How to sue a Business that is Not Located in Georgia: The Long Arm Statute
A Georgia court must have power to rule over both parties in order for a lawsuit to be properly filed in Georgia. This concept is known as jurisdiction under the law. If a Georgia court does not have jurisdiction over both parties, then the defendant, the party against whom a lawsuit is filed, may have grounds to file a motion to dismiss the case.
O.C.G.A. § 9-10-91, commonly known as the Georgia Long Arm Statute, defines when a lawsuit may be filed against a business not located in Georgia. The statute provides a list of conditions, one of which must be met, in order to file a lawsuit in Georgia against a nonresident defendant. The statute sets forth the following grounds:
(1) If the defendant transacts business in Georgia;
(2) If the defendant “commits a tortious act or omission” in Georgia;
(3) If the defendant “commits a tortious injury” in Georgia that was caused by an act in another state if the defendant “regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered in this state”; or
(4) If the defendant “owns, uses, or possesses any real property situated within this state.”
The application of this statute is very complicated and, consequently, much litigation surrounds how the Long Arm Statute is interpreted and applied in business disputes. If you are interested in pursuing legal action against a business located outside of Georgia, or if you are a nonresident defendant, please contact a business attorney for further legal advice tailored to your specific legal situation.
