ABC is a multinational enterprise (MNE) incorporated in State X. ABC entered into a joint venture agreement with XYZ, an MNE incorporated in State Y, to jointly produce a new line of hydraulic equipment in ABC's new factory in State Z, a developing nation. ABC & XYZ have mutually agreed to have the law of State Y govern any disputes or concerns arising under the joint venture agreement. Shortly after the conclusion of the agreement, a wiring defect in ABC's factory caused it to burn to the ground, killing five tourists in the immediate vicinity who were nationals (citizens) of State Q. XYZ, fearing bad publicity, sued ABC to rescind the joint venture agreement. X,Y, & Z are all common law states, while Q is a civil law jurisdiction. 2. Should a civil lawsuit between ABC and XYZ be filed? Analyze the possible arguments and counter-arguments that counsel for either ABC or XYZ would reasonably make for having the case heard in the municipal courts of (a) State X or (b) State Y?
A civil lawsuit can be filed between ABC and XYZ because XYZ wants to rescind the joint-venture agreement and ABC may want to resist it. The counsel for ABC may argue that the suit be heard in state X because this is where ABC conducts its business extensively and the courts in state X have their jurisdiction in that state over ABC. Under Title 28 Ã?§ 1391 USC the venue of the suit should be in state X as this is the state in which ABC is located. The lawyer for XYZ may similarly argue that since XYZ is located in state Y, the suit should be heard in state Y. Again, he may quote USC Title 28 Ã?§ 1391 to support his contention.
However, the joint venture agreement contains a clause that "the law of State Y ...
This solution discusses jurisdiction for a civil lawsuit in 535 words.