and Submitted November 10, 2016 Pasadena, California
from the United States District Court for the Central
District of California, D.C. No. CV-07-01823-R Manuel L.
Real, District Judge, Presiding
Charles E. Ruben (argued), Law Offices of Charles E. Ruben,
Los Angeles, California, for Cross-Claimant-Appellant John
S. Fisher (argued), Fisher Law Corporation, Woodland Hills,
California, for Cross-Defendant-Appellee Charles von Bernuth.
T. Stowell (argued), Stowell Zeilenga Ruth Vaughn &
Treiger LLP, Westlake Village, California, for
Third-Party-Defendant-Appellee Thomas G. Gehring.
Before: Marsha S. Berzon and Jacqueline H. Nguyen, Circuit
Judges, and Jack Zouhary, [*] District Judge.
panel vacated the district court's Fed.R.Civ.P. 12(b)(6)
dismissal of a state law crossclaim arising out of a
diversity action, and remanded with instructions to dismiss
for lack of jurisdiction.
the District Court in the Western District of Pennsylvania
granted summary judgment in a diversity suit in favor of WRS,
Inc., appellant John Herklotz moved to sever his state law
crossclaim and transfer it to the Central District of
panel held that once Herklotz's crossclaim was severed,
it became an entirely new and independent case that must have
an independent jurisdictional basis. The panel held that
Herklotz could no longer rely on the supplemental
jurisdiction afforded by 28 U.S.C. § 1367(a). The panel
concluded that there was no subject matter jurisdiction
because Herklotz's severed crossclaim included only state
law claims against non-diverse parties.
ZOUHARY, District Judge:
case serves as a reminder of the foundational rule that
federal courts are courts of limited jurisdiction. An initial
overview of this procedurally tortured, sixteen-year saga may
nutshell: this action began in 2000 as a diversity suit in
the Western District of Pennsylvania by Plaintiff WRS, Inc.
against Defendants Plaza Entertainment and its directors John
Herklotz, Eric Parkinson, and Charles von Bernuth. Herklotz
crossclaimed against Plaza, Parkinson, and von Bernuth. When
the district court granted summary judgment in favor of WRS,
Herklotz moved to sever his state law Crossclaim and transfer
it to the Central District of California. The Pennsylvania
district court granted the unopposed motion, severed the
Crossclaim, and transferred the ...