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U.S.I. PROPERTIES CORP. v. M.D. CONST. CO.

No. 99-1933.

230 F.3d 489 (2000)

U.S.I. PROPERTIES CORP., Plaintiff, Appellee, v. M.D. CONSTRUCTION CO., Defendant, Appellant, Compania De Desarrollo Cooperativo, Defendant, Appellee.

United States Court of Appeals, First Circuit.

Decided November 6, 2000.

Attorney(s) appearing for the Case

Fernando L. Gallardo with whom Geoffrey M. Woods, Amy Adelson, Nathan Z. Dershowitz, Alan M. Dershowitz, Woods & Woods, and Dershowitz, Eiger & Adelson were on brief, for appellant.

Paul B. Smith, Jr., with whom Smith & Navares was on brief, for defendant-appellee.

Before LYNCH, Circuit Judge, COFFIN, Senior Circuit Judge, and LIPEZ, Circuit Judge.

LYNCH, Circuit Judge.

This case presents a difficult question of the limits on the subject matter jurisdiction of the federal courts. At issue is whether a state, not ever subject to diversity jurisdiction, may be subjected to the ancillary enforcement jurisdiction of the federal courts on a theory that the judgment debtor in an action originally based on diversity is the alter ego of the state. We conclude that the state cannot be so subjected to federal court subject...

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