Krause v. Textron Financial Corp.

Summary

The Supreme Court of Florida held that 28 U.S.C. § 1367(d) tolls the applicable state statute of limitations for a state-law claim that was pursued in federal bankruptcy proceedings and later dismissed for lack of subject-matter jurisdiction. The court quashed the Second District's decision to the extent inconsistent with its holding and approved the Fourth District's decision in Scarfo v. Ginsberg. The court did not disturb the Second District's conclusion that the unjust-enrichment claim was not subject to tolling because it was not included in the bankruptcy complaint.

Holdings

1. Section 1367(d) permits tolling of the applicable state limitations period for a claim commenced in federal court and later dismissed for lack of federal subject matter jurisdiction, including a claim dismissed because the bankruptcy court lacked jurisdiction.
2. Section 1367(d) is not limited solely to cases in which a federal court declines supplemental jurisdiction under the circumstances listed in § 1367(c).
3. The Supreme Court did not disturb the Second District's holding that § 1367(d) did not apply to the unjust-enrichment claim because that claim was not part of the bankruptcy complaint.

Questions Presented

1. Whether 28 U.S.C. § 1367(d) tolls a state statute of limitations when a state-law claim filed in federal court is dismissed because the bankruptcy court lacked subject matter jurisdiction.
2. Whether § 1367(d) is limited to claims dismissed after a federal court formally declines supplemental jurisdiction under § 1367(c).
3. Whether the tolling provision applies to the Petitioners' unjust-enrichment claim that was not part of the bankruptcy complaint.

Disposition

quashed