Posted: November 9th, 2016

Can the Arizona state court impose jurisdiction over World Hotels to bring the company to court in Arizona? a) No, because the subject of the lawsuit took place in a foreign country

Scenario: Jones, a resident of Arizona, booked reservations for a vacation at WorldHotels, Inc. in Cabo Mar, Mexico. World Hotels is an international hotel chain incorporated in Delaware with hotels in North and South America; World Hotels has no hotels in Arizona but does advertise and book reservations for all its hotels over the internet, in any state. World Hotels has booked reservations in the past with residents of Arizona. While a guest in the hotel in Cabo Mar, Jones was walking across the hotel lobby, and slipped and fell on the wet marble floor that had been just washed by the maintenance staff. The staff had placed a “wet floor” sign on the lobby floor by the side wall of the lobby. Jones was taken to the nearest Mexican hospital where surgery was necessary to place a pin in his broken leg. Anxious to return home and see his regular doctor, Jones flew out of Mexico shortly after the surgery. He required two plane seats and an ambulance to meet him at various airports. His health insurance would not cover his hospital stay in Mexico as it was located outside the U.S. When back in Arizona, Jones was unable to work for 8 weeks and required another surgery to remove the pin. He also required several weeks of physical therapy. 24. Jones wants to sue World Hotels, Inc. for negligence for $450,000 to recover all his medical expenses in Mexico and the US; for $50,000 for the cost of the plane trip from Mexico to Arizona, the 2 plane seats and ambulance costs in various airports; $10,000 for 8 weeks of lost wages; and $50,000 for pain and suffering resulting from the injury. Can he sue in federal court? a) Yes, because federal court always has jurisdiction over citizens of different states. b) No, because federal court does not have jurisdiction in cases that do not involve federal laws. c) Yes, because the federal court may have jurisdiction over citizens of different states and the lawsuit involves damages greater than $75,000. d) No, because the federal court has no jurisdiction over an accident that occurred in Mexico. 25. It would be easier for Jones to bring the lawsuit in Arizona state court, but he wonders if the court can get World Hotels to come to Arizona. Can the Arizona state court impose jurisdiction over World Hotels to bring the company to court in Arizona? a) No, because the subject of the lawsuit took place in a foreign country. b) No, because the corporation does not have sufficient minimum contacts with Arizona to allow the Arizona court to use the long arm statute to establish jurisdiction in Arizona. c) Yes, because the Jones is a resident of Arizona and he is the plaintiff in the lawsuit. d) Yes, because World Hotels has sufficient minimum contact with the state of Arizona to justify the court’s use of the long arm statute.