If two individuals in State A create an unincorporated nonprofit organization, can they be sued in State B regarding disputes over the organization?

The correct answer is grounded in the principles of personal jurisdiction and the nature of unincorporated organizations. In this scenario, the two individuals have established an unincorporated nonprofit organization in State A. As this organization does not have separate legal status like a corporation does, the individuals who formed it retain personal liability and their domicile plays a critical role in determining whether they can be sued in another state.

Since both individuals are domiciled in State A, they are subject to the jurisdiction of State A. Generally, for a court in State B to assert jurisdiction over individuals based in State A, there must be sufficient minimum contacts connecting them to State B, which is typically established through actions taken within that state or other connections. If their activities do not extend into State B or create those necessary contacts, a court in State B would likely not have the jurisdiction to hear a lawsuit against them.

Thus, this premise leads to the conclusion that they cannot be sued in State B simply because they created an organization in State A and have no significant links to State B. The domicile of both individuals in State A creates a barrier to the exercise of jurisdiction in State B without additional circumstances that would establish such jurisdiction.