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Case 1. Javier is traveling from his home in New York to Dallas, Texas. While dr

ID: 1168763 • Letter: C

Question

Case 1. Javier is traveling from his home in New York to Dallas, Texas. While driving through Oklahoma, his brakes fail and he is injuredin the ensuing crash. Javier wants to sue the maker of his car, Energy-Auto Inc. Energy's headquarters is in New York. It does not haveany dealerships in Oklahoma or do any advertising in Oklahoma.

In which state or states can the plaintiff sue the defendant?

Assume that the plaintiff will sue the defendant for $100,000 in damages. Can the suit be brought in federal court? Explain.

If Javier only had relatively minor damage, and was suing for $9,000, could he sue in federal court?

In a similar situation, a defendant argued that the auto manufacturer could still be held liable in Oklahoma, because it was foreseeablethat the defective car could end up there and cause injury. The court disagreed, and found Oklahoma did not have jurisdiction. Why didthe court think it inadvisable to base jurisdiction on foreseeability? If it had ruled otherwise, where would makers of products potentiallyhave to stand trial? What would this do to their costs?

Explanation / Answer

Plaintiff can sue the defendant in the state N.Y. The defendant must reside or have business in the state where plaintiff can sue.

The state O should not be considered for suing, since the defendant is not staying there or not having any business there.

The suit could be brought in the federal court, since the claim for damage is $100,000. The federal court can only accept suit that arises due to controversy between the residents of different states, and if the claim for damage exceeds $75,000.

Mr. J can’t sue in federal court, since the claim for damage is only $9,000. In order to sue in the federal court, the plaintiff must have damage claim exceeding $75,000.

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