Opinion ID: 563297
Heading Depth: 1
Heading Rank: 2

Heading: jurisdiction

Text: 27 Although neither party contests subject matter jurisdiction, we are bound to address it sua sponte if it is questionable. Emrich v. Touche Ross & Co., 846 F.2d 1190, 1194 n. 2 (9th Cir.1988). Federal question jurisdiction in this case is premised on violations of the Sherman Anti-Trust Act 15 U.S.C. Secs. 1 and 2. The jurisdictional basis of the state claims is pendent jurisdiction. Pendent jurisdiction exists where there is a sufficiently substantial federal claim to confer federal jurisdiction, and a common nucleus of operative fact between the state and federal claims. Phelps v. Continental Illinois Nat'l Bank and Trust Co. (In re Nucorp Energy Sec. Litig.), 772 F.2d 1486, 1490 (9th Cir.1985). The facts giving rise to the pendent state claims for breach of the PGA director's fiduciary duties are identical to those which give rise to Karsten's and the professional plaintiffs' antitrust claims and thus arise out of a common nucleus of operative facts. 28 A federal claim is insubstantial if it is absolutely devoid of merit or obviously frivolous. Id. The ultimate lack of merit of the federal claim does not mean that such claim was not substantial for purposes of conferring jurisdiction. Id.; Mackey v. Pioneer Nat'l Bank, 867 F.2d 520, 523 (9th Cir.1989). In this case, the antitrust claims allege that the actions of the PGA in banning the U-groove clubs amount to a boycott of Karsten's product and a restraint of competition with the individual players. We have jurisdiction over these anti-trust claims pursuant to 28 U.S.C. Sec. 1337. We conclude that these antitrust claims are not insubstantial. See e.g. Gunter Harz Sports, Inc. v. United States Tennis Ass'n, 511 F.Supp. 1103, 1114-24 (D.Neb.1981), aff'd, 665 F.2d 222 (8th Cir.1981); M & H Tire Co. v. Hoosier Racing Tire Corp., 733 F.2d 973, 980-87 (1st Cir.1984); Blalock v. Ladies Professional Golf Ass'n, 359 F.Supp. 1260, 1263-68 (N.D.Ga.1973). 6 Thus, we conclude that the district court had pendent jurisdiction over Karsten's and the professional plaintiffs' state claims. 29 When pendent jurisdiction is present, an injunction may issue on the basis of the pendent claims alone. Republic of Philippines v. Marcos, 862 F.2d 1355, 1361-62 (9th Cir.1988) (en banc), cert. denied, 490 U.S. 1035, 109 S.Ct. 1933, 104 L.Ed.2d 404 (1989). We review Karsten and the professional plaintiffs' pendent claims to determine if the district court abused its discretion in granting the injunction.