Defending against lawsuits when based in another country


3

I want to start a company that is based in the US - since that's where my suppliers and biggest customer base will be.

What concerns me are potential lawsuits. I will be selling nutraceutical products, and although I intend for them to be safe, I worry about lawsuits.

If I have product insurance and am sued, will the insurance company's lawyers show up in court to defend my business? Or would I have to travel to the US myself? As I plan to run this business on a part-time basis, it would be very difficult to do so.

Insurance Legal

asked Jan 31 '12 at 07:39
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Jason.Ppdev
35 points

2 Answers


2

As you are probably aware, there are often many more lawsuits in the US that in many other countries. Also a company can be sued for a vast multitude of reasons.

In general, if a corporation is sued it is the lawyers that go to court to defend the corporation, not the owner(s). In fact if you are not a lawyer licensed to practice in a particular court, you would not be able to represent the corporation.

As to who pays for the lawyers, you can get many kinds of insurance and what they will pay for and the amounts they will be willing to pay will be spelled out in the particular policies you purchase.

You state the corporation will be selling nutraceutical products. If you were to market them in a way that was contrary to FDA regulations, or you used the mails to send fraudulent goods for example, then it is quite likely that you might be sued by the federal government and they might attempt to extradite you and compel you to defend yourself in court. The mere fact that you have a corporation will not guarantee that you will be immune for civil liability for acts you commit on behalf of the corporation.

answered Jan 31 '12 at 15:32
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Jonny Boats
4,848 points
  • Thanks, that sounds about right. – Jason.Ppdev 8 years ago

0

Wouldn't you have a US business partner or sales agent? Couldn't that person appear in court when needed?

answered Jan 31 '12 at 21:38
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User6492
1,747 points
  • No, I don't have a US business partner or sales agent. It's just an online store. – Jason.Ppdev 8 years ago

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