Question

Sue, a resident of the state of New York, is visiting her aunt in Iowa. On her way, her car is hit by Jerry, a resident of the state of Iowa who is drunk. Sue is injured in the accident. Which of the following actions is Sue allowed to take?
a. Sue can file a case against Jerry only in the Iowa state court as this is a matter that involves state negligence law.
b. Sue can sue Jerry and bring the case to Iowa state court provided that the dollar amount of the controversy exceeds $75,000.
c. Sue can file a case against Jerry in the New York state court as she is a resident of that state.
d. Sue can sue Jerry and bring the case to Iowa federal court as this is a case that involves diversity of citizenship.

Answer 1

Answer:

D) Sue can sue Jerry and bring the case to Iowa federal court as this is a case that involves diversity of citizenship.

Explanation:

Diversity of citizenship means that the parties involved in a lawsuit are citizens of different states (within the US) or are citizens of different countries. If a company is involved in a lawsuit, its citizenship is defined as where the company was incorporated or where does it carry its normal business operations.

In this case since Sue is a citizen of the state of New York and Jerry is a citizen of the state of Iowa (diversity of citizenship applies), Sue can choose to sue Jerry in a federal court since the citizens of two different states are involved.