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State for a law suit

Asked by: John - 31 January, 2013
If my company is sued do the laws of the state in which my business is established govern the suit? For instance, if my business is established in Delaware and I'm sued by a former employer for "Non-Compete" do the laws in Delaware dictate the outcome of the suit?
Answered by: Roman Fichman, Esq. - 31 January, 2013
John,

It all depends on the subject matter of the law suit. For example, law suits involving employment matters are governed by the laws of the state where the employment took place and not by the state where the company was formed. Whereas, shareholder/member lawsuits will most likely be governed by the laws of the state where the company was formed.

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