Your California Company Was Sued in Another State: Do You Have to Defend It There?

Last updated: November 2026. Reviewed by Pavel Kolmogorov, California business litigation attorney (State Bar No. 321018).

You may not have to defend the case in that state, but you cannot ignore it. If your company defaults, the plaintiff can bring the judgment to California, where a clerk enters it on application. You then have only 30 days after notice of entry is served to move to vacate it under Code of Civil Procedure section 1710.40. The real choices are to contest the other court's jurisdiction, move the case, or defend it. Kolmogorov Law, P.C., in Irvine, advises Orange County and Los Angeles companies on that decision.

Call (909) 235-6116 or contact us online to discuss an out-of-state lawsuit served on your California company.

What the out-of-state summons means

The papers come from another state's court, and that state's rules set the deadline. Read the summons the day it arrives. The response time may be shorter than the 30 days California owners expect.

Service in California does not make the suit a California case. A court elsewhere can generally serve a defendant here, and the only question is whether that court has power over your company.

Before anything else, send the complaint to your insurance broker. Our page on whether business insurance covers a lawsuit explains why. Do not call the plaintiff's lawyer to argue the merits.

Can that court hear a case against a California company?

Sometimes. A court in another state can generally bind your company only if the company has enough connection to that state related to the dispute, or if it consented. A company incorporated in that state can generally be sued there on any claim.

Connection usually means conduct aimed at the state: selling to customers there, sending staff there, or performing a contract there. A website that residents can view is a weaker basis. The analysis mirrors the one on our page for out-of-state defendants sued in California, with the roles reversed.

Consent usually means a contract. If the agreement you signed names that state's courts, the jurisdiction fight is often over before it starts, as our page on forum selection clauses explains. A clause choosing that state's law is a different matter and does not by itself decide where the case is heard. See our page on choice of law clauses.

Three ways to respond

Contest jurisdiction there. Many courts let a defendant appear for the limited purpose of objecting to jurisdiction, and the objection usually has to be raised at the outset. In some courts, filing an ordinary answer first can waive it. The procedure belongs to that state's rules, and a lawyer admitted there handles the filing.

Move the case. If the suit sits in a state court and qualifies for federal jurisdiction, it can generally be removed to federal court within 30 days after the defendant is formally served with the complaint. (28 U.S.C. § 1446(b)(1).) A federal court may then transfer the action, for the convenience of parties and witnesses and in the interest of justice, to a district where it might have been brought. (28 U.S.C. § 1404(a).) That can mean a federal court in California. Our page comparing state and federal court covers removal in more detail.

Defend on the merits. When jurisdiction is solid and the amount justifies it, the practical answer is a defense in that state through a lawyer admitted there.

Why ignoring it and fighting later is a gamble

Owners sometimes plan to skip the case and resist the judgment at home. I advise against it in most cases.

California has a streamlined process for money judgments from other states. The plaintiff files an application, and the clerk enters a California judgment based on it. (Code Civ. Proc., § 1710.25, subd. (a).) Notice of entry must then be served on the defendant, and it states that there are 30 days to move to vacate. (Code Civ. Proc., § 1710.30, subd. (a).)

The motion must be made not later than 30 days after that notice is served. It may rest on any ground that would be a defense to an action in California on the sister state judgment. (Code Civ. Proc., § 1710.40, subds. (a), (b).)

That sounds broad. In practice it is narrow. A California court generally does not retry the dispute, because the other state's judgment is owed full faith and credit. The usual question is whether the first court had jurisdiction over the subject matter and the parties. Even that question is generally closed if it was litigated and decided there. A company that defaults has usually staked the case on the jurisdiction argument. If the argument fails, the defenses on the merits are generally gone.

California rules that protect certain contracts

A few California statutes push back on out-of-state forum clauses.

Franchises: a clause restricting venue to a forum outside California is void for claims relating to a franchise business operating here. (Bus. & Prof. Code, § 20040.5.) Our franchise disputes guide has more.
Construction subcontracts: a clause requiring a subcontractor with principal offices in California to resolve disputes over a California project outside the state is void and unenforceable. (Code Civ. Proc., § 410.42, subd. (a).)
Employment: an employer may not require an employee who primarily resides and works in California, as a condition of employment, to adjudicate a California claim elsewhere, unless the employee had individual counsel in negotiating the term. The rule covers contracts entered into, modified, or extended on or after January 1, 2017. (Lab. Code, § 925, subds. (a), (e), (f).)

A caution belongs here. Courts in other states and federal courts do not always apply these rules the way a California court would. The argument has to be raised early, and in the right court.

How we help, and where

Our work is usually the California side of the problem. We read the complaint and the contract, assess jurisdiction and the forum clause, and recommend one of the three paths. When a response must be filed in the other state, it is filed by counsel admitted there, and we coordinate strategy with that lawyer.

When a sister state judgment has already been entered here, we move quickly on the 30-day motion in the Orange County or Los Angeles Superior Court. Cases removed and transferred to this part of California are heard in the Central District of California in Santa Ana or Los Angeles. Our business litigation practice page describes the rest of what we do.

What to bring to the first meeting

The summons, complaint, and any proof of how and when you were served.
The contract, with every amendment, purchase order, and set of terms.
A summary of your company's dealings with that state: customers, sales, travel, offices, and registrations.
Any notice of entry of judgment received from a California court.
Your business insurance policies.

Frequently asked questions

My California company was served with a lawsuit filed in Florida. Do I have to defend it there?

Not necessarily, but you must respond in some way before the deadline on the summons. If your company lacks sufficient contacts with Florida and never agreed to its courts, you can contest jurisdiction there. Some cases can be removed to federal court and transferred to California. Doing nothing leads to a default judgment that can be entered in California.

We ignored an out-of-state lawsuit last year and just received notice that the judgment was entered in California. Is it too late?

Possibly not, but the window is short. Under California Code of Civil Procedure section 1710.40, a motion to vacate must be made within 30 days after service of the notice of entry. The usual ground is that the other court never had jurisdiction over your company. The motion is not a second trial of the underlying claim.

Can I be sued in another state if my business is only in California?

Yes, in some circumstances. Another state's court can exercise jurisdiction over a California business that directed activity at that state, such as selling or performing a contract there, when the claim relates to that activity. A business can also consent through a forum selection clause. Without either, the court generally lacks power over a company that is not incorporated there.

Does a forum selection clause mean I have to litigate in that state?

Usually, yes. Courts across the country, including California's, generally enforce a freely negotiated forum selection clause between businesses. California statutes carve out exceptions for certain franchise agreements, construction subcontracts, and employment contracts with employees who live and work here. Whether an exception helps depends on the contract and on which court decides the question.

Can an out-of-state lawsuit be moved to California?

Sometimes. A case in another state's court that qualifies for federal jurisdiction can be taken to the federal court there by a notice of removal, generally due within 30 days of formal service. A federal judge may then transfer it to a California district for the convenience of parties and witnesses and in the interest of justice. A valid forum selection clause naming the other state usually controls, and courts depart from it only in exceptional cases.

Talk to a California business litigation attorney

If your California company has been sued in another state, call (909) 235-6116 or contact us online before the response deadline. Kolmogorov Law, P.C. is located at 327 Magnet, Irvine, CA 92618, and represents businesses in Orange County, Los Angeles, and throughout California.

This page provides general information about California law and is not legal advice. Outcomes depend on the contract, the other state's rules, the facts, and the court.