This appeal arises from the district court’s denial of the defendants’ post-trial motions. In a bench trial, the district court dismissed the plaintiffs Miller Act claim, the basis of his federal jurisdiction, for failure to secure a bond as required by the statute. The court proceeded on plaintiffs remaining state-law contractual claims by asserting pendent jurisdiction. It found in favor of the plaintiff. After the trial concluded, the court allowed plaintiff to amend his complaint by claiming that diversity allegedly existed at the beginning of the lawsuit. The defendants urged that the court lacked subject-matter jurisdiction and could not allow plaintiff to amend his complaint. The defendants submitted new evidence challenging diversity jurisdiction. The court ruled that it properly asserted supplemental jurisdiction despite the dismissal of the Miller Act claim and dismissed the defendants’ jurisdictional challenge as irrelevant. For the reasons discussed below, we VACATE and REMAND to the district court.
I. FACTS AND PROCEDURAL HISTORY
The defendant Graybar Electric Company, Inc. (Graybar)
1
contracted with Ste
Arena originally brought suit under the Miller Act, 40 U.S.C. § 3133 et seq., which provides federal question jurisdiction to the district court pursuant to 28 U.S.C. § 1331. In Arena’s original complaint, he asserted proper jurisdiction based on federal question and supplemental jurisdiction. Arena conceded at the beginning of the bench trial that the defendants failed to secure a bond as required under the Miller Act. The failure to secure a bond resulted in the district court’s dismissal of Arena’s Miller Act claim. Therefore, Arena proceeded to trial under applicable Louisiana state-law. In March 2010, the district court entered judgment in favor of Arena on his state-law breach of contract claims, holding Graybar and Stevens liable for unpaid compensation for the work Arena provided. After the trial, the court allowed Arena to amend his complaint “to allege diversity that existed at the time of the original complaint.”
After judgment was entered, Graybar and Stevens filed a motion for a new trial pursuant to Fed.R.Civ.P. 59 and a motion to dismiss under Fed.R.Civ.P. 12(b)(1) for lack of subject-matter jurisdiction. The defendants argued that there was no jurisdiction at the time the court allowed Arena to amend his complaint to assert diversity of citizenship. Although 28 U.S.C. § 1653 and Fed.R.Civ.P. 15(a) allow amendments to cure defective jurisdictional allegations, these rules do not permit the creation of jurisdiction when none existed at the time the original complaint was filed. According to the defendants, Arena was a Louisiana citizen at the time he filed suit, not a Texas citizen. The defendants submitted a voter registration document which purports to show Arena’s status as a Louisiana-registered voter or citizen until the registration was cancelled in September 2005. The original complaint was filed on May 25, 2005. The district court acknowledged the defendants’ argument and newly submitted exhibit but found that defendants did not give reasons why the new evidence was not submitted before entry of judgment. Accordingly, the defendant’s challenge to diversity jurisdiction was deemed irrelevant. The court asserted pendent jurisdiction over Arena’s state-law claims. The court declined to consider the defendants’ newly submitted evidence and ruled against their jurisdictional challenge. That ruling is now before us on appeal.
II. STANDARD OF REVIEW
The court reviews a district court’s assumption of subject-matter juris
III. DISCUSSION
Before reaching the jurisdictional issues that are at the heart of this appeal, we first address defendant Graybar’s untimely filing of its notice of appeal.
Burnley v. City of San Antonio,
Defendant Stevens timely filed its notice of appeal on November 4, 2010. Graybar failed to file by this date. The Federal Rules of Appellate Procedure, however, permitted a later filing. Pursuant to Fed. R.App. P. 4(a)(3), Graybar was permitted to file its notice of appeal by November 18, 2010. 4 The record does not show that Graybar properly filed a notice of appeal by the November 18, 2010 date. Accordingly, we dismiss Graybar from this appeal. 5
Proper Federal Jurisdiction
Arena’s original lawsuit alleged a Miller Act claim and Louisiana state-law claims. The Miller Act claim failed, however, and was dismissed by the district court at the beginning of trial. Defendants argue that the Miller Act claim’s dismissal eliminated subject-matter jurisdiction over Arena’s lawsuit and the court’s assertion of supplemental jurisdiction over Arena’s remaining state-law claims was in error.
