Yuna, suffered a personal injury while operating her tractor at home in California. She filed a negligence suit in federal court against the manufacturer, Jack Doe Tractor, Inc. Jack Doe Tractor is incorporated in Delaware with its principal place of business in Illinois. Yuna also sued the seller, Cali Equipment Inc, which is incorporated in California with its principal place of business in California. Yuna and Cali Equipment informally agreed to settle out of court, but the agreement was subject to approval by Cali Equipment's insurer. Before a final agreement was reached regarding settlement with Cali Equipment, Jack Doe filed a motion in federal court for dismissal for lack of subject matter jurisdiction.

 

Should the court grant the motion for dismissal based on lack of subject matter jurisdiction?

 

If Cali settles with Yuna, and Yuna dismisses the case against Cali before the court decides on the motion. Should the court grant the motion for dismissal based on lack of subject matter jurisdition?