Federal Judiciary

New Cert. Petition: Centerior Energy v. Mikulski

By Akin Gump Supreme Court Practice Group

The following post is by Monica Sekhon, an associate in Akin Gump’s DC office who worked on the petition discussed. 

We filed this cert. petition Friday in the case of Centerior Energy v. Mikulski, a case that raises the question of when a federal court may exercise jurisdiction over a state law claim that turns on a disputed issue of federal law.  Respondents, shareholders of petitioners FirstEnergy Corporation and its subsidiaries, filed suit against petitioners in state court seeking a refund of allegedly overpaid taxes under state law claims of breach of contract and fraudulent misrepresentation.  Respondents’ suit turns on a dispute over the proper interpretation of a federal tax law provision that affects the amount of taxes owed by shareholders to the IRS.  Petitioners’ interpretation was reflected on forms that they are required by federal law to file with the IRS and to distribute to shareholders.  Respondents claim that they relied on these forms and, consequently, overpaid their taxes.  After petitioners removed the case to federal court, the district court denied respondents’ motion to remand on the ground that the claims raised a disputed and substantial question of federal law - namely, the interpretation of a federal tax provision.

Full post as published by SCOTUSBLOG on January 22, 2008 (boomark / email).