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Law: Alternative Dispute Resolutions Essay

1195 words - 5 pages

Law is defined as any system of regulations that governs the conduct of the people of a community, society or nation, in response to the need for regularity, consistency and justice based upon collective human experience (dictionary.law.com). This means that laws were created as fair system to help society to keep the peace, shape morals, support social policies, encourage cooperation between different entities, and to maximize individual freedoms. This case in particular involves a breach of a service contract between James’ painting business and Stan. The business dictionary defines a contract as a voluntary, deliberate, and legally binding agreement between two or more competent parties (businessdictionary.com). Because this job was under contract and James accepted a down payment, Stan has every single constitutional right to sue and take legal action against James for nonfulfillment.

Since James lives in Maryland but runs his painting business out of Virginia, and Stan lives in Virginia but works in Maryland, this case implicates a diversity of citizenship. This means that this case involves citizens of two different states or countries. Unless this contract has either a choice-of-law or a forum-selection clause, which are contract provisions that designate either a certain state’s law to be applied or a certain state’s court to hear any dispute concerning the nonperformance of the contract, the Virginia state court should hear this case base on in rem, and venue jurisdiction. First, in rem jurisdiction because Stan’s property is located in State of Virginia and the court have jurisdiction over property found within the state; second, venue jurisdiction because the Virginia state is located closest to where the incident happened and parties reside. Based on all this information, I would suggest to Stan to sue or file a legal complaint against James at the Virginia state court. Stan must not to take this case to the state federal court because even though this case involves a diversity of citizenship, the federal district court has only jurisdiction to hear cases when the amount of controversy is over $75,000. In this case, Stan just wants to recover the money he paid James as a down payment, and possibly any additional economic damages or costs associated with finding a new contractor and hiring legal advice. In addition, I don’t foresee the total amount of damages going over $75,000, and because of this, I think the best course of action for Stan is filling a lawsuit against James at the Virginia state court. In this instance, Stan as the plaintiff, will exercise his in personam jurisdiction to summons (court order) James, as the defendant, to appear in court to answer the complaint for the breach of contract.

Since the 1980s and early 1990s, many people became increasingly concerned that the traditional method of resolving legal disputes in the United States, through conventional litigation, had become too expensive, too slow,...

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