Chapter 4 Federal Question Jurisdiction

It is difficult to formulate a summary of the case holdings as to when an action" arises un­der" federal law. The best one can do, perhaps, is the following_; a case arises under federal law if the plaintiff is alleging a right or interest that is substantially founded on federal law, which consists of federal common law,federal constitutional law, federal statutory law, treaty law, and federal administrative regulations.

I . Federal Question Must Appeal in the Complaint

The federal question must appear as part of the plaintiffs cause of action as set out in a well - pleaded complaint. It is therefore sometimes necessary to determine whether certain alle­gations are proper in pleading the cause of action, and whether the federal element is essential to the plaintiffs case.

1. Defendant’s Answer or Defense is Irrelevant

The content of the defendant’s answer is not relevant;the existence of a defense based on federal law will not give federal question jurisdiction. Likewise, the court may not look to a counterclaim asserted by the defendant to determine whether the plaintiff’s complaint states a federal question claim.

2. Anticipation of a Defense

Similarly, a complaint does not raise a federal question if it does not only in anticipation of some defense.

2. Implied Federal Right of Action

It is not essential that the federal statute expressly provide for a civil cause of action for an alleged violation. Thus,federal question jurisdiction was held to exist in an action involving an alleged violation of the Fourth and Fifth Amendments and an alleged violation of the Securities Exchange Acts of 1934,although neither the Constitution nor the act involved created a"reme­dy" for the wrongs complained of. However,not all federal provisions creating duties,are held to create an implied private right of action.

m. Federal Corporations

Federal question jurisdiction does not arise merely from the fact that a corporate party was incorporated by an act of Congress unless the United States owns more than one - half of the corporation’s capital stock,in which case it is treated as a federal agency that can sue or be sued on that basis in federal court.

4. Pendent Jurisdiction over State Claims

As previously discussed, claims asserted by parties other than the plaintiff can invoke sup­plemental jurisdiction in any case that arise from the same transaction or occurrence as the orig­inal claim,whether it got into federal court by diversity of citizenship or federal question juris­diction.