Assume that you live in California and are on vacation, traveling by car from California to Texas. You are injured in a motel room when the bed on which you are sleeping collapses, causing you to fall to the floor. You suffer substantial back and leg injuries, requiring many medical treatments and causing you to miss work for 15 weeks. Your medical bills total $50,000 and your lost wages total $15,000. You intend to sue the owner of the Texas motel. Can you bring your case in federal court? Why or why not?

Can you commence the case in California? What additional information might you need to answer this question?

Before the trial takes place, the attorney for the hotel approaches and offers to settle the case for $50,000. Should you consider accepting the settlement? Why or why not?

Do you think the owner of the motel would prefer to go through a trial or alternative dispute resolution (ADR) and why? If you believe they would prefer ADR, please discuss the type of ADR that would be most beneficial (negotiation, mediation, or arbitration) as part of your answer.