1. The Miller Act and Federal Question Jurisdiction
Arena asserted a claim under the Miller Act as a basis for his federal question subject-matter jurisdiction. “Federal question jurisdiction arises when a plaintiff ] set[s] forth allegations ‘founded on a claim or right arising under the Constitution, treaties or laws of the United States.’ ”
Hart v. Bayer Corp.,
199 F.3d
The Miller Act itself does not explicitly mention that a bond is necessary to maintain jurisdiction under the statute. Federal case law, however, has established that a claim under the Miller Act cannot be maintained without it. “Absent the existence of a bond, there can be no claim under the [Miller] statute.”
Faerber Elec. Co., Inc. v. Atlanta Tri-Com, Inc.,
Congress has said that contractors shall be made liable to materialmen and laborers in an amount to be made determinate by the giving of the bond. The statutory liability, which in turn is inseparably linked to the statutory remedy, assumes the existence of a bond as an indispensable condition. Till then, there is neither federal jurisdiction nor any right of action that can rest upon the statute.
Strong v. American Fence Constr. Co.,
Here, no bond was secured for the government project at issue. This fact is conceded by both Arena and Stevens. Arena, however, contends that the Fifth Circuit has recognized the existence of supplemental jurisdiction over state-law claims where a plaintiffs primary claim under the Miller Act has been dismissed. It cites to our decision in
U.S. for the Use of American Bank v. C.I.T Constr. Inc. of Tex.,
Without a secured bond, there can be no Miller Act claim. And without his Miller Act claim, Arena lost the anchor of his federal question jurisdiction under 28 U.S.C. § 1331. Despite the dismissal of Arena’s federal claim, the court determined that it properly retained jurisdiction over his state-law claims.
(a) Supplemental jurisdiction
The principle of pendent jurisdiction is codified in 28 U.S.C. § 1367 and gives the court discretion to exercise jurisdiction over state-law claims when: (1) federal question jurisdiction is proper, and (2) the state-law claims derive from a common nucleus of operative facts. 8 The magistrate judge reasoned that it was within its power and judicially efficient to exercise pendent jurisdiction as Arena’s state-law claims are based on the same set of facts. Accordingly, the defendants’ jurisdictional challenge was rejected.
[I]t is important to emphasize ... that supplemental jurisdiction can be exercised in a case that has invoked an independent basis of federal subject matter jurisdiction ... [I]f a federal claim is too insubstantial to invoke federal question jurisdiction for the underlying case, and there is no diversity, there can be no supplemental jurisdiction of other claims. [The] result has nothing to do with supplemental jurisdiction. It flows from a requirement of federal question jurisdiction.
Both parties concede that no bond was secured and do not dispute the district court’s dismissal of the Miller Act claim. Arena’s claim was not substantial as it contained a fatal defect when no bond was secured. The magistrate judge acknowledged the defect when she concluded that a bond was not secured as required by the Miller Act. Thus, Arena proceeded solely on his state-law claims. The court’s reasoning of judicial efficiency to resolve Arena’s state-law claims comes into play only when jurisdiction is proper. The court relied on
Int’l Coll, of Surgeons,
The court lacked federal question jurisdiction and federal law has long established that federal courts do not have jurisdiction over federal claims that are too insubstantial or attenuated, thus are devoid of merit.
Decatur Liquors, Inc.,
(b) Diversity Jurisdiction
We now consider whether the parties satisfy diversity jurisdiction pursuant to 28 U.S.C. § 1332. Because we have determined that there is no federal question jurisdiction and thus no valid assertion of supplemental jurisdiction, the only avenue which remains for proper subject-matter jurisdiction is a showing of complete diversity. 10
After the entry of judgment, defendants argued that the court lacked authority to allow Arena to amend his complaint to fix the jurisdictional problem. In other words, it was wrong for the court to allow Arena to go back and assert diversity of citizenship in an amended complaint when no diversity existed at the time the original complaint was filed. With their post-trial motions, defendants submitted a Louisiana
i. Consideration of new evidence
The court refused to consider new evidence because defendants failed to explain why the information was not presented before judgment was entered. The magistrate judge concluded that the Louisiana voter registration form was available to defendants before judgment. And in balancing the need to conclude litigation against the need to render just decisions on the basis of all facts, admitting new evidence was unnecessary. In other words, the court found that the defendants could have but failed to timely produce their evidence and the totality of the circumstances did not require the court to review it. That finding was incorrect.
Proper jurisdiction for a federal court is fundamental and necessary before touching the substantive claims of a lawsuit. Even if defendants failed to challenge jurisdiction at a prior stage of the litigation, they are not prohibited from raising it later.
