CIVIL PROCEDURE QUESTION2

Buyer and Seller were both citizens of State X, where they attended State University. Just before they graduated, Buyer purchased Seller's car for $2,500. At the time, Seller told Buyer that the car was "in good working order" and that it was a "safe, reliable little car." Seller knew, however, that a local mechanic's inspection of the car had revealed that its brakes were so worn that they presented a significant safety hazard and required immediate replacement. Instead of informing Buyer of the danger, Seller showed Buyer the mechanic's bill and told him that the car "has just been checked out."

After graduation, Buyer decided to move permanently to Big City in State Y. Buyer decided to use the car he bought from Seller for the move. He believed that in a few round trips he could transport all of his belongings to his new apartment in Big City. On his way back to his State X apartment after his first trip to his new apartment in Big City, Buyer was seriously injured in a one-car accident on a highway in State X. Friend, a citizen of State X and a passenger in Buyer's car, was the only witness to the accident. He and Buyer will testify that the accident happened when the brakes failed as Buyer attempted to negotiate a curve in the highway.

After weeks of hospitalization in State X, Buyer settled permanently in his apartment in Big City in State Y. Having discovered Seller's deceit, Buyer sued Seller in the U.S. District Court for the District of State X, seeking to recover $500,000 under State X tort law for his injuries and lost wages. In addition, Buyer claimed Seller's misrepresentations constituted a breach of warranty under State X contract law and sought recovery of the $2,500 paid for the car.

One week after the suit was filed, Seller also decided to relocate from State X to Big City, taking a job there and assuming State Y citizenship.

Seller has filed a motion to dismiss Buyer's two claims for lack of subject matter jurisdiction. Seller has also moved for a change of venue to the U.S. District Court for the District of State Y.

1. Should the court dismiss Buyer's tort claim, Buyer's contract claim, or both for lack of subject matter jurisdiction? Explain.
2. How should the court rule on Seller's motion for a change of venue? Explain.