Opinion ID: 449525
Heading Depth: 2
Heading Rank: 2

Heading: Federal Jurisdiction to Sue the Danielsons.

Text: 38 Next, we address whether there is federal jurisdiction for the Spaeths' action against the Danielsons. If the court below determines that there is no substantial basis for the government's claim that the Spaeths' lands are trust or restricted Indian lands, and thus that there is subject matter jurisdiction for the Spaeths' suit against the United States, then there is pendent jurisdiction for the claims against the Danielsons. 14 39 If, however, the court determines that there is no subject matter jurisdiction for the Spaeths' suit against the federal government, then the suit against the Danielsons must also be dismissed. Under the well-pleaded complaint rule, Gully v. First National Bank, 299 U.S. 109, 57 S.Ct. 96, 81 L.Ed. 70 (1936); Louisville & Nashville R.R. v. Mottley, 219 U.S. 467, 31 S.Ct. 265, 55 L.Ed. 297 (1911), the federal question must appear in the plaintiff's complaint in order to make the case arise under federal law and provide jurisdiction based on 28 U.S.C. Sec. 1331. Plaintiffs' complaint does not establish a cause of action arising out of the constitution and laws of the United States because their cause of action, like the cause of action in Gully, 299 U.S. 109, 57 S.Ct. 96, 81 L.Ed. 70, is an action for breach of contract and is created by state law. The federal question only arises from the Danielsons' potential defense of unmarketable title based on federal law. Additionally, as the Danielsons point out, if the court below determines that the suit against the United States must be dismissed because the Indian claims to the land are substantial, then the Spaeths will be unable, through litigation against the Danielsons, to satisfy their contractual obligation to deliver marketable title. Moreover, litigation of Indian title questions without the participation of the United States as trustee for the Indians, or the Indian claim holders themselves, is improper. In sum, if there is no subject matter jurisdiction for the Spaeths' suit against the United States, then there is no jurisdiction over their suit against the Danielsons either. 40 Reversed and remanded for further proceedings consistent with this opinion. 41