• by Wendy Davis  @wendyndavis, August 11, 2010

Paul Ceglia, the New York man who claims to own 84% of Facebook argues that the case belongs in state court, not federal court, on the theory that CEO Mark Zuckerberg still considers New York his home.

In court papers filed this week in federal district court in Buffalo, Ceglia alleges that Zuckerberg is still registered to vote in Westchester and has a New York state drivers' license. Ceglia argues that these documents show that even though Zuckerberg resides in California, he still considers New York his "domicile," or home.

If Ceglia and Zuckerberg both are domiciled in New York, the federal court wouldn't have jurisdiction over the breach of contract lawsuit. Instead, only New York state courts would have jurisdiction to hear the case.

Ceglia originally sued Zuckerberg in New York, but Zuckerberg transferred the case to federal court; the Facebook CEO argued at the time that the federal court had jurisdiction because Zuckerberg is a resident of California.

Ceglia didn't say why he wants the case sent back to state court, and his lawyer hasn't yet returned a phone call seeking comment. But the case seemed to be going better for the Wellsville resident when it was still in the state system, considering that a judge in Allegany County, N.Y. entered a temporary restraining order banning Facebook from transferring assets

The federal court later lifted that injunction.

Even if the case does return to state court, Ceglia would still have to prove a valid contract existed between himself and Zuckerberg. So far, the hard-to-read copy that Ceglia has provided has raised many questions. That purported contract provides that Ceglia would pay Zuckerberg $1,000 to develop software for a project "designed to offer the students of Harvard university access to a website similar to a live functioning yearbook." It also says that Ceglia would obtain a 50% ownership in the software and the "business interests derived from the expansion of that service to a larger audience," with additional percentage points if the software was delivered late. The document, dated April 4, 2003, refers to the project as both "The Face Book" and "The Page Book."

Zuckerberg's lawyers have questioned the document's authenticity.

Ceglia faces separate allegations that he cheated consumers by taking $200,000 worth of orders for wood pellets that were never delivered.