Justices Duck Jurisdiction Issue On Cases Sent To Fed. Court

By Leslie Pappas (October 4, 2021, 8:14 PM EDT) -- The U.S. Supreme Court on Monday declined to review an Eleventh Circuit decision involving a bankruptcy trustee's lawsuit to recoup a $31 million dividend payout for defunct blood-testing company Atherotech Inc., sidestepping jurisdictional questions it raised about federal cases that are removed from state court.

The high court's denial allows the trustee's lawsuit in the U.S. District Court for the Northern District of Alabama to move forward, and leaves in place a circuit split over a century-old ruling on derivative jurisdiction.

Under the doctrine of derivative jurisdiction, established by the Supreme Court's 1922 ruling in Lambert Run Coal v. Baltimore &...

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