Fifty Systems, Not One
Commercial contract claims are heard in state courts, or in federal district court where the parties are from different states or countries and the amount in dispute clears the statutory threshold. Procedure, limitation and enforcement all vary from state to state, so the first question on a US file is not what the claim is worth but which state's rules will govern how it is pursued.
Why the American Rule Changes the Maths
Under the American rule each party generally bears its own legal costs, win or lose - unless a statute or the contract itself provides for fee recovery. For a creditor used to costs following the event in Europe, this is the single most important difference. A modest claim can cost more to pursue than it is worth.
The practical consequence is that an attorney fee clause in your contract is worth a great deal in the United States, and its absence is a reason to settle rather than sue. We look for that clause before recommending anything.
Where You Can Actually Sue
A US court needs personal jurisdiction over the debtor. State long-arm statutes generally reach a company that has purposefully done business in the state, but a foreign seller shipping to a US buyer cannot assume any state will do. A well-drafted forum selection clause largely settles this in advance; without one, the analysis is fact-specific.
A judgment obtained in one state is enforced in another by domestication, which is procedural rather than a fresh case - so assets in a second state are reachable, with an added step.
How Long Does a US Claim Take?
| Stage | Typical Duration | Cost |
|---|---|---|
| Pre-legal demand Formal demand, negotiation, settlement | 3–6 weeks | Low |
| State court claim Filing to judgment, undefended | 3–8 months | Medium |
| Defended litigation Discovery, motions, trial | 1–3 years | High |
| Enforcement Judgment lien, garnishment, domestication | 2–6 months | Medium |
Discovery is the main driver of both time and cost in contested US litigation, and has no close equivalent in civil law systems.
Limitation Varies by State
There is no national limitation period. Written contract claims commonly run three to six years depending on the state, measured from breach. Where goods were sold, the Uniform Commercial Code as adopted in that state may set a different period. Because the applicable state can itself be in question, an ageing US claim should be assessed sooner rather than later.
How Does SXB Global Handle a US Case?
We establish the debtor's state, where the contract was performed, and whether your terms contain a forum selection or attorney fee clause. Those three answers determine whether litigation is economic at all. Where it is not, the work is to negotiate a settlement that beats the litigation-adjusted value of the claim. Where legal proceedings become appropriate, SXB Global coordinates the instruction of appropriately authorised local counsel. Legal services are provided by the relevant independent legal professionals.