Firstly, if she issues proceedings ask for them to be transferred to your local court. As this is cross border I believe that Scottish law has no Jurisdiction so file a defence (it will be in the papers you get) disputing Law and Jurisdiction, it should be English Law and English court as the "contract was substantially pwerformed in England. She can issue in Scotland but it should be transferred to your local court to be dealt with by English Court under English law.
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