LPR, Inc. is an accounting firm that was incorporated in Florida, but has its headquarters (principal place of
business) in Cleveland, Ohio. It has satellite offices in several suburbs of Ohio, as well as Florida and
Arizona. Cleveland is the current firm headquarters. LPR rents office space in downtown Cleveland from a
company called Prime Space, LLC. The commercial lease agreement is in effect until December 2021, at
the rate of $5,550 per month. Prime Space is incorporated in Ohio. For a long time, LPR has felt that the
building has not been kept in the manner becoming of a professional office space. Further, the roof leaks
and the HVAC system never works. Due to some restructuring at LPR, it decides to move its corporate
headquarters from Cleveland to Florida. LPR decides to close its Cleveland office and move the operations
to its Florida office. Based on the condition of the premises, LPR believes that Prime Space, LLC has
breached its duties under the lease agreement, and that constructive eviction is their only remedy to leave.
Therefore, LPR writes a letter to Prime Space stating that due to the breaches of the contract, LPR is
vacating the premises as of December 31, 2018. LPR moves out of that location in December and re-
organizes its headquarters in Florida. Soon thereafter, Prime Space sues LPR for breach of contract,
alleging that LPR owes it for damages through the end of the term of the lease agreement. Prime Space
files its lawsuit in federal court in Cleveland, Ohio. Discuss the following:
- Does diversity jurisdiction exist to allow this suit to be filed in federal court in Cleveland, Ohio? Discuss
why or why not. - Does personal jurisdiction exist to allow this suit to filed in federal court in Cleveland, Ohio? Discuss why
or why not.
Sample Solution
