MATT T. KOKKONEN, PETITIONER v. GUARDIAN LIFE INSURANCE COMPANY OF AMERICA, 511 U.S. 375

Summary

The court reversed a judgment ruling that after dismissal of an action pursuant to a settlement agreement, a district court had jurisdiction to decide an enforcement motion under its inherent supervisory power. After petitioner sued respondent in a state court, respondent removed the case to a federal district court on the basis of diversity. Thereafter, the parties agreed to settle all claims and moved to dismiss the complaint and cross-complaint pursuant to Fed. R. Civ. P. 41(a)(1)(ii). In the dismissal order, the district judge did not reference the settlement agreement or reserve jurisdiction to enforce it. The court held that respondent could not subsequently seek to enforce the settlement agreement in the federal district court, and that enforcement of the settlement agreement was for the state courts. Specifically, the alleged breach of an agreement that produced the dismissal of an earlier federal suit was no basis for federal court jurisdiction over the agreement in dispute. ...