ELR Citation: ELR 20018
No(s). 83-3455 (3d Cir. Oct 24, 1984)

The court holds that it lacks subject matter jurisdiction over suit seeking damages for increased utility rates resulting from the Three Mile Island accident through state causes of action "arising under" the Price-Anderson Act (Act), or through federal common law. The court first notes that when both the right and remedy are state-created, the "arising under" jurisdiction of 28 U.S.C. §§1331 and 1337 exists only if the well-pleaded complaint rule is satisfied. This rule requires a right or immunity created by the Constitution or federal law to be an essential element of the cause of action. The court holds that because none of the Act's elements are essential to plaintiffs' state claims, the claims do not "arise under" the Act. Turning to the federal common-law cause of action, the court observes that neither the terms nor the legislative history of the Act reveal congressional intent to create a federal tort or contract cause of action. In fact, Congress specifically declined to adopt a new body of federal tort law, choosing instead to achieve its goal of uniformity by requiring the nuclear industry to waive certain key defenses otherwise available under state law. The court therefore holds that the federal common-law claims are so completely lacking in merit that granting jurisdiction would allow plaintiffs to allege frivolous federal claims solely for the purpose of obtaining jurisdiction.

Counsel for Appellants
Allan Kanner
1718 Locust St., Philadelphia PA 19103
(215) 546-6661

Lee C. Swartz
Hepford, Swartz, Menaker & Morgan
P.O. Box 889, Harrisburg PA 17108-0889
(717) 234-4121

Counsel for Appellees
John G. Harkins Jr.
Pepper, Hamilton & Scheetz
2001 The Fidelity Bldg., 123 S. Broad St., Philadelphia PA 19109
(215) 893-3600

Seitz, J., before Stewart^* and Adams, JJ.