A plaintiff (State A) sues a defendant (State B) for text 80,000 in federal court. The defendant impleads a third-party (State A) for indemnity under Rule 14. The plaintiff then amends the complaint to assert a text 50,000 claim directly against the third-party defendant. Does the court have jurisdiction over the plaintiff's new claim?

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Federal Rules of Civil Procedure (FRCP) QUESTION #3689

Question 1

A plaintiff (State A) sues a defendant (State B) for $\text{\$80,000}$ in federal court. The defendant impleads a third-party (State A) for indemnity under Rule 14. The plaintiff then amends the complaint to assert a $\text{\$50,000}$ claim directly against the third-party defendant. Does the court have jurisdiction over the plaintiff's new claim?

Yes, under supplemental jurisdiction because it arises from the same nucleus of fact.
No, because 28 U.S.C. $\S 1367(b)$ bars supplemental jurisdiction for claims by plaintiffs against persons made parties under Rule 14 in diversity cases.✔️
Yes, because the total amount in controversy is now $\text{\$130,000}$.
No, because the claim against the third-party is for less than $\text{\$75,000}$.

Correct Answer Explanation

In cases founded solely on diversity, 28 U.S.C. $\S 1367(b)$ excludes supplemental jurisdiction over claims by plaintiffs against persons made parties under Rule 14 (impleader) if it would be inconsistent with the requirements of diversity jurisdiction (complete diversity).

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