What is the test for properly dismissing a lawsuit brought in federal court?

A suit brought in federal court is "properly dismissed for lack of subject matter jurisdiction under Rule 12(b)(1) when the district court lacks the statutory or constitutional power to adjudicate it." Makarova v. United States , 201 F.3d 110, 113 (2d Cir. 2000). To the extent that a district court's dismissal for lack of subject matter jurisdiction was based on the application of a rule of law,⁷ an appellate court construes the allegations of the complaint in the light most favorable to Plaintiffs and reviews the district court's ruling de novo , meaning that our inquiry focuses on whether the rules of law were correctly applied. We conclude that the district court did not apply the law correctly in finding that it lacked jurisdiction to decide the case.

i. Article III Standing