Dodocase VR, Inc. v. Merchsource, LLC
- Alex Tse
- 3:17-cv-07088
- U.S. District Court · Northern District of California
- 1
In Dodocase VR v. Merchsource, Judge Tse ordered the parties to explain why the remaining state-law claim should not be dismissed for lack of federal jurisdiction.
The plaintiffs and defendants in Dodocase VR, Inc. v. Merchsource, LLC, because the court questioned whether the remaining state-law breach-of-license claim could proceed in federal court.
What happened
Dodocase VR, Inc. and the other plaintiffs amended their complaint and removed all federal claims. Their only remaining claim alleged that the defendants breached a license agreement under state law.
The plaintiffs asked the court to hear that state-law claim using supplemental jurisdiction, which can sometimes allow federal courts to decide related state-law claims. The court said that jurisdiction appeared unavailable after the plaintiffs voluntarily withdrew every federal claim.
Judge Alex G. Tse ordered the parties to show cause by June 15, 2020, explaining why the case should not be dismissed. The opinion did not itself state that the case was dismissed.
The detailed version
- Dodocase VR, Inc. v. Merchsource, LLC · No. 3:17-cv-07088
- Alex Tse
- May 29, 2020
Background
The plaintiffs voluntarily amended their complaint. In the operative third amended complaint, they removed all federal claims. The only remaining claim was a state-law claim alleging breach of a license agreement. The plaintiffs asked the court to exercise supplemental jurisdiction under 28 U.S.C. § 1367.
Jurisdictional issue
Supplemental jurisdiction is the authority to hear state-law claims related to claims over which a federal court has original jurisdiction. The court stated that when a plaintiff voluntarily amends a complaint to withdraw all federal claims, a federal district court cannot exercise supplemental jurisdiction over the remaining state-law claims. The court therefore stated that federal subject-matter jurisdiction appeared to be lacking.
Order
The court ordered the parties to show cause, by Monday, June 15, why the case should not be dismissed. The opinion did not enter a dismissal; it directed the parties to provide an explanation first. Judge Alex G. Tse signed the order.
Read the full 1-page opinion on CourtListener, the free public archive maintained by the Free Law Project.