Roy Saunders, Esq., and his paralegal were discussing the new school bus versus dump truck collision case they had recently taken on with the partners and litigation staff on a conference call linking the two offices. The firm agreed to represent all the passengers and the families of the children injured in the accident. As part of the initial interview, they obtained the initial state police investigation report with the names and addresses of all parties involved, as well as those of the potential defendants. It was clear to Mr. Saunders that there was a potential question of diversity of citizenship, and the damages were far more than the requirement under the federal rules for jurisdiction. The partners had to decide which of the potential courts was most desirable for bringing this action. One of the partners expressed concern as to whether the clients would be best served by filing a suit in one of the state courts or in the federal court. The case strategy consumed much of the scheduled time for the conference. One of the most experienced personal injury paralegals asked if the young firm had the resources and ability to try a case of this magnitude against the combined resources of the insurance companies for the trucking company, school bus company, and school district. One of the partners rhetorically asked if they should try to quickly settle or seek arbitration.

1. What are the potential courts in which the case might be filed? Explain the basis for jurisdiction and venue in each?

2. What factors should be considered in determining which court should be selected for filing suit?

3. Are there any ethical issues in deciding whether to try or settle cases?