Being sued in the U.S.; long arm of U.S. justice; Class action

Outline

The United States is a nation of lawyers and lawsuits. Lawyers play a much more active role in the business process in the U.S. than they do anywhere else in the world. For companies with substantial business in the U.S., litigation usually is not a "once in a lifetime" occurrence. Rather, it is a part of doing business. When a business dispute arises which cannot be resolved amicably (either with or without the involvement of attorneys), the threat of litigation or litigation itself usually follows.

In the vast majority of disputes, the threat of litigation is enough to produce a resolution. Yet a substantial number of such disputes do result in litigation being initiated. Even in such cases, the overwhelming majority are settled or otherwise disposed of before a trial, so that a judge or jury never has an opportunity to decide the cases on the merits.

The U.S. legal system for resolving business disputes often is a surprise, if not a rude shock, to non-U.S. companies facing it for the first time. This article takes a look at that system from the viewpoint of a "first-timer" and addresses, in non-legal terms, some of the more important aspects of that system.
We begin with a brief overview of the judicial setting and the principal players in that setting, American lawyers. Next, we examine the broad bases for U.S. jurisdiction over non-U.S. persons. We then take a look at the process itself, including the peculiarly American phenomena of varying and variable legal fees, pretrial discovery and punitive damages. Finally, we look at alternatives to formal litigation.
The emphasis is on the practical. It is not our purpose to defend or criticize the system. Whatever is said, it is certain that the American legal system functions best when all participants fully understand its benefits and limitations.

Applicable Law
Detailed information

The setting
The broad reach of U.S. jurisdiction
The process
Alternatives to a formal litigation
Conclusion

Frequently asked questions
Useful links

www.zsrlaw.com

December 2007