Comprehension Case Read the text below and answer the questions. Lamitz organize
ID: 447638 • Letter: C
Question
Comprehension Case
Read the text below and answer the questions.
Lamitz organizes her information technology ("IT") business as a corporation, named TekServ, Inc., which is organized under the laws of Indiana. TekServ has a client, Gramon Associates, in Franklin, Kentucky. On behalf of TekServ, Lamitz sells IT hardware and software to Gramon. Lamitz drives a vehicle owned by TekServ to Gramon's place of business in Kentucky to deliver the hardware and software and to set up Gramon's IT system. The set up in Kentucky takes three days. TekServ has no other clients in Kentucky and has no other contacts with Kentucky.
1. Suppose that Lamitz failed to provide an adequate back up system for Gramon's IT system that she installed. As a result, a power outage caused the loss of significant data. As a result, Gramon had to invest significantly in overtime pay and other expenses to recreate the data, lost several clients, and suffered a blow to its reputation. Gramon wants to sue TekServ in a Kentucky trial court. Can Gramon sue TekServ in a Kentucky court? That is, does a Kentucky court have jurisdiction over TekServ? Why or why not? State the law and the facts that justify your conclusions.
Explanation / Answer
Q ) Can Gramon sue TekServ in a Kentucky court? That is, does a Kentucky court have jurisdiction over TekServ? Why or why not? State the law and the facts that justify your conclusions.
A ) TekServ, Inc., which is organized under the laws of Indiana.Gramon Associates, in Franklin, Kentucky and is a client of TekServ.Lamitz failed to provide an adequate back up system for Gramon's IT system that she installed. As a result, a power outage caused the loss of significant data. As a result, Gramon had to invest significantly in overtime pay and other expenses to recreate the data, lost several clients, and suffered a blow to its reputation.
Kentucky court cannot sue TekServ at a alarger extent. This is sbeacuse the firm is based in Indiana and is framed and organized as per those rules.There is no harm for TekServ cause Gramom associates is the one & only client in kentucy.The firm has no other clients to fear the loose of reputation.Of course the stain of th ecourt system wil stay forever.But the court cannot restrict the firm to a larger extent.The Gramom associated have to deal the compesenatation strategy and make terms that the TekServe wil share the expenses in overtime pay and other expenses to recreate the data.In this way atleat , the Gramom associates will have a certain capital backup that they invested in recreating the data.The only way is to proceed profesionally and adjust the expenses and maintain relations until the companies have their stand back.
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