Lead Opinion
delivered the opinion of the Court.
In this case, we decide whether a federal court of appeals has jurisdiction to review a district court’s order that remands a case to state court after declining to exercise supplemental jurisdiction over state-law claims under 28 U. S. C. § 1867(c). The Court of Appeals for the Federal Circuit held that appellate review of such an order is barred by § 1447(d) because it viewed the remand order in this case as resting on the District Court’s lack of subject-matter jurisdiction over the state-law claims. We disagree and reverse the judgment of the Court of Appeals.
I
In 2005, respondents filed a complaint against petitioner and others in California state court, alleging that petitioner had violated state and federal law in connection with a patent dispute. Petitioner removed the case to the United States District Court for the Central District of California pursuant to § 1441(c), which allows removal of an “entire case” when it includes at least one claim over which the federal district court has original jurisdiction. Petitioner then filed a motion to dismiss the only federal claim in the lawsuit, which arose under the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U. S. C. §§ 1961-1968, for failure
Petitioner appealed to the United States Court of Appeals for the Federal Circuit, arguing that the District Court should have exercised supplemental jurisdiction over the state-law claims because they implicate federal patent-law rights.
This Court has not yet decided whether a district court’s order remanding a case to state court after declining to exercise supplemental jurisdiction is a remand for lack of subject-matter jurisdiction for which appellate review is barred by §§ 1447(c) and (d). See Powerex Corp. v. Reliant Energy Services, Inc.,
II
Appellate review of remand orders is limited by 28 U. S. C. § 1447(d), which states:
“An order remanding a case to the State court from which it was removed is not reviewable on appeal or otherwise, except that an order remanding a case to the State court from which it was removed pursuant to section 1443 of this title shall be reviewable by appeal or otherwise.”
This Court has consistently held that § 1447(d) must be read in pari materia with § 1447(c), thus limiting the remands barred from appellate review by § 1447(d) to those that are based on a ground specified in § 1447(e). See Thermtron Products, Inc. v. Hermansdorfer,
One type of remand order governed by § 1447(c) — the type at issue in this case — is a remand order based on a lack of “subject matter jurisdiction.” § 1447(c) (providing, in relevant part, that “[i]f at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded”). The question presented in this case is whether the District Court’s remand order,
“Subject matter jurisdiction defines the court’s authority to hear a given type of case,” United States v. Morton,
With respect to supplemental jurisdiction in particular, a federal court has subject-matter jurisdiction over specified state-law claims, which it may (or may not) choose to exercise. See §§ 1367(a), (c). A district court’s decision whether to exercise that jurisdiction after dismissing every claim over which it had original jurisdiction is purely discretionary. See § 1367(c) (“The district courts may decline to exercise supplemental jurisdiction over a claim ... if... the district court has dismissed all claims over which it has original jurisdiction” (emphasis added)); Osborn v. Haley,
It is undisputed that when this case was removed to federal court, the District Court had original jurisdiction over the federal RICO claim pursuant to 28 U. S. C. § 1331 and supplemental jurisdiction over the state-law claims because they were “so related to claims in the action within such original jurisdiction that they form[ed] part of the same case or controversy under Article III of the United States Constitution,” § 1367(a). Upon dismissal of the federal claim, the District Court retained its statutory supplemental jurisdiction over the state-law claims. Its decision declining to exercise that statutory authority was not based on a jurisdictional defect but on its discretionary choice not to hear the claims despite its subject-matter jurisdiction over them. See Chicago v. International College of Surgeons,
The Court of Appeals held to the contrary based on its conclusion that “every § 1367(c) remand necessarily involves a predicate finding that the claims at issue lack an independent basis of subject matter jurisdiction.”
* * *
When a district court remands claims to a state court after declining to exercise supplemental jurisdiction, the remand order is not based on a lack of subject-matter jurisdiction for purposes of §§ 1447(c) and (d). The judgment of the Court of Appeals for the Federal Circuit is reversed, and the case is remanded for further proceedings consistent with this opinion.
It is so ordered.
Notes
We do not revisit today whether Thermtron was correctly decided. Neither the brief for petitioner nor the brief for respondents explicitly asked the Court to do so here, and counsel for both parties clearly stated at oral argument that they were not asking for Thermtron to be overruled. See Tr. of Oral Arg. 16, 22; cf. South Central Bell Telephone Co. v. Alabama,
Concurrence Opinion
concurring.
In his dissenting opinion in Thermtron Products, Inc. v. Hermansdorfer,
*642 ‘An order remanding a case to the State court from which it was removed is not reviewable on appeal or otherwise ....’” Id., at 354.
Today, as in Thermtron, the Court holds that § 1447(d) does not mean what it says.
If we were writing on a clean slate, I would adhere to the statute’s text. But Thermtron’s limiting construction applies equally to this case as it did to Powerex Corp. v. Reliant Energy Services, Inc.,
Concurrence Opinion
concurring.
The Court today does nothing more than accurately apply to the facts of this case our holding in Thermtron Products, Inc. v. Hermansdorfer,
I write separately, though, to note that our decision in Thermtron was questionable in its day and is ripe for reconsideration in the appropriate case. Title 28 U. S. C. § 1447(d) states that “[a]n order remanding a case to the State court
Over the years, the Court has replaced the statute’s clear bar on appellate review with a hodgepodge of jurisdictional rules that have no evident basis even in common sense. Under our decisions, there is no appellate jurisdiction to review remands for lack of subject-matter jurisdiction, see Powerex Corp. v. Reliant Energy Services, Inc.,
This mess — entirely of our own making — does not in my view require expert reexamination of this area of the law, see post, at 645 (Breyer, J., concurring). It requires only the reconsideration of our decision in Thermtron — and a welcome return to the Court’s focus on congressionally enacted text.
I join the Court’s opinion. I write separately to note an anomaly about the way 28 U. S. C. § 1447 works. In this case, we consider a District Court’s decision not to retain on its docket a case that once contained federal-law issues but now contains only state-law issues. All agree that the law grants the District Court broad discretion to determine whether it should keep such cases on its docket, that a decision to do so (or not to do so) rarely involves major legal questions, and that (even if wrong) a district court decision of this kind will not often have major adverse consequences. We now hold that § 1447 permits appellate courts to review a district court decision of this kind, even if only for abuse of discretion.
Contrast today’s decision with our decision two Terms ago in Powerex Corp. v. Reliant Energy Services, Inc.,
Thus, we have held that § 1447 permits review of a district court decision in an instance where that decision is unlikely to be wrong and where a wrong decision is unlikely to work serious harm. And we have held that § 1447 forbids review of a district court decision in an instance where that decision
Consequently, while joining the majority, I suggest that experts in this area of the law reexamine the matter with an eye toward determining whether statutory revision is appropriate.
Contrary to Justice Breyer’s suggestion, this ease does not involve reading another “exceptio[n]” into 28 U. S. C. §1447(d)’s language. See post, at 645 (concurring opinion). Not, that is, if you think Thermtron was rightly decided. Unlike Osborn v. Haley,
