Often the contract will have a forum and/or venue selection clause in it that designates what law applies and where disputes are settled. I would start by examining the contract for those items. Your question is one of proper jurisdiction (both personal and subject matter). Without knowing more I would say that you would likely be able to bring suit in here in the US. It sounds like the defendant certainly has availed itself of the forum and could expect suit here. It also would be clear that there are minimum contacts in the US and it would be fair to the defendant to be sued here. These are some of the considerations you need to look at. In short, you're looking at subject matter and personal jurisdiction, then the proper venue. Venue is based on convenience and efficiency so if you file in a state where the defendant is incorporated or where a large portion of the facts and circumstances which give rise to the lawsuit exist, you should be fine there. A corporation can be subject to several different jurisdictions based on their contacts with a state but, can only be considered a "resident" of one judicial district in that state. That's where your venue may be proper. Again, you need to focus on the convenience of the evidence and witnesses to avoid a forum non convenienes motion. Look at the VW v. Woodson, Burger King, Asahi Metal, Coastal Video, Helicopteros and Piper Aircraft line of cases to get you started. Also, you should look at the option of getting a judgment in China and transferring it to the US. Regardless, you need an international law attorney experienced in contracts. Good luck.
Answered on Dec 29th, 2011 at 11:46 AM