I would have thought that there would be such a general answer to this question. Obviously with any large organization, personal jurisdiction won’t be an issue with a variety of states. Assuming no forum selection clause, it would seem that when a dispute arose, each party would want to file in the state that would be most favorable to it.
In any case (worth less than $75k, so less forget about diversity; let’s further assume sufficient contacts so personal jurisdiction is not an issue) if someone sued me in their home state court, why shouldn’t I just sue them back in my home state?
So, you are telling me that it is judged on a case by case basis? It would seem as if this type of thing has happened many times before and has been ruled on before.
Is it really just a race as Bearflag70 suggests? Whichever court rules first on the venue motion, that party wins? As far as Amasia’s statement, lets assume both states have compulsory counter-claim rules.