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IRAC

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Please help me to write solution of this case. It should be in 4 steps of the IRAC method in your answer. Which is: Fact, Rule, Application & Conclusion (should contain a minimum of 300 words which is one page).

Case Problem: Joe, a resident of New Jersey, wants to open a restaurant. He asks Kay, his friend, an experienced attorney and a New Yorker, for her business and legal advice in exchange for a 20 percent ownership interest in the restaurant. Kay helps Joe negotiate a lease for the restaurant premises and advises Joe to organize the business as a limited liability company (LLC). Joe forms Cafe Ole, LLC, and with Kay's help, obtains financing. Then, the night before the restaurant opens, Joe tells Kay that he is "cutting her out of the deal." The restaurant proves to be a success. Kay wants to file a suit in a federal court against Joe and the LLC. Can a federal court exercise jurisdiction over the parties based on diversity of citizenship? Explain.

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IRAC is actually Issue, Rule, Application and Conclusion.

The rule here is diversity Jurisdiction which can only be exercised when the parties are from different jurisdictions (states) (one being a citizen of the United States of America) when the claim is filed and the claim has to exceed $75,000 (not the actual amount awarded but the possible amount that could awarded). The claim also cannot be a domestic claim (divorce, ...

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