Bodenner v. Graves

828 F. Supp. 516, 1993 U.S. Dist. LEXIS 10813, 1993 WL 293876
CourtDistrict Court, W.D. Michigan
DecidedJuly 29, 1993
Docket1:92:CV:763
StatusPublished
Cited by13 cases

This text of 828 F. Supp. 516 (Bodenner v. Graves) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bodenner v. Graves, 828 F. Supp. 516, 1993 U.S. Dist. LEXIS 10813, 1993 WL 293876 (W.D. Mich. 1993).

Opinion

OPINION

ENSLEN, District Judge.

This case arises out of a dispute over construction contracts and a construction partnership. Plaintiffs allege several causes of action in their complaint, 29 to be exact, including breach of contract, breach of fiduciary duty, fraud, conversion, misappropriation, embezzlement, negligence, unjust enrichment, misrepresentation, injury to property, concealment, environmental contamination, and one federal claim under the Federal Racketeer Influenced and Corrupt Organizations (“RICO”) statute. Defendants have filed a motion to dismiss due to lack of federal question jurisdiction. The issue, then, is whether this Court has jurisdiction over this dispute.

A review of the plaintiffs’ complaint reveals that it contains state law claims over which the Court does not have original jurisdiction. This Court must decide whether it should exercise its discretion to exert jurisdiction over the state law claims.

Congress has recently enacted a provision entitled “Supplemental Jurisdiction,” which governs jurisdiction over any claim so related to the claims over which the Court has original jurisdiction that “they form part 'of 'the same case or controversy under Article III of the United States Constitution.” 28 U.S.C. § 1367 (effective December 1, 1990). This provision states that a court may decline to exercise supplemental jurisdiction if “the claim substantially predominates over the claim or claims over which the district court has original jurisdiction.” Id. (§ 1367(c)). This language mirrors the language used by the courts in developing the common-law doctrine of pendent jurisdiction. Congress intended to codify pendent and ancillary jurisdiction. Vild v. Visconsi, 956 F.2d 560, 570 (6th Cir.1992). For this reason, application of the law governing pendent jurisdiction is warranted.

A federal district court may exercise pendent jurisdiction over state law claims if it (1) has the authority to hear the claims, and (2) determines, in its discretion, that the exercise of jurisdiction over the claims will further the policy goals of the doctrine of pendent jurisdiction. See generally United Mine Workers v. Gibbs, 383 U.S. 715, 86 S.Ct. 1130, 16 L.Ed.2d 218 (1966). The Sixth Circuit has summarized the requirements for exerting pendent jurisdiction over state law claims as such:

*518 The three prerequisites for the exercise of pendent jurisdiction are (1) the federal claim must have substance sufficient to confer subject matter jurisdiction on the court; (2) the state and federal claims must derive from a common nucleus of operative fact; and (3) the plaintiffs claims are such that he would ordinarily be expected to try them all in one judicial proceeding.

Gaff v. Federal Deposit Ins. Corp., 814 F.2d 311, 319 (6th Cir.1987) (quoting Transcontinental Leasing, Inc. v. Michigan Nat’l Bank, 738 F.2d 163, 165-66 (6th Cir.1984)).

The doctrine of pendent jurisdiction is a doctrine of judicial discretion whose justification lies in “considerations of judicial economy, convenience and fairness to litigants.” Gibbs, 383 U.S. at 726, 86 S.Ct. at 1139. The Supreme Court has recognized that “a federal court’s determination of state-law claims could conflict with the principle of comity to the States and with the promotion of justice between the litigating parties.” Carnegie-Mellon University v. Cohill, 484 U.S. 343, 349-50, 108 S.Ct. 614, 619, 98 L.Ed.2d 720 (1988). (quoting Gibbs, 383 U.S. at 726, 86 S.Ct. at 1139). Thus, “pendent jurisdiction is a doctrine of discretion, not of plaintiffs right.” Gibbs, 383 U.S. at 726, 86 S.Ct. at 1139. Accordingly, a federal court with pendent jurisdiction should normally dismiss state claims without prejudice when it appears that the state issues “substantially predominate” over the federal issues in terms of proof, scope, or comprehensiveness of the remedy sought. Id.

Plaintiffs have asserted one claim over which this Court has original jurisdiction and 28 claims over which the Court could exercise supplemental or pendent jurisdiction. .1 find that plaintiffs’ state law claims substantially predominate over the federal claim asserted. For this reason, I dismiss counts 1-27, and count 29 without prejudice.

This is not the end of my inquiry, however, as the Court has also been asked by the defendants to dismiss the RICO claim. The Court must decide whether, having dismissed the 28 of 29 claims, I may also dismiss the alleged federal claim over which the court has original jurisdiction under 28 U.S.C. § 1367. In other words, can the Court grant defendants’ request for a “complete dismissal?”

The Court has been unable to find much guidance on this issue, but has discovered some law applicable to the instant case. A recent opinion, from the Northern District of Illinois, held that the supplemental jurisdiction statute, 28 U.S.C. § 1367, “provides for specific circumstances in which a court entertaining supplemental jurisdiction over a claim embraced within this provision may return the entire case to the state court.” Libertyville Community High Sch. Dist. 128 v. North Chicago Unit Sch. Dist. 187, No. 93-C2464, 1993 WL 222488, at *2 1993 U.S.Dist. LEXIS 8394, at *5 (N.D.Ill. June 21, 1993) (emphasis added). Those circumstances include:

(1) when the claim raises a novel or complex issue of state law;
(2) when the claims over which the federal court would otherwise lack jurisdiction predominate over the claim which gives rise to federal jurisdiction;
(3) when the district court has dismissed all claims over which it had original jurisdiction; or,
(4) in exceptional circumstances, when there are compelling reasons for declining jurisdiction.

28 U.S.C. § 1367(c).

Although Libertyville is the only case I found which" addresses complete dismissal under § 1367, the Court came across several eases which address the same issue with respect to an analogous statute, 28 U.S.C. § 1441(c). These cases discuss complete dismissal in the situation where a case has been removed from state court to federal court.

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Bluebook (online)
828 F. Supp. 516, 1993 U.S. Dist. LEXIS 10813, 1993 WL 293876, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bodenner-v-graves-miwd-1993.