Examination # TULANE LAW SCHOOL

FALL SEMESTER December 7,2012

2:00PM

5:00PM

FINAL EXAMINATION IN CIVIL PROCEDURE

PROFESSOR JOEL WM. FRIEDMAN

This is an open book exam. You may use any materials other than commercially prepared outlines or other study aids that you did not create. You will be given three (3) hours to compose your answer. If you are typing your answer on a computer, your answer cannot be more than 2750 words long. If you are handwriting your answer, please write on both sides and every line of each page and your answer cannot be more than THIRTEEN (13) sides of a page, writing on every line and on both sides of every page. Please DO NOT write in the top or side margins
of the page. The exam consists of two (2) pages, this page plus one (1) additional page. Ace Wilde, a life-long resident of Jefferson City, Missouri, had a penchant for gambling. In early September,2012, Wilde saw several advertisements in the Jefferson City newspaper and on the local television station for the Creole King Casino located in East St. Louis, Illinois. Among other things, these weekly advertisements always say "Join the thousands of your neighbors who try our slots every year and who win hundreds of thousands of dollars at our crap tables." These ads also mention that the casino offers free bus transportation from a variety of locations in Jefferson City to the casino. The company also donates tens of thousands of dollars each year to charitable organization located in Jefferson City. So Ace decided to go to the casino and try his luck. On October l,2OI2, Wilde drove his car from his home to the casino and sat at a blackjack table for several hours where he was served several alcoholic drinks. Bv the end of the night, he had won $18,000. He cashed out his winnings at the cashier's station in public view, filled out a tax form, and walked out of the casino to his car. He claims that he saw two men watching him as he cashed out his winnings and that they followed him to his car. When Wilde arrived home, he got out of his car and was assaulted and robbed by these two men. Creole King Casino, Inc. is incorporated under Delaware law and has its headquarters in Rlno, Nevada. The company also owns casinos in Nevada and New Jersey. Wilde brought suit against Creole King in state court in Jefferson City assertin! two causes of action. He seeks $500,000 in damages, alleging that the casinons negligently deficient security procedures in the casino caused him to be followed, assaulted, and robbed. His also claims that Creole King's conspired with members of organized crime families in Missouri and New Jersey to intimidate him and some other Creole King customers in violation of RICO, the federal racketeering statute, for which he seeks damages in the amount of $75,000. Ace's estranged wife, Deuces, a citizen of Missouri, also filed a negligence claim against Creole King in this same civil action, seeking damages in the amount of $50,000 for the loss of income she suffered as a result of her husband's injuries caused by the assault. Two weeks after it received a copy of the complaint, Creole King removed the case to the federal district court in Jefferson City (E.D.Mo.). It then filed two claims in this lawsuit against each of two brothers, King and Jack O'Spades, the two men who allegedly assaulted and robbed Ace. The first claim asserted against each brother seeks indemnification for any liability imposed in connection with Ace's negligence claim. The second cause of action seeks to recover $65,000 in gambli1g debts owed by each of these gentlemen to Creole King. King O'Spades is a lifelong resident of New Jersey, while his brother Jack is a citizen of Missouri. They both deny ever being at the casino or ever assaulting Ace. King further claims that he has never been in Missouri. Creole King Casino also asserts a property conversion claim against Ace, alleging that he was counting cards and using other gambling "systems" to defraud the casino at the blackjack table. In connection with this claim, the casino seeks to recover the $18,000 in "winnings" that it paid out to Ace before he left the casino.
The Missouri legislature has enacted the following statute:

corporation, or other entity who either commits a tortious act within this state or undertakes a significant amount of commercial activity within the state".
Section 501 of RICO provides as follows:

"The courts of this state shall have personal jurisdiction over any

person,

"All civil actions brought to enforce any portion of this statute shall be filed in the federal district court for the district in which either the alleged conspiracy
occurred or where the defendants reside."

You are the law clerk for the federal judge to whose docket this case has been assigned. Assume that all parties timely filed all relevant motions. Draft a memorandum to the judge discussing AZL possibly relevant bases for dismissing and/or remanding any or all of the claims and parties in this lawsuit. Include in your memorandvrn ALL of the arguments that could be made in support of and in opposition to these bases for dismissal as well as your recommendation as to how each should be resolved.

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