How to Handle Jurisdiction Issues When Suing a U.S. Company from South America

If you’re a business owner or investor in South America who’s been wronged by a U.S.-based company, one of the first challenges you’ll face is figuring out where and how to sue.

It’s not uncommon for foreign clients to reach out to our firm after a contract dispute or unpaid deal with a U.S. entity, only to realize that the question of jurisdiction, that is, which court has the authority to hear the case, is the first and biggest obstacle.

This guide breaks down how jurisdiction works in cross-border disputes, what to expect when suing a U.S. company from abroad, and how the right legal strategy can help you get your case heard in the right place.

What Does “Jurisdiction” Mean in a Lawsuit?

Jurisdiction determines which court has the power to decide your case. In the context of international or cross-border disputes, this usually comes down to two key questions:

• Does the U.S. court have authority over the parties? (called personal jurisdiction)
• Does the U.S. court have authority over the subject of the dispute? (called subject matter jurisdiction)

Even if you’ve clearly been wronged, a U.S. court can’t hear your case unless these jurisdictional requirements are met. This is why it’s critical to evaluate jurisdiction early, before investing time and resources in litigation.

Can You Sue a U.S. Company from South America?

In most cases, yes, but only under certain conditions. If a U.S. company has significant contact or business activity in your country or with you directly, it may be subject to jurisdiction in the United States. For example:

• The company sold you goods or services and delivered them to your country.
• The company entered into a contract with you that includes a U.S. forum selection clause.
• The company committed a wrongful act (such as breach of contract or fraud) that caused harm in your country.

Courts will look at whether the company “purposefully availed” itself of doing business with foreign parties. In simpler terms, if a U.S. company reaches across borders to make money from your deal, it can usually be required to answer for that in a U.S. court.

Where Should You File the Lawsuit?

Choosing the right venue is just as important as proving jurisdiction. Generally, you can sue:

1. In the state where the U.S. company is incorporated or headquartered. For example, if the company is based in Florida, you can likely file in Florida state or federal court.
2. In the state where the company conducts business with you. If the dispute arises out of transactions or activities that took place in a specific state, that court may have jurisdiction.
3. In federal court, if there is diversity of citizenship (you’re a foreign citizen suing a U.S. company) and the amount in controversy exceeds $75,000.

Each option has strategic advantages, so consulting an attorney familiar with both U.S. and international law is essential.

What If Your Contract Has a “Forum Selection” Clause?

If your agreement with the U.S. company includes a forum selection clause, a provision specifying where disputes must be resolved, this clause will usually control where you can sue. Many companies include these clauses to require disputes to be heard in a specific state or even through arbitration.

Before filing suit, review your contract carefully. A skilled business litigation attorney can help you determine whether that clause is enforceable or whether you can challenge it under U.S. law.

How to Serve Legal Papers from Abroad

Once you’ve decided where to file, the next challenge is serving the U.S. company with notice of the lawsuit. For South American plaintiffs, this often involves following international procedures such as the Hague Service Convention, which governs how documents are legally served across borders.

Serving papers correctly is critical, if done improperly, your case could be delayed or even dismissed. A U.S.-based attorney familiar with cross-border litigation can manage this process to ensure compliance with international and U.S. service rules.

Common Jurisdiction Challenges in Cross-Border Litigation

When suing a U.S. company from South America, the defendant may try to dismiss your case by arguing that:

• The U.S. court lacks personal jurisdiction.
• The dispute should be heard in another country (the “forum non conveniens” defense).
• The contract requires arbitration instead of litigation.

Anticipating these defenses and preparing strong arguments in advance is critical. The right lawyer will develop a strategy that aligns with your jurisdictional facts, contract terms, and business goals.

Why Work with a Florida Law Firm for Cross-Border Disputes

Florida is uniquely positioned as a bridge between the United States and Latin America. Many South American companies do business through Florida-based entities, and many cross-border disputes involve Florida law.

At Ayala Law, our team has extensive experience representing Latin American clients in complex U.S. litigation involving jurisdictional disputes, and contract breaches. We understand the nuances of international service, U.S. court procedure, and the cultural context that often underlies these cases.

Our founder, Eduardo A. Maura, originally from Lima, Peru, built this firm with international clients in mind. We know what’s at stake for business owners who operate across borders, and we structure each case with both local insight and global perspective.

Final Thoughts: Jurisdiction Can Make or Break Your Case

Jurisdiction isn’t just a procedural hurdle, it can determine whether your case ever gets heard. Before filing a lawsuit against a U.S. company, consult with an attorney experienced in both U.S. and international litigation. The right preparation at the beginning can save you significant time, cost, and frustration later.

If you’re based in South America and have a dispute with a U.S. company, contact one of our experienced attorneys in Miami at 305-570-2208.

You can also contact our founding attorney Eduardo A. Maura at eduardo@ayalalawpa.com.

Schedule a case evaluation online here.

[The opinions in this blog are not intended to be legal advice. You should consult with an attorney about the particulars of your case].