Jones v. Ford Motor Credit Co.
United States Court of Appeals for the Second Circuit
358 F.3d 205 (2004)
Joyce Jones and other plaintiffs sued Ford Motor Credit (defendant) in the Southern District of New York, alleging that Ford's dealer-discretion pricing system resulted in Jones, who is African-American, being charged a higher interest rate because of her race, and sought class certification and damages. Ford counterclaimed against the named plaintiffs for defaulting on their car loans. The plaintiffs moved to dismiss the counterclaim, and the district court agreed it lacked jurisdiction, reasoning the counterclaim was permissive (not compulsory) and therefore had no independent basis for federal jurisdiction; Ford appealed.
Whether, under 28 U.S.C. § 1367, a federal district court may exercise supplemental jurisdiction over permissive counterclaims that lack an independent basis for federal jurisdiction.