When a federal court dismisses an action with prejudice, does the dismissal of the action by the federal district court result in a separate contract dispute arising from the settlement agreement?
MultiRegion, United States of America
The following excerpt is from Gradford v. Tiexiera, 1:17-cv-00201-DAD-GSA-PC (E.D. Cal. 2020):
Generally, when a district court dismisses an action with prejudice, federal jurisdiction ends and a dispute arising under the settlement agreement is a separate contract dispute that requires its own independent basis for jurisdiction. Kelly v. Wengler, 822 F.3d 1085, 1094 (9th Cir. 2016).
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