Opinion ID: 725497
Heading Depth: 2
Heading Rank: 2

Heading: Counterclaim of Applicants for Electrical Service

Text: 22 Where a court dismisses an action for lack of federal subject matter jurisdiction, it may nonetheless adjudicate a counterclaim presenting an independent basis for federal jurisdiction. See Corporacion Venezolana de Fomento v. Vintero Sales Corp., 477 F.Supp. 615, 621 (S.D.N.Y.1979), modified on other grounds, 629 F.2d 786 (2d Cir.1980), cert. denied, 449 U.S. 1080, 101 S.Ct. 863, 66 L.Ed.2d 804 (1981); 6 CHARLES A. WRIGHT, ARTHUR R. MILLER & MARY KAY KANE, FEDERAL PRACTICE & PROCEDURE § 1414 n. 31 (2d ed.1990) (citing cases). Notwithstanding the fact that appellant Niagara Mohawk's interests are adverse to those of the individual applicants, it appears to press the argument on appeal that the applicants' counterclaim was improperly dismissed. On its face, however, the applicants' counterclaim presents no independent basis for federal jurisdiction, and the plaintiff identifies none. The applicants claim merely that Niagara Mohawk has failed to provide electrical service in accordance with the terms of the franchise agreement and with New York law. Neither the former allegation, which sounds in contract law, nor the latter, invoking a New York statute, provides a basis for federal jurisdiction. 23