FOR GRA+DE PLUS "ONLY

Example Background Facts:  Assume GC solicits cleaning contracts aggressively by advertising in Maryland, Delaware, Virginia, West Virginia, Pennsylvania, and the District of Columbia using print media, TV, radio, and the internet.  

Also, assume GC aggressively advertises and solicits, via the internet, sales in all states for resale of EPI products that GC has purchased. 

Example Scenario Facts:  Assume GC contracted with ABC Corporation (ABC), incorporated in Virginia, to clean the company offices in Virginia.  ABC paid for the cleaning, but after the cleaning, ABC was dissatisfied and sued GC in Virginia to recover the costs of the cleaning. 

1.   Applying the background and scenario facts, analyze whether the Virginia court could have jurisdiction to hear the case, and why.   

The background and scenario facts tell us that GC solicits cleaning contrast aggressively in many states using different advertising methods, however we are not provided the information that help us understand where GC has been incorporated. If GC has been incorporated in Virginia, the Virginia court could have jurisdiction to hear the case. However, if GC has been incorporated in a different state, the case will have to be brought to a federal court as the federal judicial system is uniform throughout the United States and can hear the case under the diversity of citizenship jurisdiction (or diversity jurisdiction).

According to our textbook, "There is also a broad category of cases heard in federal courts that concern only state legal issues—namely, cases that arise between citizens of different states. The federal courts are permitted to hear these cases under their so-called diversity of citizenship jurisdiction Subject matter jurisdiction in federal court where the plaintiff is a citizen of one state, no defendant is also a citizen of that state, and the amount in controversy exceeds $75,000. (or diversity jurisdiction). A citizen of New Jersey may sue a citizen of New York over a contract dispute in federal court, but if both were citizens of New Jersey, the plaintiff would be limited to the state courts. The Constitution established diversity jurisdiction because it was feared that local courts would be hostile toward people from other states and that they would need separate courts. In 2009, nearly a third of all lawsuits filed in federal court were based on diversity of citizenship. In these cases, the federal courts were applying state law, rather than taking federal question jurisdiction Federal court subject matter jurisdiction based on a complaint that uses a federal statutory, regulatory, or constitutional law as a cause of action., where federal law provided the basis for the lawsuit or where the United States was a party (as plaintiff or defendant).”

References:

Business Law I. Chapter 3: Courts and the Legal Process. Retrieved from https://saylordotorg.github.io/text_advanced-business-law-and-the-legal-environment/s06-courts-and-the-legal-process.html