Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_12-cv-00412/USCOURTS-azd-2_12-cv-00412-0/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1331 Fed. Question: Breach of Contract

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

HICA Education Loan Corporation, 

Plaintiff, 

vs.

Angela R. Merzenich, 

Defendant. 

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No. CV-12-0412-PHX-FJM

ORDER

Before the court is plaintiff’s motion for default judgment (doc. 10). 

Plaintiff HICA Education Loan Corporation, a corporation organized under the laws

of South Dakota, is the holder of promissory notes representing student loans issued to

defendant in the unpaid principal amount of $12,599.72. Defendant defaulted on repayment

of the debt and HICA filed this breach of contract action. 

We have an obligation to determine sua sponte whether we have jurisdiction over this

matter. Grupo Dataflux v. Atlas Global Group, L.P., 541 U.S. 567, 593, 124 S. Ct. 1920,

1937 (2004). It is clear that we do not have diversity jurisdiction given that the amount in

controversy is less than $75,000. See 28 U.S.C. § 1332. Plaintiff suggests, however, that we

have jurisdiction under 28 U.S.C. § 1331 because the cause of action “arises under” federal

law, presumably because the student loan was advanced pursuant to a federal student loan

insurance program. See 42 U.S.C. § 292, et seq. Although a federal statute is implicated by

Case 2:12-cv-00412-FJM Document 11 Filed 05/30/12 Page 1 of 2
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the student loan, it nevertheless appears that this cause of action “arises under” a state law

breach of contract claim.

Therefore, IT IS ORDERED that plaintiff shall show cause why this case should not

be dismissed for lack of subject matter jurisdiction. Plaintiff shall file a supplemental brief,

no later than June 8, 2012, addressing this court’s subject matter jurisdiction. 

DATED this 30th day of May, 2012.

Case 2:12-cv-00412-FJM Document 11 Filed 05/30/12 Page 2 of 2