Chapter 17, Problem 7BCP

Summary Introduction

Case summary: Company S LLC. operates an inn H in Arkansas. Company S purchased insurance from company C to cover any future damage. When a gas leaking from a heating element of swimming pool created a havoc in the building, company S filed an insurance claim to C, which it denied and asked federal district court for dispute resolution. Amount in controversy had exceeded $\text{\$}$75,000 dollars and the parties had diversity of citizenship. Company C is organized under Ohio’s law and its principal business place is in Michigan. S is organized under the law of Oklahoma and its principal place is in Arkansas.

To find: The possibility of the court to exercise jurisdiction of diversity in this case.