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Smith v. Kansas City Title & Trust Co., 255 U.S. 180 (1921)
Mottley stated the general rule regarding arising under jurisdiction: federal district court subject matter jurisdiction exists under Section 1331 only if the plaintiff asserts a federally created cause of action. That rule governs perhaps 99.9% of arising under cases in federal court. One exception to this rule is referred to as the "Smith-Grable" exception, after the two cases that gave rise to it. If you become a federal court litigator, you may never see the Smith-Grable exception used. But learning about it teaches a lot about why we have federal courts. Smith appears below.
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