The lawyer must be licensed in the state where the case is filed if he intends to appear in court.
Never use a lawyer who is not licensed in the state where the lawsuit is pending. Even if they tell you that they can practice there, a lawyer who regularly practices in the CITY where the court is will be most up to date on the expectations and the personality of the judge in the court, and the laws of the state.
All that to say, "yes, it matters."
Good Luck
