How should the court rule on each motion

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Reference no: EM133654866

Problem: Plaintiff from State A entered into a contract with a State B Defendant whereby Defendant agreed to manufacture and deliver to Plaintiff 50,000 custom-made widgets by March 1. The parties' contract stipulated to liquidated damages in the amount of $100,000 and also contained an arbitration clause. When Defendant failed to deliver the widgets on time, Plaintiff was forced to seek generic widgets to fill its orders, losing a significant amount of money from cancelled orders and unhappy customers. Plaintiff sued Defendant in federal district court under diversity jurisdiction. Defendant then impleaded Switch Co. for indemnity, claiming Defendant's delay was wholly caused by Switch Co.'s failure to deliver the necessary materials to complete the manufacture of the widgets. Switch Co. was a State B corporation, with its principal place of business in State A. Upon being served with the third-party complaint, Switch Co. filed a motion to dismiss for lack of subject matter jurisdiction and for improper venue. How should the court rule on each motion?

Reference no: EM133654866

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