The Legal Environment of Business: Text and Cases
The Legal Environment of Business: Text and Cases
10th Edition
ISBN: 9781337535878
Author: Frank B. Cross; Roger LeRoy Miller
Publisher: Cengage Learning US
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Chapter 17, Problem 7BCP
Summary Introduction

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 $75,000 dollars and the parties had diversity of citizenship. Company C is organized under Ohio’s law and its principal business place is in Michigan. S is organized under the law of Oklahoma and its principal place is in Arkansas.

To find: The possibility of the court to exercise jurisdiction of diversity in this case.

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