ON REMAND FROM THE SUPREME COURT OF THE UNITED STATES
This matter is now before us on remand from the Supreme Court.
Invoking diversity jurisdiction Arkoma Associates, a partnership organized under the laws of Arizona, sued C. Tom Carden and Leonard L. Limes, citizens of Louisiana, as guarantors of an agreement by which Arkoma leased certain drilling equipment to Magee Drilling Company, Inc. (MDC). Carden and Limes counterclaimed. MDC, a Texas corporation with its principal place of business in Texas, intervened, urging claims against Arkoma for violation of the Texas Deceptive Trade Practices Act.
Carden and Limes sought dismissal for lack of diversity jurisdiction because a limited partner of Arkoma was a fellow Louisianian. The district court rejected this jurisdictional challenge and after a bench trial awarded judgment to Arkoma and rejected MDC’s claims. Carden, Limes, and MDC appealed. We affirmed. Arkoma Associates v. Carden,
On remand, MDC maintains that the district court lacked jurisdiction over its demands in intervention because the court lacked jurisdiction over the main demand. MDC’s claims, however, have an independent jurisdictional basis, discrete from that of the main demand. It is undisputed that
When a separate and independent jurisdictional basis exists a federal court has the discretion to treat an intervention as a separate action, and may adjudicate it despite dismissal of the main demand if failure to do so might result in unnecessary delay or other prejudice. Harris v. Amoco Production Co.,
For these reasons, the judgment of the district court rejecting the demands of MDC against Arkoma is AFFIRMED; and the judgment of the district court as it relates to the claims of Arkoma and the counterclaims of Carden and Limes is VACATED for lack of jurisdiction, and those claims are dismissed without prejudice.
