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Energy-Auto Inc. Essay

Read the Hypothetical Case Problem #1 at the end of Chapter 1 and respond to these questions:

1. If Javier sued Energy-Auto Inc., identify who would be the plaintiff and the defendant. 2. In which state or states can the suit be brought?
3. Assume that Javier incurred $100,000 in damages.

a) Analyze whether the suit can be brought in federal court

b) Explain the advantages and disadvantages of federal versus state court for this type of suit. Case 1. Javier is traveling from his home in New York to Dallas, Texas. While driving through Oklahoma, his brakes fail and he is injured in the ensuing crash. Javier wants to sue the maker of his car, Energy-Auto Inc. Energy’s headquarters is in New York. It does not have any dealerships in Oklahoma or do any advertising in Oklahoma. In this case Javier was driving his car from New York to Dallas, Texas when his brakes failed in Oklahoma where he injured himself. Javier would be the plaintiff because he is the one suing, and Energy- Auto Company would be the defendant in this matter because this company is the one being sued. The suit would then have to be brought in the state of New York considering that this company does not have dealerships in Oklahoma nor does it do any advertising. This would give personal jurisdiction to New York and not Oklahoma. Had this Auto Company advertised or had any dealerships in Oklahoma then this case could be brought to the courts of Oklahoma for jurisdiction. New York courts can refuse to hear this case and with Javier being a resident of Dallas could possibly have his case heard there considering the fact that Javier has incurred $100,000 in damages he could possibly be immobile from an accident like that. This case can also be brought to federal court for the simple fact that both the plaintiff and defendant are both out of state parties, and would be heard at federal court under diversity jurisdiction. The advantage of federal versus state court would be a judge wouldn’t lose its job for making the wrong ruling in this case which is why its sent to federal court and rulings are heard from a judge that has been appointed forever or until he/she is impeached or reaches retirement. This allows in my opinion, room for fair equal treatment. Disadvantage would be state vs. federal court is the state wouldn’t have subject matter jurisdiction in this case and wouldn’t know how to handle it.


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