Smith v. Rush Retail Centers, Inc.

Cole Smith filed suit in the district court seeking to vacate an arbitration award entered in favor of Smith’s former employer, Rush Retail Centers, Inc. (Rush). Although Rush did not object to the district court’s jurisdiction, a magistrate judge determined that there was no basis for federal jurisdiction because the parties were not diverse and the complaint did not allege a federal question. Over Smith’s objections, the district court concurred with the magistrate judge’s determination and dismissed for lack of jurisdiction both Smith’s complaint and Rush’s counterclaim for attorneys’…