Jose and Quincy live in Massachusetts and Victor lives in Rhode Island. The three of them co-wrote a song and it skyrocketed to the top of the charts. They have a valid, written agreement about splitting the profits. The royalties' funds come directly to Victor, and Victor has the responsibility for splitting the profits according to the agreement and sending monthly checks to Quincy and Jose.

Royalties have been coming in monthly. However, Jose has not received payment from Victor in over three months and believes that Victor and Quincy are cheating him by splitting and keeping his share of the profits. Jose filed suit against Quincy and Victor in the U.S. District Court for the District of Rhode Island for $250,000.

1. Does the U.S. District Court for the District of Rhode Island have subject matter jurisdiction?
2. Explain your answer.