You should speak with a local attorney to discuss options going forward. Many facts could determine where is even possible to file, let alone which locality would be best. The choice of law section in your supply agreement could carry great weight, as could that suppliers minimum contacts in your state. Your attorney will be able to guide you through all of the complexity.
This possible action would not be a good do-it-yourself project. You should be consulting with counsel. There is simply not enough information in your statement to provide you with much more than my colleagues have already. You need to review your contract with the MI company regarding choice of law provisions. As well, you'll need to determine if the MI company has sufficient contacts with CA to be subject to personal jurisdiction. Your attorney will be able to help you through all of this. If you need a referral, try the Avvo find a lawyer feature.
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Law Offices of Eric J. Gold
As the previous posts indicate, there is not sufficient information to answer your question.
The answer will depend upon the written agreement between yourself and your supplier, the facts surrounding the transaction, as well as the extent of the contacts between your supplier and the State of California.
Please feel free to contact me for a free consultation so we may discuss the matter further (408 796-9616.
I concur with the advice the other attorneys have provided you thus far. Without knowing more specifics about your situation, it isn't possible to ascertain which state you can/should file suit in. I can only recommend that you consult with an attorney who can advise you after having reviewed the facts.
Questions an attorney will ask during the consultation are sure to include: (1) whether you have a written contract with the supplier, (2) if there was a written contract, does it have governing law/venue provisions that dictate which state's laws will apply if a lawsuit arises, and/or which state's courts will hear the suit, and (3) whether the supplier has made "minimum contacts" with CA (e.g., a physical office in the state, advertising in CA, etc.) such that dragging them to CA to defend a lawsuit would be fair. All these facts and more would determine where the suit can be filed.
Please feel free to contact my office should you wish to discuss the matter further. Best of luck.