A plaintiff brings a case in federal court alleging a claim under federal securities law and includes an additional state law fraud claim based on the same series of transactions. Can the federal court adjudicate both claims, and why?
No, the federal court cannot adjudicate the state law claim because state law claims require an independent basis for jurisdiction.
No, the federal court cannot hear state law claims because they must be filed in state court.
Yes, the federal court may decide both claims because including them in the same case inherently confers jurisdiction over both.
Yes, the federal court may adjudicate both claims because supplemental jurisdiction allows federal courts to hear state law claims connected to a federal claim.
The federal court may adjudicate both claims if the state law claim shares a common factual foundation with the federal claim, satisfying the requirements for supplemental jurisdiction under 28 U.S.C. § 1367. This allows for efficient resolution of both claims in a single action. The incorrect options fail either by misrepresenting supplemental jurisdiction, suggesting federal courts cannot hear state law claims, or implying that jurisdiction is automatic for all claims brought together.
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What is supplemental jurisdiction?
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What does 28 U.S.C. § 1367 state?
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What is the significance of 'common factual foundation' in this context?