Federal issue didn’t justify federal jurisdiction

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted May 19, 2021 1:20 PM

ExWorks Capital and its subsidiary, World Trade Finance, filed a state court, state law complaint against several of their former employees that asked for damages and an injunction blocking the defendants from competing with them in servicing loans provided under the Paycheck Protection Program. Removing the case to federal court, the defendants — relying on precedent that extends federal question jurisdiction to cases where “the plaintiff’s right to relief necessarily depends on resolution of a substantial question of …

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