Maintaining the Home Court Advantage

Source: AICPA CPA Insider

It's increasingly common for CPA firms to do business in other states or to do work for clients in different states. This increases the risk that a firm will be sued in distant jurisdictions. To reduce the risks and costs associated with traveling out of state to defend a lawsuit, consider including the following provisions in your agreements with clients:

An exclusive jurisdiction or forum selection providing that lawsuits will be filed in a specified jurisdiction (usually the place where your office is located).

A choice of law provision under which your home state's law applies even if a lawsuit is filed out of state.

An arbitration clause, which can eliminate jurisdictional risks and provide several other benefits.

For the complete article, read “Where Can Your CPA Firm Be Sued?” 

From AICPA CPA Insider, January 31, 2011, http://www.CPA2biz.com.