International Business Disputes in California: Foreign Companies, Service Abroad, and Enforcing Judgments

Last updated: October 2026

A California business in a dispute with a company in Hong Kong, Japan, France, or Cyprus faces four questions before the merits. Which court or arbitral body has the case. Which law applies. How the foreign party is served. Whether a judgment can be collected where the assets are. Foreign companies sued here face the same questions from the other side. Kolmogorov Law, P.C. handles cross-border commercial disputes from its Irvine office, in the Superior Courts of Orange County and Los Angeles and in California federal court, and coordinates with counsel abroad when the case requires it.

Call (909) 235-6116 or contact us online to discuss a dispute with a foreign company, or a California lawsuit against one.

The disputes we see

A Hong Kong licensor owed a seven-figure fee by a Los Angeles licensee under a technology license. A Japanese manufacturer selling equipment to a Nevada buyer through a California intermediary. A French company suing an Orange County entrepreneur over a distribution relationship. A trade secret and copyright case between rival online travel platforms whose contract pointed to the courts of Cyprus. Each involved a contract written in one legal tradition, performed across borders, and litigated in a forum one side did not choose.

Forum: court, arbitration, or somewhere else

The contract usually answers this. A forum selection clause naming a foreign court is generally enforced, and a defendant sued in California in violation of one can move to stay or dismiss. See our page on forum selection clauses. An arbitration clause naming an international body such as the ICC, HKIAC, SIAC, or JAMS International is enforced through a petition to compel; see our page on motions to compel arbitration. Where the clause lets the initiating party choose between law and forum options, the choice is strategic. We make it with enforcement in mind, because a judgment is only as good as the place it can be collected.

Where there is no clause, the question is whether a California court has personal jurisdiction over the foreign company: whether it purposefully directed business at California and the claim arises from that. A foreign defendant challenges jurisdiction by motion to quash, before any general appearance.

In the Cyprus case, our two-lawyer defense team faced eight opposing attorneys and concentrated on the forum question. The federal court conditionally dismissed the case in favor of the Cypriot courts, including as to defendants who never signed the agreement. The Daily Journal covered it; see our In the Press page.

Serving a foreign defendant

A summons on a person outside the United States is served as provided in California's service chapter or as directed by the court. (Code Civ. Proc., § 413.10, subd. (c).) If the court finds the method reasonably calculated to give actual notice, service may instead follow the law of the place of service, or the direction of the foreign authority in response to a letter rogatory. Those rules are subject to the Hague Service Convention. (Code Civ. Proc., § 413.10, subd. (c).)

In practice, service on a company in a Hague Convention country goes through that country's central authority, which can take months. The exceptions are countries that permit service by mail and contracts that designate an agent for service. Some countries object to mail service entirely. Getting this wrong produces a default judgment that cannot be enforced abroad, which is the worst outcome in a cross-border case. We plan service before filing.

Foreign companies suing in California

A foreign corporation that transacts intrastate business in California without qualifying with the Secretary of State cannot maintain an action in California courts on that business if the action was commenced before it complied. (Corp. Code, § 2203, subd. (c).) The cure is to qualify, pay a $250 penalty plus the filing fees, and file receipts showing payment of the fees, the penalty, and back taxes. The same statute deems an unqualified foreign corporation that transacts intrastate business to have consented to California jurisdiction when sued here. (Corp. Code, § 2203, subd. (a).) For a foreign plaintiff the fix is procedural but it must be done, and defendants raise it.

Foreign companies that merely sell into California from abroad, without an office or employees here, are usually not transacting intrastate business and need not qualify to sue on a contract.

Which law applies

A choice of law clause is generally honored between businesses. The chosen jurisdiction must have a reasonable relationship to the parties or the deal, and the result must not offend a fundamental California policy. Without a clause, California applies its own conflict rules, which usually favor the law of the place with the closest connection to the contract. Foreign law, when it applies, is proven in a California court through expert declarations, which means budgeting for a lawyer from that country.

Evidence abroad

Documents and witnesses in another country are reached through the Hague Evidence Convention, letters rogatory, or the cooperation of the parties. Discovery abroad is slower and narrower than California discovery, and some countries restrict the transfer of business records outside their borders. Cases are planned around what can actually be obtained.

Enforcing the judgment

A California judgment against a foreign company with no California assets has to be recognized abroad, country by country, under that country's rules. The United States is not party to a general treaty on judgment recognition, so enforceability varies widely. Some countries recognize American judgments readily. Others require a new lawsuit. This is why arbitration is often chosen in international contracts: arbitral awards are enforceable in more than 170 countries under the New York Convention, with limited defenses.

The reverse case, enforcing a foreign country's judgment in California, proceeds under the Uniform Foreign-Country Money Judgments Recognition Act, which requires an action for recognition and a showing that the foreign court was impartial and had jurisdiction. Judgments from other U.S. states follow a simpler application procedure under the Sister State Money Judgments Act; see our judgment enforcement page.

Where these cases are heard

International commercial cases with a federal question or diversity of citizenship are often filed in the Central District of California, in Santa Ana or Los Angeles. State-law claims are heard in the Superior Court, the Central Justice Center in Santa Ana for Orange County or the Stanley Mosk Courthouse for Los Angeles. International arbitrations seated in California typically sit in Los Angeles.

What to bring to the first meeting

Bring the contract in every language version, with the clauses on forum, law, arbitration, and notices marked. Bring the correspondence, the payment records, and what you know about the foreign party's structure and assets. If you have been served, bring the papers and the date and method of service; the first motion depends on it.

Frequently asked questions

Can I sue a foreign company in California?

If the company purposefully directed business at California and your claim arises from that, a California court can exercise jurisdiction. Service must follow Code of Civil Procedure section 413.10 and, for Hague Convention countries, the Convention. The contract's forum clause may send the case elsewhere.

How do I serve a company in another country?

As provided by California's service rules, as the court directs, or under the law of the place of service or a letter rogatory where the court finds the method gives actual notice, all subject to the Hague Service Convention. (Code Civ. Proc., § 413.10, subd. (c).) Central authority service is the default in Convention countries.

Can a foreign company sue in California without registering here?

A foreign corporation that transacts intrastate business here without qualifying cannot maintain an action on that business until it qualifies and pays the penalty, fees, and back taxes. (Corp. Code, § 2203, subd. (c).) A company that only sells into California from abroad generally is not transacting intrastate business.

Is a California judgment enforceable against a company in another country?

Only under that country's recognition rules, which vary. Arbitral awards travel better: the New York Convention requires signatory countries to enforce them with limited defenses, which is why international contracts often choose arbitration.

Can a foreign judgment be enforced in California?

Yes, through an action under the Uniform Foreign-Country Money Judgments Recognition Act, which requires showing that the foreign court was impartial, had jurisdiction, and followed fair procedures.

Talk to a California business litigation attorney

If your dispute crosses a border, call (909) 235-6116 or contact us online. Kolmogorov Law, P.C. is at 327 Magnet, Irvine, CA 92618, and represents California and foreign companies in Orange County, Los Angeles, and California federal court. See also our pages on IP license disputes and breach of contract.

This page provides general information about California and federal law and is not legal advice. Cross-border disputes depend on the contract, the countries involved, and the forum.