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An automobile accident occurred in State Y involving Pablo, Quincy and a vehicle driven by an employee of Diamond. The car in which Pablo and
An automobile accident occurred in State Y involving Pablo, Quincy and a vehicle driven by an employee of Diamond. The car in which Pablo and Quince were riding was a Hummer which they had purchased together for $85,000 (Pablo contributing $65,000 towards the purchase price, and Quince the remaining $20,000). The car was destroyed in the collision. Pablo and Quince are citizens of State X, and Diamond is a corporation organized under the laws of State Z, with its principal place of business in Y. It does business in all 50 states. One year after the accident, Pablo and Quincy sued Diamond to recover a total of $85,000 in damages for the loss of the car. Which of the following statements is correct? Question 20Select one: a. If this suit was properly commenced in a state court in State X, Diamond could not have the action removed to a federal court. b. If this action was filed in the U.S. District Court in State W, D could probably successfully have the action transferred to a U.S. District Court in State Y; but the federal court in State Y would have to apply the statute of limitation which the U.S. District Court in State W would have applied. c. Subject matter jurisdiction does not exist because neither Pablo nor Quincy had invested a sum in excess of $75,000 in the car. d. The parties do not meet the amount controversy
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