In an opinion yesterday, Judge Nathan remanded to state court a dispute among lenders to the Stuy Town residential development because it did not arise under federal law.  The plaintiffs are junior lenders who allege that certain senior lenders improperly foreclosed, but the senior lenders claim that there was no excess value for the junior lenders.  The dispute as to whether there was excess value or not turns (at least in part) on how a federal post-judgment interest statute, 28 U.S.C. § 1961, applies to the 2010 federal judgment giving rise to the foreclosure. Judge Nathan ruled that the role of § 1961 in the case was not sufficient for federal jurisdiction because it related only to damages, was not essential to any cause of action:
Continue Reading Judge Nathan Remands Stuy Town Lender Dispute Because Federal Questions Related Only to Computation of Damages