Author Question: Allegheny Airlines is incorporated in Delaware and has flights throughout the states of ... (Read 58 times)

skymedlock · **on:** Jun 24, 2018

Allegheny Airlines is incorporated in Delaware and has flights throughout the states of Pennsylvania, Ohio, West Virginia, New Jersey, New York, and Connecticut, and also in Washington, D.C. Wayne Jones, a resident of Las Vegas, Nevada, is severely injured when an Allegheny flight carrying him from Pittsburgh to Johnstown, Pennsylvania, crashes on landing. Jones has damages of over 250,000. In what court can Jones properly bring suit and where?

Question 2

The Alabama Attorney General recently filed suit in federal court in Montgomery, Alabama, alleging that Maytag secretly reconditioned defective microwave ovens at its Magic Chef plant in Anniston, Alabama; altered their serial numbers; and sold them as new. Janis Cooper, a vice president for Maytag, says the company is reviewing its procedures at the plant and that Maytag considers the trust of our customers very important. Regardless of whether the allegations are true, what problems will Maytag experience as a result of the incident?

enass · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

There is diversity and a claim in excess of 75,000, so federal district court is appropriate. The location is either Pennsylvania (site of the crash) or Delaware (principal place of business). Allegheny could not be required to defend a lawsuit in Nevada since it has no contacts there.

Answer to Question 2

General loss of consumer trust; public relations difficulties; drop in sales; case is an excellent illustration of how even the taint of unethical behavior can be very costly to a firm.