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Questions about federal exemption not basis for removal of case

Questions about federal exemption not basis for removal of case

Questions about federal exemption not basis for removal of case

When the Episcopal School of Dallas was sued in Texas state court for alleged negligence in an alleged sexual relationship between a former student and a former teacher, the plaintiffs challenged the School’s state law charitable immunity defense by questioning whether the School actually qualified as a charity under Section 501(c)(3) of the federal Tax Code. The School claimed the controversy created “federal question jurisdiction” to remove the case from state to federal court. A federal District Court in Texas has said: no way. It has remanded the case to state court for further proceedings. “A case may not be removed to federal court on the basis of a federal defense even if the defense...

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