Federal Issue Not Substantial Enough for Removal

June 20, 2024  |  New York Law Journal

In the absence of diversity jurisdiction, a case can usually only be removed to federal court if it involves a federal cause of action, although there is an exception for state cases that present significant federal issues.  In New York v. Arm or Ally, Judge Furman retained jurisdiction over state law claims by finding the federal issue substantial and resolvable in federal court. However, in New York v. Sirius XM Radio Inc., Judge Rakoff found the federal issue insufficiently substantial to justify federal jurisdiction, also noting it would disrupt the federal-state balance intended by Congress.  In their latest article, “Federal Issue Not Substantial Enough for Removal,” Morvillo Abramowitz partners Edward M. Spiro and Christopher B. Harwood examine both cases and discuss the circumstances that accounted for these different rulings, with a particular focus on New York v. Sirius XM Radio Inc.

Federal Issue Not Substantial Enough for Removal (pdf | 192.13 KB)