in the UK.

LadyDee

A US company wouldn't come under the jurisdiction of a UK court. Contact the Better Business Bureau in the district where the company is located in the US.

GrumpyDil

That's not necessarily correct as it depends upon where the contract was formed etc. We'd need more info to determine if they could fall under the jurisdiction of the UK court's but more practically you also need to consider enforcement of any award

George_Michael

LadyDee wrote: »

A US company wouldn't come under the jurisdiction of a UK court.

GrumpyDil wrote: »

That's not necessarily correct as it depends upon where the contract was formed etc.

Even if the contract was formed under UK law, unless the company concerned has an address in the UK for the papers to be sent to, a small claims case can't be opened.

steampowered

Can I pursue the debt in the UK small claims court, and/or the US (in this case, Delaware)?

First thing: Check the company's T&Cs. Do they have a governing law clause and/or a jurisdiction clause?

Second thing: Does the company have any assets in the UK which you could enforce against (e.g. an office or a bank account). If not, there isn't much point bringing a claim.

A US company wouldn't come under the jurisdiction of a UK court. Contact the Better Business Bureau in the district where the company is located in the US.

Not true. In a breach of contract case like this the default rule is that, in the absence of contrary agreement, the courts of the country where the contract was performed will have jurisdiction. As the contract was performed in England & Wales, the English and Welsh courts will have jurisdiction over this dispute.

It makes no difference whatsoever where the company is incorporated.

(n.b. Scotland has a different legal system, different court system and counts as serving outside the jurisdiction! Don't refer to the UK here!)

Even if the contract was formed under UK law, unless the company concerned has an address in the UK for the papers to be sent to, a small claims case can't be opened.

Not true. It is common and straightforward to serve proceedings on overseas addresses. The courts have a clear process and specific forms to allow you to do this. A UK address is not required.

The difference is that you wouldn't be able to use the moneyclaimonline system to start the claim. You'd have to file paper form N1 with your nearest county court, accompanied by form N510.

By the way, it is the same in Scotland. Scotland has a different legal and court system. Suing someone in Scotland through the English courts counts as serving outside the jurisdiction - you can't use MCOL to sue someone in Scotland either.

markstani

Thanks for your responses. They have been most helpful. Yes, I am based in the UK. I guess I will begin by sending a letter of intent to the company's UK lawyers, and see where we go from there.

shaun_from_Africa

markstani wrote: »

I guess I will begin by sending a letter of intent to the company's UK lawyers, and see where we go from there.

There might be another reason but I can't think why the company concerned would have lawyers in the UK if they don't actually have a business presence there.
It might be worth asking their lawyer about this, although they may not tell you.