With respect to the book The Buffalo Creek Disaster httpwwwa

With respect to the book:

The Buffalo Creek Disaster

http://www.amazon.com/The-Buffalo-Creek-Disaster-Coal-Mining/dp/0307388492

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What was the relationship between Buffalo Creek Mining Company and Pittston Co?

Was this lawsuit proper in a West Virginia court? In a Federal court? What difference did it  make whether the case ended up in Federal or State court?

Explain the meaning of diversity jurisdiction. Why was the corporate veil issue so important?

Solution

The Buffalo Creek Mining Company (BCMC) is a subsidiary firm of the Pittston Co.

This lawsuit would be proper to file in District court of West Virginia as compared to the Federal court. The differences between procedures and results for both the courts are shown below:

If the case would be filed in federal court on the parent company i.e. Pittston Co, the company would transfer the case to West Virginia as BCMC was acting on behalf of the company in that region.

Contrary to federal court, in district court it was easy to find out the judges who would sit on the case. To pierce the corporate veil of the company, the lawyer needed to find a judge that would be more receptive to the victim’s concept.

Diversity jurisdiction is a kind of subject matter jurisdiction in civil procedures, where the district court in the federal judiciary has the power to hear a civil case. The parties involved in the case can hold diverse citizenship. Corporate veil issue was very crucial for the case because it was important to hold the parent company i.e. Pittston Co. liable for the damages caused to the residents of West Virginia\'s Buffalo Creek hollow.