Bar Exam (US) Civil Procedure: Question below is based on the following fact situation. Albert h...

Question

Question below is based on the following fact situation.

Albert had written a best-selling book called "The Trials and Tribulations of a First-Year Law Student." However, he began to suspect that the publisher, Beacon House, a Virginia corporation whose principal place of business is in that state, was not giving him an accurate accounting of his royalties. Albert invaded a meeting of the nine-member board of directors of Beacon House, where he found Don (a member of the board of directors and the president of Beacon House). When Albert verbally accused Don of cheating him by downscaling the number of Albert's books which had actually been sold, Don grabbed Albert by the shoulders and shouted, "Shut up, you idiot!" Albert then punched Don in the face and left. Albert went to the local newspaper (called "the Star ") and advised them that he had been cheated out of thousands of dollars by Don. The Star then printed a story reiterating Don's accusations, and warning writers of how easy it is for publishers to deprive them of an accurate accounting of royalties. The story mentioned that Don was the president of Beacon House. Albert is a citizen of Arizona, Don is a citizen of Massachusetts, and the Star is incorporated in New York and has its principal place of business in Arizona.

Assume that (1) Beacon House sued both the Star and Albert in the only U.S. District Court in Arizona for defamation, claiming damages in the amount $100,000, (2) the "mutuality rule" for collateral estoppel has been abandoned in this jurisdiction, and (3) a verdict was returned in favor of Beacon House in the amount of $50,000. Which of the following statements is correct?

AnswerChoose the correct answer.Choose all that apply. Correct Partially correct Incorrect Don't Know

  1. A
    Correct Answer
    The Star could not file a cross-claim against Albert, because they are citizens of the same state.
  2. B
    Correct Answer
    If Albert counterclaimed against Beacon House for an accounting on his royalties, he would not be entitled to a jury trial.
  3. C
    Correct Answer
    Don might be able to assert collateral estoppel offensively against the Star in a subsequent action for defamation against that entity.
  4. D
    Correct Answer
    Don would be barred from commencing an action against the Star or Albert, since he could have intervened in the present action ( Beacon House v. the Star and Albert ) without destroying diversity.
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