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State tax authorities sought to collect on unpaid income taxes by levying on funds in the Construction Laborers Vacation Trust.
Federal court may only issue judgment on cases that create a complaint that arises under federal law or a question of federal law needs to be resolved.
The Construction Laborers Vacation Trust (CLVT) was created to fund annual paid vacations for members of the union. Three union members did not pay their state income taxes and the state sought the unpaid funds through the CLVT.
Whether a federal court maintains jurisdiction under 28 USC § 1331?
No. 28 USC § 1331 allows federal courts to hear cases whose subject matter are within the Constitution, laws, and treaties of the United States.