Court Opinion

ID: 9453803
Source: CourtListenerOpinion
Date Created: 2023-08-04 18:24:07.56099+00
Date Added: 2024-06-11T17:33:48.459500
License: Public Domain

On Petition for Rehearing.
PER CURIAM.
Our attention is called to the existence of exceptions from our statement, “Jurisdiction, however, is to be determined on the basis of the face of the complaint.”
We are not concerned here, however, with such facts as are required for jurisdiction based on diversity. In this case, federal court jurisdiction depends on the character of the action, i. e., is it an action to enforce liabilities and duties under the securities act or the exchange act ? Taking the complaint at face value we held that it is such action.
The Supreme Court has said:
“The previously carved out exceptions are that a suit may sometimes be dismissed for want of jurisdiction where the alleged claim under the Constitution or federal statutes clearly appears to be immaterial and made solely for the purpose of obtaining jurisdiction or where such a claim is wholly insubstantial and frivolous. The accuracy of calling these dismissals jurisdictional has been questioned. The Fair v. Kohler Die & Specialty Co. supra, 228 U.S. [22] at 25 [33 S.Ct. 410, 57 L.Ed. 716, 717]. But cf. Swafford v. Templeton, supra [185 U.S. 487, 22 S.Ct. 783, 46 L.Ed. 1005].” 1
If there is room, in deciding a motion to dismiss a complaint for lack of jurisdiction over the subject matter, for a determination, on the basis of affidavits or other material outside the complaint, that the averments of fact which are essential to stating a claim under the securities act or the exchange act are' so clearly false, sham or frivolous that they may be disregarded, the record before us does not provide a clear and satisfactory basis on which to make so drastic a determination.
The petition for rehearing is denied.

. Bell v. Hood (1946), 327 U.S. 678, 682, 66 S.Ct. 773, 776, 90 L.Ed. 939.