Question

2. Jack Thomas, who live in Minnesota, and Sandy Silver, who live in Oklahoma, each purchased $92,000 worth of securities at the local offices in their home states from Comprehensive Financial Stockbrokers, Inc. Comprehensive is incorporated in Maryland with its principal place of business in Minnesota. Jack and Sandy feel they were a victim of fraud perpetrated by Comprehensive and would like to sue. These two cases deal only with state issues. Discuss the accuracy of the following statements:

a. Thomas is able to sue Comprehensive in a Minnesota state trial court. Please explain.

b. Thomas can sue Comprehensive in a federal district court in Minnesota. Please explain.

c. Silver can sue Comprehensive in an Oklahoma federal district court. Please explain

Answer 1

Refer a below image for the above mentioned case, in a detailed way of explanation.

Answer: to sue comprehensive in a Requirement G o Minnesota stae Thomas trial is able Court: * yes. You can always sue for fraud in State Court There are sufficient minimum Contacts with that State Since Comprehensive financial stock brokers inc, principal place of business is located there. comprehensive in a federal Requirement 16: district court Thomas Can Sue in Minnesota : & Thomas Cannot Sollessfolly Sue comprehensive for fraud in federal district Court because the only possible to would be diversity of citizenship sime no federal aquestion is involved there is no diversity in this case because Thomas and comprehensive are both cikzens of Minnesota a A corporation is a citizen both of the State of incorporation and of its principal place of business. Requirement ©: Silver can Soe comprehensive in an Oklahoma federal district court: * In this case, silver can claim diversity of citizenship because comprehensive is not a citizen of oklahoma. The more fact that a corporation does business in a state does not make it a Citizen of that state. so it Silver has suffered more than & 75ooo in damages, this loss coupled with diversity of likzenship - would make her etgible to sue comprehensive in a federal district court. The case does not tell us how much he loss is, however, so the facts are insufficient to make a proper determination.