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FAA does not grant federal court jurisdiction
June 12, 2006 by Ross Runkel at LawMemo
Judge Posner took up a jurisdictional question which he said was "mishandled by the parties and the district court."
As Judge Posner put it, there is federal court jurisdiction in a Federal Arbitration Act case only when the underlying dispute would have been within federal jurisdiction if it had been litigated rather than arbitrated.
The good judge figured out that there was diversity of citizenship in the immediate case, so he went on to adjudicate the merits.
Wise v. Wachovia Securities (7th Cir 06/07/2006).
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