Are you doing business with companies in Texas? Sometimes, Texas companies do not pay as agreed. Is it worth trying to collect from a Texas company? Is it worthwhile to sue a Texas company in your state? Is it worthwhile to sue a Texas company in Texas?
If it worthwhile to sue a Texas company in your State, you need to act now to be prepared. The first thing to consider is whether your contracts, invoices or purchase orders have a valid forum selection clause. A valid forum selection clause will permit you to sue your Texas business customer where you operate.
If you are a Texas company, a valid forum selection clause will permit you to sue an out of state business customer in Texas.
If you sue a Texas company in another state, can you enforce the out of state judgment in Texas? Yes, a judgment granted in any other state, called a “foreign judgment,” can be enforced in Texas by filing the foreign judgment in Texas under the Uniform Enforcement of Judgments Act.
Similarly, a judgment against a non-Texas business customer can be enforced in other states. When properly filed, the foreign judgment has the same effect and is subject to the same procedures, defenses, and proceedings applicable to judgments in Texas.
This being said, be careful, do not apply these rules to consumers.