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Starla Doe, a Texas resident, purchased investment bonds from Midland-Houston Savings and Loan (Midland). Midland experienced some setbacks and has now been taken over by

Starla Doe, a Texas resident, purchased investment bonds from Midland-Houston Savings and Loan ("Midland"). Midland experienced some setbacks and has now been taken over by the Resolution Trust Corporation of the federal government. Starla's bonds are now worthless (she purchased $51,600 of the bonds).

Starla's attorney advised her that she has a chance of recovery from the officers and directors for securities fraud only under the 1934 Securities Exchange Act. This is the course Starla's attorney recommends to her because it might allow for special damages if they can establish certain facts in court.

Despite its name, Midland is actually a Delaware corporation doing business with investors all over the country.

Based on those facts please answer the following two questions:

1. In what court could Starla properly file her suit and why?; and

2. Can the attorneys for the board and senior officers ask Starla's attorney what they advised her about the case? Why or Why not?

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