Class 10 - 01-23-07 - Question #5

Facts: Pamela purchased a used car in San Diego. She told the car dealer, Donny, that she would be permanently moving to the east coast in a few months. He was hesitant, however, about this car's ability to make the trip. Donny had unsuccessfully tried to sell her a new car, which would have no problem making the cross-country trip. Pamela had almost completed this trip, when her car unexpectedly burst into flames in Maryland. It was parked at a gasoline station, while Pamela was inside paying for her gas. Pamela was not injured by the fire. She was distressed as a result of the fire, just a few yards away. Pamela then rode a bus to New Jersey, where she retained a lawyer. Her lawyer filed a money damages law suit in a New Jersey federal court against Donny, who is domiciled in California.

Assume that the applicable New Jersey statute of limitations (SOL) is one year from the date when the car burst into flames. Assume that in order to satisfy the New Jersey SOL, a plaintiff must both file and serve process on a defendant within one year from the date on which the claim arises. This complaint was filed exactly one year from the gas station incident. Donny was served six months later, after he had closed his dealership and moved to another city. FRCP 3 provides as follows: "A civil action is commenced by filing a complaint with the court." The parties are now engaged in a hotly contested debate about whether state or federal law governs the SOL issue.

Donny's lawyer files a timely motion, requesting dismissal on the following grounds:

(1) lack of subject matter jurisdiction;

(2) lack of personal jurisdiction;

(3) failure to diligently prosecute the case; and

(4) failure to comply with the statute of limitations.

Question: How should the court rule on Donny's motion?