Quixtar, Inc. v. Signature Management Team

May a lawsuit proceed in a state in which downline distributors reside when the dispute is actually between two non-resident companies?

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No. The Supreme Court of Texas found that the trial court did not abuse its discretion in allowing the forum non conveniens dismissal. Although ordinarily a resident plaintiff's choice of forum deserves deference, a nonresident plaintiff's choice deserves less deference. The lawsuit was primarily a dispute between Michigan companies and there was no reason to have the case heard in Texas.

Case and case summary are also available online at: http://www.mlmlegal.com/legal-cases/Quixtar_v_SignatureManagementTeam.php

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Published In: Civil Procedure Updates, MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:State, 5th Circuit, Texas | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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