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Samuel Train, a Missouri citizen, brought suit in federal court in Missouri against Val Dermit, a citizen of the state of Illinois. The suit alleged that, while vacationing near Branson, Missouri Dermit had negligently run his small bass boat in front of Train's cabin cruiser . In trying to avoid what probably would have been a fatal collision for Dermit, Train ran his watercraft into a rock and it sank. Train alleges that the value of the craft i $84,000 based on its purchase price some three years earlier . In trying to get the suit dismissed, Dermit alleges that if the court considers the depreciation of the craft over the time it had been owned by Train, the craft was worth far less than the $75,000 jurisdictional limit for the federal district courts and probably has a market value of not more than $62,000 . In a counterargu- ment, Train states that the replacement cost of the craft is cur- rently at least $94,000. If the suit is dismissed and must then filed in a state court, Train may not be able to get jurisdiction over Dermit and will therefore go uncompensated . What value of the cabin cruiser do you think the court will use in making its determination ?

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