Venue: |
US Dist. Ct. E. Dist. CA
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Facts: |
Mazda wants its money, but maybe they harrassed Sparrow. |
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Posture: |
Suit in state court, defendant removes to federal court, adds on
some counter-claims. |
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Issue: |
Since the countercoaims are not mandatory, does this court have
supplementary jurisdiction over them? |
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Holding: |
No. Counterclaims are dismissed without prejudice. |
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Rule: |
Federal courts have supplemental jurisdiction over compulsory counterclaims.
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Reasoning: |
The fact that Sparrow has a debt is separate from the practices that
Mazda was using to collect that debt. And we don't want people to
think that suing under a debtor protection statute will invite
a judgment against them-- that defeats the purpose of the whole
thing. We could exercise jurisdiction here, because both parties'
claims spring from a common set of facts, but § 1367(c)(4)
tells us we don't have to, and the interest in preserving the
spirit of FDCPA overrides the interest in hearing these claims
just now. |
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Dicta: |
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