In the case of Osborn v. Bank of the United States  22 U.S. 738 (1824), it was established that if there is a Federal Question then the case needs to be heard in Federal Court.

  • However, although it has never been overruled, it has also never been followed.
  • 28 USC § 1332, and case law has said that a case arises under whatever law creates the cause of action.
    • If a case arises out of State law, then it's a State Court case.
  • In Smith v. Kansas City Title & Trust  255 U.S. 180 (1921), the Supreme Court expanded Federal jurisdiction.
    • If case depends on a construction of Federal law, even if arises out of a State law claim, then it is still a question of Federal Law.
  • Moore v. Chesapeake & Ohio Railroad  291 U.S. 205 (1934) went back the other way, to a more narrow reading of Federal jurisdiction.
  • The recent case of Grable & Sons Metal Products Inc. v. Darue Engineering and Manufacturing said the Courts need to apply a common sense approach.