See Menchaca v. Chrysler Credit. Corp.,
Because a party may not waive the defense of subject matter jurisdiction, it is clear that the issue may be raised for the first time on appeal. [T]he independent establishment of subject-matter jurisdiction is so important that [even] a party ostensibly invoking federal jurisdiction may later challenge it as a means of avoiding adverse results on the merits.
13 Charles Alan Wright et al., Fed. Practice
&
Procedure § 3522 at 122-23 (3d ed. 2008). “A litigant generally may raise a court’s lack of subject matter jurisdiction at anytime in the same civil action, even initially at the highest appellate instance.”
Grupo Dataflux v. Atlas Global Group, L.P.,
When a defendant makes a “factual” attack on a court’s subject-matter jurisdiction, the court is “free to weigh the evidence and satisfy itself as to the existence of its power to hear the case.”
Morris v. U.S. Dept, of Justice,
Arena filed his complaint as an unincorporated association with its principal place of business in Texas. Texas citizenship would satisfy jurisdictional requirements. But the citizenship of his unincorporated association may be Louisiana, which would destroy diversity.
See Harvey v. Grey Wolf Drilling Co.,
Precedent puts a great responsibility on all federal courts to consider reasonable challenges to jurisdiction before reaching the merits of litigants’ substantive claims. It was, and remains, important for the court to examine the merits of Stevens’s jurisdictional challenge because the failure of Arena’s Miller Act claim and lack of complete diversity would necessarily mean that the trial court never had original jurisdiction from the inception of this lawsuit. If this proves to be the case, a Louisiana state court would be the appropriate forum for the parties to resolve their dispute.
ii Amending the original complaint
The magistrate judge’s Memorandum Ruling shows that the court presumed proper diversity existed when Arena’s complaint was originally filed. And Arena was allowed to amend his complaint to reflect this assumption pursuant to 28 U.S.C. § 1332. Federal statutes allow parties to amend defective allegations of jurisdiction in their filing papers. 28 U.S.C. § 1653. These statutes, however, cannot be used to “create jurisdiction retroactively” where it did not previously exist.
Boelens v. Redman Homes, Inc.,
To summarize, the district court may not have had proper subject-matter jurisdiction from the instant Arena decided to file this lawsuit. The district court reasoned that it had wide discretion to exercise supplemental jurisdiction, but it incor
IV. CONCLUSION
For the foregoing reasons, we VACATE the district court as jurisdictional requirements have not been satisfied. We REMAND to the court for further proceedings consistent with this opinion.
Notes
. Graybar is a corporation domiciled in New York. Its principal place of business is in
. Stevens is a limited liability company with its domicile and principal place of business in Louisiana.
. In his original complaint, Arena did not state his state of residency but asserts that his principal place of business is in Benbrook, Texas.
. Fed. R.App. P. 4(a)(3): Multiple Appeals. If one party timely files a notice of appeal, any other party may file a notice of appeal within 14 days after the date when the first notice, was filed, or within the time otherwise prescribed by this Rule 4(a), whichever period ends later.
. Graybar is dismissed from this appeal. However, Graybar and Stevens submitted a joint brief on appeal and shared the same arguments and evidence during the district court proceedings. Therefore, the term “defendants” will be used in reference to both parties.
. We relied on our interpretation of
Fid. and Deposit Co.,
. We made clear in
Fidelity and Deposit Co.
that the use of the word "jurisdictional” in our prior cases referred "to the conditional nature of the right to sue under the Miller Act, not the jurisdiction of the court itself.”
. “[The] Federal courts have long adhered to principles of pendent and ancillary jurisdiction by which the federal courts' original jurisdiction over federal questions carries with it jurisdiction over state law claims that 'derive from a common nucleus of operative fact,' such that the relationship between [the federal] claim and the state claim permits the conclusion that the entire action before the court comprises but one constitutional 'case.' ”
City of Chi. v. Int’l Coll. of Surgeons,
. The Court citing to
United Mine Workers of America v. Gibbs,
. The amount in controversy requirement for diversity jurisdiction pursuant to 28 U.S.C. § 1332(a) is not at issue. Arena has alleged in his Complaint that the defendants are liable to him for the sum of $163,295 for unpaid work.
. The Court held that a post-filing change in a party's citizenship cannot cure the lack of diversity when the case was filed and must be dismissed for failing to invoke federal-subject matter jurisdiction, despite a three-year delay in raising the issue.
Grupo Dataflux,
.
Conolly v. Taylor,
