Applying the Law to a Set of Facts
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Read the Hypothetical Case Problem #1 at the end of Chapter 1 and respond to these questions:
1. If Javier sued Energy-Auto Inc., identify who would be the plaintiff and the defendant.
2. In which state or states can the suit be brought?
3. Assume that Javier incurred $100,000 in damages.
a) Analyze whether the suit can be brought in federal court
b) Explain the advantages and disadvantages of federal versus state court for this type of suit.
Case Problem 1:
Javier is traveling from his home in New York to Dallas, Texas. While driving through Oklahoma, his brakes fail and he is injured in 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 have any dealershipsin Oklahoma or do any advertising in Oklahoma.
1. In which state or states can the plaintiff sue the defendant?
2. Assume that the plaintiff will sue the defendant for $100,000 in damages. Can the suit be brought in federal court? Explain.
3. If Javier only had relatively minor damage, and was suing for $9,000, could he sue in federal court?
4. In a similar situation, a defendant argued that the auto manufacturer could still be held liable in Oklahoma, because it was foreseeable that thedefective car could end up there and cause injury. The court disagreed, and found Oklahoma did not have jurisdiction. Why did the court think itinadvisable to base jurisdiction on foreseeability? If it had ruled otherwise, where would makers of products potentially have to stand trial?What would this do to their costs?
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