Fire Smoke Alarm Systems For Business

In which court should the plaintiff file suit for alleged damages of over a million dollars?

Laaperi purchased a smoke detector manufactured by Black & Decker from Sears. One night, a short-circuit occurred in the Laaperi house and an electrical fire broke out. Because the circuit was shorted, the AC-operated smoke detector received no power and did not sound an alarm. As a result, Laaperi suffered extensive personal injuries and property damages. Laaperi filed a product liability suit under state law. Assume that Black & Decker is incorporated in Delaware and has its principal place of business in Charlotte, North Carolina. Laaperi lives in North Carolina, which is where the fire occurred and the alarm system was purchased. In which court should the plaintiff file suit for alleged damages of over a million dollars? A) North Carolina state court B) North Carolina federal court C) Delaware federal court D) Any of the above courts would have subject matter jurisdiction, but only the North Carolina courts would have personal jurisdiction. E) Delaware state court

A.

You have personal jurisdiction over a corporation both in the state where it is incorporated and where it has a principal place of business. Because there is a principal place of business in North Carolina, there is no diversity of citizenship, so you can’t sue in federal court. Delaware state court has personal jurisdiction, but would probably dismiss on forum non conveniens grounds because the harm, and sale both took place in North Carolina, and most of the relevant hard evidence is there as well.

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