Civil Procedure — subject matter jurisdiction

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U.S. Court of Appeals for the 7th Circuit

Civil

Civil Procedure — subject matter jurisdiction

Even though a case arises under the Patient Protection and Affordable Care Act, federal jurisdiction is lacking where all the issues involve state law.

“The removal of this litigation does not satisfy either part (1) or part (4) of Gunn. The school districts’ suit does not ‘necessarily’ raise any issue of federal law. Grable involved a quiet-title action under state law in which A contended that B’s title to real estate was invalid because it had been conveyed to B by the United States following a seizure to satisfy A’s tax liabilities. A insisted that the seizure and transfer were vitiated by inadequate notice. State law provided the remedy, a declaration of ownership, but it was impossible to decide who owned the land without deciding whether the federal government followed legal requirements when seizing the parcel from A and conveying it to B. Deciding an issue of federal law was inescapable, and the national government itself was vitally concerned about the outcome; an adverse decision could undercut its ability to collect taxes. Nothing remotely similar is true about the dispute between WEA and the school districts.”

Vacated and Remanded.

13-3787 Hartland Lakeside Joint No. 3 School District v. WEA Ins. Co.

Appeal from the United States District Court for the Eastern District of Wisconsin, Callahan, Mag. J., Easterbrook, J.