A plaintiff (State A) sues Defendant 1 (State B) and Defendant 2 (State B) for text 100,000 in federal court. Defendant 1 files a cross-claim against Defendant 2 for text 10,000 arising out of the same car accident. Defendant 2 moves to dismiss the cross-claim for lack of subject-matter jurisdiction because it is under text 75,000 . How should the court rule?

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Federal Rules of Civil Procedure (FRCP) QUESTION #3688

Question 1

A plaintiff (State A) sues Defendant 1 (State B) and Defendant 2 (State B) for $\text{\$100,000}$ in federal court. Defendant 1 files a cross-claim against Defendant 2 for $\text{\$10,000}$ arising out of the same car accident. Defendant 2 moves to dismiss the cross-claim for lack of subject-matter jurisdiction because it is under $\text{\$75,000}$. How should the court rule?

Grant the motion, because the cross-claim does not meet the amount in controversy.
Grant the motion, because there is no diversity between Defendant 1 and Defendant 2.
Deny the motion, because the court has supplemental jurisdiction over the cross-claim.✔️
Deny the motion, because cross-claims are always federal questions.

Correct Answer Explanation

Under 28 U.S.C. $\S 1367$, the court has supplemental jurisdiction over cross-claims (Rule 13(g)) that arise from the same transaction or occurrence as the original claim, regardless of the amount or diversity between the co-defendants.

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