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Example of Answer: Homework # 1 WALA # 1

WALA # 1

1. Diversity jurisdiction falls under the category of concurrent jurisdiction in federal court, and that

is where both the federal and a state court have subject matter and personal jurisdiction in a case. The

specific requirements for diversity are (1) the underlying legal action is based on state law, (2) the

parties are from different states, and (3) the amount in controversy, that is, the amount being sued for,

is in excess of $75,000.

2. In this matter an action was filed by Bill in state court for breach of contract. Ron, by motion, is

attempting to remove the case to federal court, and the basis for the motion is diversity jurisdiction.

Therefore, for it to be successful, the elements listed above must be met.

First, the underlying action is for breach of contract, and therefore, solely based on state law.

Second, Bill lives in California and Ron lives in Nevada; therefore they are from different states. Third,

Bill is seeking damages in the amount of $100,000. This is clearly in excess of $75,000. Given that the

requirements for diversity have been met, the motion should be granted and the case transferred from

state court to federal Court.

WALA # 2

1. A forum selection clause is a provision in a contract that requires all parties to resolve any

dispute in a court in a specific location, such as a specific state and/or a specific county/city within that

state. They are enforceable if (1) the parties have voluntarily agreed to it in the contract, and (2) there is

not some extraordinary circumstance unrelated to the convenience of the parties that would prevent

the transfer of the case.

2. David and Carol Smith entered into a contract with Happy-People Cruises for a cruise to Mexico.

The Smiths live in Arizona and Happy-People’s main offices are in Florida, and the cruise left from Los

Angeles. Contained in the contract was a forum selection clause that required all disputes related to the

contract to be litigated in Florida. Carol Smith sustained an injury on the cruise, and she filed a law suit

against Happy-People in the Federal District Court in Arizona. Happy-People has brought a motion to

change venue to Florida. The basis for the motion was the forum selection clause.

In analyzing these facts, there is nothing that would indicate the Smiths’ execution of the

contract was anything but voluntary. Additionally, there are no facts that would suggest there are any

extraordinary circumstances that would prevent its transfer. Given that, the forum selection clause is

enforceable, and the case should be transferred to Florida.