Question 2. David Wallace, a resident of Idaho, and Catherine Davis, a resident

Question

Question 2. David Wallace, a resident of Idaho, and Catherine Davis, a resident of Arizona, each bought $90,000 worth of bonds at local offices in their home states from Premier Brokerage, Inc. Premier, Inc is incorporated in New York with its principal place of business in Idaho. Both Wallace and Davis believe that they were cheated by Premier and would like to sue it for fraud. There are no federal question is at issue in this case, explain the accuracy of the following statements: 1. Wallace can sue Premier in an Idaho state trial court. Please explain. 2. Wallace can sue Premier in a federal district court in Idaho. Please explain. 3. Davis can sue Premier in a federal district court in Arizona. Please explain

Explanation / Answer

1. State courts have general Jurisdiction and they can hear almost all cases except cases which is against United states and those invoving certain Specific Federal Laws.

So in this case wallace can sue Premier in an Idaho State trail Court.

2. Federal courts have limited jurisdiction in terms of cases as they hear the cases only which have federal questions cases that arise under a federal or diverse citizenship of the parties.

As mentioned in the question that There are no Federal question at issue in this case and also wallace is resident of idaho and Premier Brokerage inc as its Principal place of business in idaho so there is no diverse citizenship of the parties as both belongs to Idaho. Thats why Wallace can not sue premier in a federal district Court in Idaho.

3. In this Question Though there is no presence of federal question but there is presende of diverse citizenship of the parties, as Davis is from arizona and premier's principla place of business in idaho.

In this Question Davis can sue premier in a federal district court in Arizona.

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