A lawsuit can be filed in the state where the plaintiff resides (the plaintiff is the party filing the lawsuit) or in the state where the defendant (party being sued) resides or in the state where the claim arose.Some states have rules limiting jurisdiction in out of state Small Claims Court actions to certain types of cases.  These rules vary from state to state.  It would be advisable to speak with the Small Claims Court advisor in the state where the lawsuit was filed to determine whether or not this is an issue.