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Background:

ABC is a multinational enterprise (MNE) incorporated in State X. ABC entered into a joint venture agreement with XYZ, an MNE incorporated in State Y, to jointly produce a new line of hydraulic equipment in ABC's new factory in State Z, a developing nation. ABC & XYZ have mutually agreed to have the law of State Y govern any disputes or concerns arising under the joint venture agreement. Shortly after the conclusion of the agreement, a wiring defect in ABC's factory caused it to burn to the ground, killing five tourists in the immediate vicinity who were nationals (citizens) of State Q. XYZ, fearing bad publicity, sued ABC to rescind the joint venture agreement. X,Y, & Z are all common law states, while Q is a civil law jurisdiction.

Issue

1.Should a criminal case be filed, analyze the possible arguments and counter-arguments that counsel for either ABC or XYZ could reasonably make for having the case heard in the municipals courts of:
a. State X
b. State Y

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