In plaintiffs' declaratory judgment action claiming that defendants were not entitled to compensation under an alleged contract involving real estate development, summary judgment for plaintiffs is vacated and remanded as there is no federal subject matter jurisdiction over the case because the only federal issue in the case arises as a possible defense to a state law claim. Furthermore, this conclusion is not altered by the fact that the statute at issue is the Securities Exchange Act, nor is this a case where a state law claim necessarily raises a stated federal issue, actually disputed and substantial, which a federal forum may entertain without disturbing any congressionally approved balance of federal and state judicial responsibilities.
Argued: October 16, 2009
Decided and Filed: November 9, 2009
Opinion by Circuit Judge Rogers
For Appellant: Jeffrey Joseph Harmon, Cors & Bassett, LLP., Cincinnati, Ohio
For Appellee: Walter Reynolds, Porter Wright Morris & Arthur LLP., Dayton, Ohio