Civil Procedure Questions & Answers

Question 1 – 5 are based on these facts:
Dan Yankee, a life-long resident of New York, comes to New Orleans for a Shriner’s convention. One night while imbibing in the Devil’s Brew, he tasted a local whiskey, Raging Cajun. Liking what he tasted, he bought a case of Raging Cajun to take back to New York. Upon his return to New York, Dan gave a bottle of Raging Cajun to his boss, Ben Bunkley, a citizen of New York. After work that evening, Bunkley decided to try the Raging Cajun and prepared himself a cocktail consisting of Raging Cajun and water. After three or four sips of his cocktail, Bunkley’s throat and stomach began having a severe burning sensation. He called his doctor who advised him to come to the hospital and bring the bottle of Raging Cajun with him. At the hospital it was determined that the bottle of Raging Cajun contained a high percent of acid. Bunkley was treated accordingly. He survived, but had to have part of his stomach removed and will talk in a law raspy voice the rest of his life. Bunkley’s doctor and hospital bills were in excess of $25,000.

Bunkley comes to you, an attorney in New York, and wants you to represent him in his personal injury action. He wants to sue for $1,000,000 to pay for his medical expenses and be compensated for his pain and suffering and permanent physical impairments. You agree to represent him and immediately begin making certain investigations. You learn that Raging Cajun is a product distilled by the Acadia Whiskey Company, a Louisiana corporation with its principal place of business in Louisiana. It distributes its products in Louisiana, Alabama and Mississippi. You learn that about 45% of all sales of Raging Cajun are made to New York tourists who take the product back to their home state and 50% of its sales are made to New Yorkers who purchase the liquor through Acadia’s highly interactive web site. Sales to New Yorkers account for in excess of $3,000,000 annually. In addition, you learn that Acadia Whiskey Company has $500,000 on deposit in a New York bank. Assume that the legislature in every state in the country has passed the following statute: The courts of this state shall have personal jurisdiction over an individual, corporation or other entity who, in person or through an agent:

(1) transacts business within the state; or
(2) commits a tortious act without the state causing injury within the state; or
(3) is personally served within the state; or
(4) owns property within the state.