Greenmount LLC v. Cleanline Management LLC, 2:23-cv-10376

Greenmount LLC (d/b/a "ColdFire Extracts") filed suit against Cleanline Management LLC and Nicholas Coburn alleging federal and state law claims, including misappropriation of trade secrets and computer fraud.
Greenmount asserted federal jurisdiction for its federal claims and supplemental jurisdiction for related state claims.
Coburn, in his answer, filed counterclaims against Greenmount and individual counter-defendants for breach of contract, declaratory judgment, breach of fiduciary duty, and illegal recording, alleging supplemental jurisdiction.
The court dismissed all federal claims against Cleanline and Coburn, leaving only Coburn’s state law counterclaims.
The court issued an order for Coburn to show cause why supplemental jurisdiction should be exercised over his remaining counterclaims, since all federal claims are gone from the case.
The court indicated possible dismissal of the remaining state claims, absent good cause for retaining them.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Should the court exercise supplemental jurisdiction over Coburn’s state law counterclaims now that federal claims are dismissed?	Greenmount: No need for federal jurisdiction on remaining state claims; suggests dismissing all claims.	Coburn: Court has supplemental jurisdiction; asserts claims should remain.	No final ruling; Coburn ordered to show cause why court should retain jurisdiction.
Whether entry of final judgment for all claims/parties is appropriate.	Greenmount: Supports entry of final judgment as all federal claims are resolved.	Cleanline: Objects, asserts Greenmount only challenged jurisdiction late in process.	Court declined, pending briefing on jurisdiction issue.

Arbaugh v. Y&H Corp., 546 U.S. 500 (federal courts must determine their own jurisdiction)
Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375 (presumption against federal jurisdiction)
City of Chicago v. Int’l Coll. of Surgeons, 522 U.S. 156 (supplemental jurisdiction is discretionary)
United Mine Workers of Am. v. Gibbs, 383 U.S. 715 (supplemental jurisdiction is not mandatory)
Carnegie-Mellon Univ. v. Cohill, 484 U.S. 343 (factors for exercising supplemental jurisdiction)
Parra v. PacifiCare of Ariz., Inc., 715 F.3d 1146 (dismissal of remaining state claims appropriate after original jurisdiction claims dismissed)