Jurisdiction and settlement offers

Assume that you live in California and are returning from a vacation in Texas. While traveling home by car,

you stop for a bite to eat in a small diner located in Arizona. After you purchase your meal, you attempt to

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sit down and the chair underneath you collapses, sending you to the floor. The fall to the floor results in a

broken wrist and serious injury to your back and neck. The injuries you sustain require many weeks of

medical treatment and fifteen (15) weeks of missed work. Medical bills as a result of your fall are upwards

of $50,000 and counting, and you have lost wages in the amount of $15,000. You intend to sue the owner

of the diner.

Can you bring your state-law based personal injury case in a federal court? Why or why not?
As a resident of California, suing for an injury that occurred in an Arizona restaurant, does a California

court have jurisdiction over the case? What additional information might be helpful to bring a case against

the Arizona restaurant in a California court?
Assume you end up trying the case and at the end of the trial, the jury awards you $125,000 ($50,000 for

medical expenses, $15,000 for lost wages and $60,000 for pain and suffering). After the trial, the attorney

for the diner approaches you and your attorney and offers to settle the case on the spot for $75,000.

Should you consider accepting the settlement? Why or why not?

Sample Solution

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