A plaintiff (State A) sues a defendant (State B) in federal court in State A for text 100,000 . The defendant impleads a third-party (State B) for indemnity. The third-party then files a counterclaim against the original plaintiff (State A) for text 10,000 arising from the same transaction. Does the court have jurisdiction over the third-party's counterclaim?

Home › MCQs › Federal Rules of Civil Procedure (FRCP) › Question #3699

Federal Rules of Civil Procedure (FRCP) QUESTION #3699

Question 1

A plaintiff (State A) sues a defendant (State B) in federal court in State A for $\text{\$100,000}$. The defendant impleads a third-party (State B) for indemnity. The third-party then files a counterclaim against the original plaintiff (State A) for $\text{\$10,000}$ arising from the same transaction. Does the court have jurisdiction over the third-party's counterclaim?

No, because the amount is under $\text{\$75,000}$.
No, because 1367(b) bars it.
Yes, because 1367(b) only restricts claims by 'plaintiffs' in diversity cases, not claims by other parties.✔️
Yes, but only if the plaintiff consents.

Correct Answer Explanation

28 U.S.C. $\S 1367(b)$ restricts supplemental jurisdiction for claims 'by plaintiffs' against persons made parties under certain rules (14, 19, 20, 24). It does not restrict claims by defendants or third-party defendants against the original plaintiff.

More Options