Cooper sues Company A in state court in South Carolina, where he lives, for negl
ID: 2821651 • Letter: C
Question
Cooper sues Company A in state court in South Carolina, where he lives, for negligence alleging personal injury and property damage of $100,000 after a truck driven by an employee of Company A rear-ended his pickup truck. Company A is incorporated in Delaware, has its headquarters in New York, but does a substantial amount of business in South Carolina. Claiming diversity of citizenship, Company A seeks removal to federal district court, but Cooper opposes the motion. Which of the following is true regarding whether the case may be properly removed to federal district court?Explanation / Answer
A party is said to be citizen of thetstate in which the company is incorporated or the principal place of business is. Here Company A is incorporated in Delaware and hence both are in different states and thus jurisdiction should pass on to federal Court to avoid any bias of state court for the local resident.
Going by this the second option is right as the amount involved exceeds $75000 i.e the min limit for diversity cases and company A is incorporated in a different state the case may be removed to federal court irrespective of where the headquarters or anything else is.
Option 2