Reference no: EM133201320

Question: Maryland State Court has personal jurisdiction over Clean, as they reside and do business in Maryland. In addition to the arguments of exclusive and subject matter jurisdiction, the diversity of citizenship jurisdiction is also relevant. Under this jurisdiction, the defendant can have the case heard in the federal court due to the fact that a plaintiff's state court may favor their resident in the case (Government Regulation and the Legal Environment of Business, 2012). Since Clean would most likely feel that filing in federal court would give them a better chance at winning their case, it would be recommended that a defense attorney ask for the case to be moved out of the state court. According to both the diversity of citizenship jurisdiction and the conflict of law principles, ABC's case against Clean would likely be a case of breach of contract, where Virginia law would be applied in the federal court based upon the location [state] where the contract was executed (Government Regulation and the Legal Environment of Business, 2012).

Applying the concept of personal jurisdiction to the potential case of Clean v ABC leads to the conclusion that the Virginia Court does not have personal jurisdiction over Clean. Personal jurisdiction of Clean resides in Maryland. Clean is located in Maryland, where it is incorporated and has its principle place of business, and does not have a physical location in Virginia. Although ABC is located in Virginia, this does not grant them personal jurisdiction over Clean. The case will have to be brought to federal court because of the concept of exclusive jurisdiction. Exclusive jurisdiction is established through Article III of the US constitution, with the relevant verbiage being controversies between citizens of different states (Government Regulation and the Legal Environment of Business, 2012). The federal court will also have subject matter jurisdiction in this case. Article III covers the necessary jurisdiction to hear the case because the cases is a controversy between citizens of different states.