Jurisdiction and ForumForum

Section § 410.30

Explanation

This law allows a court to pause or end a case if it believes the case would be more fairly or appropriately handled in another state's court. If a defendant has already appeared, certain other rules about dismissing cases don't apply.

(a)CA Civil Procedure Code § 410.30(a) When a court upon motion of a party or its own motion finds that in the interest of substantial justice an action should be heard in a forum outside this state, the court shall stay or dismiss the action in whole or in part on any conditions that may be just.
(b)CA Civil Procedure Code § 410.30(b) The provisions of Section 418.10 do not apply to a motion to stay or dismiss the action by a defendant who has made a general appearance.
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Section § 410.40

Explanation

This law allows anyone to sue a foreign company or a person who doesn’t live in California in California courts if the dispute involves a contract worth at least $1 million. Importantly, both parties must have agreed to use California law for deciding disputes and must allow California courts to have jurisdiction. The law applies to agreements made at any time, even before this section was in place, essentially making all such agreements in the past like they were made under this law.

Any person may maintain an action or proceeding in a court of this state against a foreign corporation or nonresident person where the action or proceeding arises out of or relates to any contract, agreement, or undertaking for which a choice of California law has been made in whole or in part by the parties thereto and which (a) is a contract, agreement, or undertaking, contingent or otherwise, relating to a transaction involving in the aggregate not less than one million dollars ($1,000,000), and (b) contains a provision or provisions under which the foreign corporation or nonresident agrees to submit to the jurisdiction of the courts of this state.
This section applies to contracts, agreements, and undertakings entered into before, on, or after its effective date; it shall be fully retroactive. Contracts, agreements, and undertakings selecting California law entered into before the effective date of this section shall be valid, enforceable, and effective as if this section had been in effect on the date they were entered into; and actions and proceedings commencing in a court of this state before the effective date of this section may be maintained as if this section were in effect on the date they were commenced.
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Section § 410.42

Explanation

This law states that any contract between a main contractor and a subcontractor, both based in California, for construction work in the state cannot have provisions requiring disputes to be resolved outside California. It also prohibits contract terms that stop a party from starting or finishing dispute proceedings within California courts. This applies to any work or materials related to construction projects where a lien can be claimed.

(a)CA Civil Procedure Code § 410.42(a) The following provisions of a contract between the contractor and a subcontractor with principal offices in this state, for the construction of a public or private work of improvement in this state, shall be void and unenforceable:
(1)CA Civil Procedure Code § 410.42(a)(1) A provision which purports to require any dispute between the parties to be litigated, arbitrated, or otherwise determined outside this state.
(2)CA Civil Procedure Code § 410.42(a)(2) A provision which purports to preclude a party from commencing such a proceeding or obtaining a judgment or other resolution in this state or the courts of this state.
(b)CA Civil Procedure Code § 410.42(b) For purposes of this section, “construction” means any work or services performed on, or materials provided for, a work of improvement, as defined in Section 8050 of the Civil Code, and for which a lien may be claimed pursuant to Section 8400 of the Civil Code (whether or not a lien is in fact claimed) or for which such a lien could be claimed but for Section 8160 of the Civil Code.
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