Rural Wtr Dist No 2 Creek Cnty v. City of Glenpool, et al, No. 11-5154 (10th Cir. 2012)
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Plaintiff, Rural Water District No. 2 Creek County, Oklahoma, a rural water provider covered by 7 U.S.C. 1926(b), and Defendant Glenpool Utility Services Authority, a public trust created to provide water service, and its beneficiary, Defendant City of Glenpool, entered into a Settlement Agreement under which Plaintiff agreed not to file a civil action pursuant to section 1926(b) during the term of the agreement unless Defendants defaulted on their contractual obligations. Subsequently, Plaintiff filed the civil action underlying this appeal pursuant to 42 U.S.C. 1983 alleging Defendants violated section 1926(b). The district court dismissed the action for lack of subject matter jurisdiction. The issue on appeal to the Tenth Circuit centered on whether Plaintiff’s agreement not to file a civil action against Defendants, absent default, deprived the Court of subject matter jurisdiction under 28 U.S.C. 1331, where a state court had not yet determined whether Defendants defaulted. Upon review, the Court held that such agreement did not deprive the Court of subject matter jurisdiction, and it reversed and remanded.
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