[funtober]

The options are to sue them in their foreign country or sue them in the United States. If you sue them in the US, you face jurisdictional issues (do they have sufficient contacts in the US to make a lawsuit here fair?) as well as judgment recognition issues (you would probably have to attach the damage award to a contract they have with someone in the US to collect if the foreign country court system doesn't recognize the US judgment).

[sjtgraham]

Thanks for your answer. I have two questions if you don't mind:

- Are reciprocal judgements possible in a lawsuit such as this hypothetical example?

- What is to stop the defendent from liquidating and reappearing as a new legal entity?

[funtober]

Reciprocal judgments: I'm not perfectly clear what you mean by reciprocal judgment. I think that you'll find this helpful on the matter, though: http://travel.state.gov/law/judicial/judicial_691.html

Liquidation: Corporate governance issues are a matter of the country where the defendant is organized. So if the law there allows them to do it, they can. I'm less familiar with the process of chasing the money. Trying to remember back to law school here: In the US, the debt doesn't just disappear. It would either attach to the old entity (which would have to be paid a fair price for the acquisition of its assets) or the new entity (which acquired its assets and liabilities per the acquisition agreement). So if it has no assets to begin with, it's possible. If it has real assets, it's more difficult to do. Not impossible, just more difficult.