Operations Management legal analysis class Brenda, a resident of California, is driving her car in California, when she negligently hits a pedestrian, Steve, who is a resident of Oklahoma. Steve is injured in the accident and seeks damages for the cost of his medical treatment ($125,000). The case involves an issue of state negligence law. If Steve brings his case against Brenda in a federal district court in California, the federal court has subject matter jurisdiction to hear the case: Because the case raises a federal question Because there is diversity of citizenship and the controversy exceeds $75,000 Because there is long-arm jurisdiction Steve cannot bring his case in federal court