Question

Netty owns an ice cream trucking business in Texas and is looking for a few new trucks to add to her ice cream fleet. She buys three ice cream trucks, each valued at $40,000, from Ben & Jerry Ice Cream Trucks. However, when Netty receives the trucks, she finds that they are in a state of serious disrepair (they are ‘lemon’). When preparing to bring a lawsuit against Ben & Jerry Ice Cream Trucks, Netty finds out that the (Ben & Jerry Ice Cream Trucks) partnership was created in Vermont, where Jerry still lives, and Ben now lives in Texas. Should Netty file her claim in a state or a federal court?

Answer 1

Federal courts have subject matter jurisdiction in only two kinds of cases. Firstly cases that arise under federal law and secondly diversity of citizen cases.While filing the case Netty found out that Ben and Jerry partnership was made in Vermont where Jerry still lives and Ben now lives in Texas . So Netty is suing a citizen of a different state . So this is a case of Federal diversity jurisdiction . So Netty should file her claim in a Federal court.