May a Corporation be Sued Where it has Remote Employees?

According to a recent decision by an Illinois Appellate Court, the answer is yes.  The court concluded that venue was proper in the county where an employee worked out of the employee’s home.

In Illinois, a corporation’s residency determines venue.  More specifically, a corporation “…is a resident of any county in which it has its registered office or other office or is doing business.”  735 ILCS 5/2-102.

Here, the corporation hired the employee to work out of his home to serve the corporation’s Illinois customers.  The court determined that the employee’s home office qualified as an “other office”.  Therefore, it was proper to sue the corporation in that county.  Per the court’s analysis, the corporation’s ownership interest in the property is not the most relevant factor for purposes of venue.  Rather, whether the property was a “fixed location purposely selected to carry on an activity in furtherance of the corporation’s business activities,” controlled.  Tabirta v. Cummings, 2019 IL App (1st) 172891 (March 26, 2019).

In light of this ruling, corporations should consider the impact that the location of remote employees in Illinois will have on venue for potential lawsuits.  This rule is applicable to both foreign and Illinois corporations.

The court’s opinion may be found here.