Municipality of Mayaguez v. Corporacion Para El Desarrollo Del Oeste, Inc., No. 11-2241 (1st Cir. 2013)
Annotate this CaseAbout thirty years ago, the Municipality of Mayaguez and Corporacion Para el Desarrollo del Oeste (CPDO), a local development corporation, executed a contract under which Mayaguez ceded parcels of land to CPDO with the understanding that the land would be used for a project to be developed in accordance with the Department of Housing and Urban Development's (HUD) Community Development Block Grant program guidelines and regulations. After the relationship between the parties soured, Mayaguez filed this complaint against CPDO, alleging that CPDO violated several HUD regulations, thus breaching its contract. The district court ruled in favor of CPDO and dismissed Mayaguez's claims without prejudice. The First Circuit Court of Appeals vacated the district court's judgment, holding that Mayaguez's commonwealth law claim did not "arise under" federal law within the meaning of 28 U.S.C. 1331. Remanded with instructions to dismiss Mayaguez's claim without prejudice for want of subject matter jurisdiction.
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