Case summary: Company S LLC. operates an inn H in Arkansas. Company S purchased insurance from company C to cover any future damage. When a gas leaking from a heating element of swimming pool created a havoc in the building, company S filed an insurance claim to C, which it denied and asked federal district court for dispute resolution. Amount in controversy had exceeded
To find: The possibility of the court to exercise jurisdiction of diversity in this case.
Want to see the full answer?
Check out a sample textbook solutionChapter 17 Solutions
Bundle: The Legal Environment Of Business: Text And Cases, 10th + Mindtap Business Law, 1 Term (6 Months) Printed Access Card
- Jane is an attorney licensed to practice law in California. She performs legal services for John pursuant to a written fee agreement. John fails to pay Jane the balance due Jane for her services. Jane files a lawsuit against John in which she seeks, as plaintiff, to recover the $9,000 she believes John owes her. John retains a lawyer, Waldo, to represent him and pays Waldo $3,000 for his services in defending John against Jane's suit. Six months after filing the suit and getting nowhere in negotiations with Waldo, she calls John directly to try to negotiate a settlement. Jane has now violated a rule of professional conduct because she is not allowed to contact a party who is represented by an attorney, and John is represented by Attorney Waldo. violated a rule of professional conduct because she charged a fee of greater than $1,000 and did not have a written agreement with the client. O not violated any rule of professional conduct based on the facts given. O both a. and b. are…arrow_forwardA pediatrician contracted with Oxford Health Plans to provide care for Oxford members at specified rates. The pediatrician later filed suit in state court against Oxford on behalf of himself "and a proposed class of other physicians," alleging that Oxford had not made proper payment to them. Oxford moved to compel arbitration, relying on a contractual clause that provided: "No civil action concerning any dispute ... shall be instituted before any court and all such disputes shall be submitted to final and binding arbitration..." The state court granted Oxford's motion and referred the matter to arbitration. Both parties agreed that the arbitrator should decide whether their contract authorized class arbitration. The arbitrator, relying on the text of the contract, determined that the contract did authorize class arbitration. Oxford then filed a motion in federal court attempting to vacate the arbitrator's decision on the ground that the arbitrator "exceeded his powers" under Section…arrow_forwardGibson v. Manchester City Council (1979) Issue: The issue on appeal was whether the defendant's letter of February 1971 was adequately construed as an offer which Gibson accepted or an invitation to treat. Facts: The defendant City Council had adopted a policy of selling council houses to its tenants. The claimant was a tenant of such a council house, who had applied for details of the house he was renting and applicable mortgage terms, using the printed form designated and supplied by the defendant for this purpose. In February 1971, the city treasurer responded to this application stating, 'The [council] may be preparing to sell you the house at the purchase price…' and providing mortgage details. This letter also stated that it did not amount to a 'firm offer' of a mortgage and invited the claimant to make a formal application using an enclosed form. In March 1971, the claimant returned the completed form to the defendant. Following local elections in May of the same year, control…arrow_forward
- Pls help ASAParrow_forwardDonald Wayne Doyle (Debtor) obtained a guaranteed student loan to enroll in a school for training truck drivers. Due to his impending divorce, Debtor never attended the program. The first monthly installment of approximately $50 to pay the student loan became due. Two weeks later, Debtor filed a voluntary petition for Chapter 7 bankruptcy. Debtor was a 29-year-old man who earned approximately $1,000 per month at an hourly wage of $7.70 as a truck driver, a job that he had held for 10 years. Debtor resided on a farm, where he performed work in lieu of paying rent for his quarters. Debtor was paying monthly payments of $89 on a bank loan for his former wife’s vehicle, $200 for his truck, $40 for health insurance, $28 for car insurance, $120 for gasoline and vehicular maintenance, $400 for groceries and meals, and $25 for telephone charges. In addition, a state court had ordered Debtor to pay $300 per month to support his children, ages 4 and 5. Debtor’s parents were assisting him by…arrow_forwardUpon becoming employed by a state-licensed mortgage company, an individual who works for a depository institution as a mortgage loan originator (MLO) shall not be deamed to have tamporary suthority to act as an MLO in an application state if which of the following events has occurred? A) The individual has been a witness in a trial where the defendant was convicted of felony fraud. B) The individual has been subject to a court order for payment of child support. C) The individual had an application for an MLO license denied or an MLO license revoked or suspended in any governmental jurisdiction. D) The individual has submitted an application to be a state-licensed MLO in the application state and was registered in the NMLS as an MLO by the prior omploverarrow_forward
- Tiana, a citizen of Mississippi, was injured by humidifier made by Humidor, Inc. Humidor is incorporated in Delaware and has its principal place of business in Silver Springs, Maryland. By the time all of the medical bills, lost work, and other injuries accumulated, the total was $90,000. All of Tiana’s damages would fall under Mississippi or Maryland state law causes of action.In what courts can Tiana sue Humidor?• Where should Tiana sue?arrow_forward88. when may an agent in Florida write controlled business If writing an amount of similar business equal to or greater than If writing an amount of similar business of at least twice the amount of controlled business If accepting no commissions on the controlled business If not advertising to the general public as an insurance agentarrow_forwardH. J., Inc., and other customers of Northwestern Bell Corp. alleged that Northwestern Bell had furnished cash and tickets for air travel, plays, and sporting events and had offered employment to members of the Minnesota Public Utilities Commission in exchange for favorable treatment in rate cases before the commission. A Minnesota statute makes it a felony to bribe public officials. H. J. and other customers brought suit against Northwestern for violating the criminal bribery statute. Can the customers bring a criminal action? [H. J., Inc. v. Northwestern Bell Corp., 420 N.W.2d 673 (Minn. App.)] Baker and others entered a Wal-Mart store shortly after 3:00 a.m. by cutting through the metal door with an acetylene torch. They had moved some of the merchandise in the store to the rear door, but the police arrived before the merchandise could be taken from the store. Baker was prosecuted for larceny. He raised the defense that he was not guilty of larceny because no merchandise had ever…arrow_forward
- Ellen, a citizen of California, was seriously injured in an automobile accident while driving in California. She was injured due to the negligence of Sara, a citizen of Arizona, who ran a red light at an intersection. Ellen is seeking 1.5 million in damages. 1. Where may Ellen bring her suit? 2. Discuss the process Ellen would have to follow in order to fully litigate her claim. 3. If Sara is granted summary judgment at the trial court level, what may Ellen do next? Explain her options.arrow_forwardTeresa and Kensington enter into an employment contract that contains an unenforceable arbitration clause. Teresa sues Kensington, but Kensington wants the contract to remain effective. How can the court rule that the contract is still valid? a. If the contract contains an integration clause, the court may delete the unenforceable clause and enforce the rest of the contract. b. If the contract contains boilerplate, the court may delete the unenforceable clause and enforce the rest of the contract. C. If the contract contains a severability clause, the court may delete the unenforceable clause and enforce the rest of the contract. d. If the contract contains representations and warranties, the court may delete the unenforceable clause and enforce the rest of the contract.arrow_forwardA co-worker of Illinois licensee Mona shared a client’s confidential information with her and asked Mona not to tell anyone. Instead of keeping it to herself, Mona gave the information to another licensee. Which statutory duty has been breached? Adhere to the brokerage agreement’s terms Employ reasonable skill and care in performing brokerage services for the client Keep all confidential information provided by the client confidential Serve the client’s best interestsarrow_forward
- BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage LearningEssentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage LearningAccounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
- International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education