1. You have two (2) hours for this exam. It is recommend you spend one hour
on each section.
2. This is a closed book exam. You may not consult any notes, books, or other materials, nor may you discuss the question among yourselves or with any other persons.
3. There are 2 parts to this exam:
b) PART 2 consists of one (1) essay. This segment is worth 1/3 of your grade.
4. Write your exam number on your exam envelope. Put your correct class section and student exam # at the top of this page, each page of questions, each blue book, and the “ParSCORE TEST FORM.” Do not use your name, student ID number or Social Security Number on any exam materials.
5. If you are hand-writing your essay answer, please write in the blue book(s) provided. Please write on one side of each page, and on every other line. Please write legibly.
6. At the conclusion of the exam, return all exam materials to the exam envelope and submit it to the proctor. Do not seal the envelope. Students who do not return all exam materials at the end of the exam may not be graded.
GOOD LUCK!
II. ESSAY QUESTION
Paula Payne, a resident of San Francisco, California , while driving through Reno, Nevada, on August 24, 2003,was hit by a Dexterbilt tractor trailer (truck) that failed to stop at a red light. Dan Driver, a resident of Boulder, Colorado was the driver of the truck, which is owned by Dawson Drayage, Inc. Dawson Drayage, Inc. is incorporated in Arizona and has its principal place of business in Phoenix, Arizona. As a result of the accident, Paula suffered extensive physical injuries. Dexterbilt, Inc., is a Colorado Corporation, whose headquarters and principal manufacturing plant are located in Bakersfield, California.
Paula Payne brought a civil action, based on negligence, against Dawson Drayage and Dan Driver in the 2nd Judicial District Court (a Nevada State Court) located in Reno, Nevada. Count 1 of the complaint stated a cause of action based on Nevada common law negligence. Count 2 of the complaint stated an alternative cause of action based on negligence per se. This cause of action was based on a Nevada statute that provides that if a defendant in a motor vehicle suit violated either a federal or state safety statute thereby causing injury to another, the defendant is negligent per se. Count 2 specifically alleged that Dawson Drayage violated the Federal Highway Safety Act (FHSA) by failing to have the Dexterbilt truck inspected semi-annually as required for interstate operation, which inspection would have disclosed a hydraulic brake failure, which failure caused the accident. The FHSA provides a comprehensive scheme of administrative enforcement, and specifies that no private right of action exists for the violation of FHSA by a trucking company.
Following service, Dawson Drayage and Dan Driver removed the case to the U.S. District Court, District of Nevada, located in Reno, Nevada. Paula Payne immediately moved to remand, arguing that the federal court lacked jurisdiction over the subject matter. The motion was denied.
Dawson Drayage and Dan Driver then moved to transfer the case from the U.S. District Court, District of Nevada to the US District Court of Arizona, located in Phoenix. Paula Payne opposed the motion. The motion was granted.
Dawson Drayage and Dan Driver filed a cross-claim against Dexterbilt alleging that the hydraulic brake failure was caused by a manufacturing defect and that they should be indemnified for any damages recovered by Paula Payne. Dexterbilt moved to dismiss the Dawson Drayage and Dan Driver cross-claim, arguing that the court lacked subject matter jurisdiction. The Court granted the motion.
Please discuss whether the courts ruled correctly in:
1) Denying Paula’s motion to remand;
2) Granting Dawson Drayage’s and Dan Driver’s motion to transfer
venue; and
3) Granting Dexterbilt’s motion to dismiss the Drayage and Driver cross-claim.
END OF EXAM