Legal Question in Business Law in California

No. The amount in controversy is not above the minimum to bring a suit in U.S. District Court. More than likely, the lawsuit should be brought either in California or Nevada state court. The defendant might file a motion to dismiss based on lack of diversity and/or subject matter jurisdiction.

I should have said in either California or Utah, since that's where the defendant lives.

Mr. Cohen is correct. No federal question jurisdiction and beneath the jurisdictional amount for diversity jurisdiction, not to mention the fact that diversity jurisdiction requires that one of the parties be a resident of the state in which the District Court sits. Three strikes and the case is thrown out. The Nevada plaintiff could sue the Utah defendant in federal court in Utah if the case met the jurisdictional amount, but since it doesn't, the options are California or Utah state court.

You managed to get two lawyers to answer your homework question for you. Next time, do the work yourself.