Case Summary: SG, a resident of Illinois, promoted boxing matches for SP, an Illinois corporation. He created the concept of “Battle of Ages” and tried to sell the idea to a person, GF. The negotiations between SG and GF fell through. GF, a resident of Nevada used the same concept to promote subsequent fights. SG filed a lawsuit against GF in a federal district court.
To find: The federal district court’s jurisdiction in trying the case.
Explanation of Solution
Explanation:
The federal district court could exercise jurisdiction in this case owing to the fact that the case involves diversity of citizenship. SG resided in Illinois and GF in Nevada. Diversity jurisdiction requires that the plaintiff and the defendant should belong to different jurisdictions and the controversy amount should exceed the pecuniary limit.
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The Legal Environment of Business: Text and Cases
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