Brief Fact Summary. Plaintiff, general counsel for First Bancorp, uncovers irregularities and violations of the bank’s Code of Ethics by bank officials. Plaintiff is later fired and sues the bank alleging violations of federal employment law (Title VII) and a number of claims under Puerto Rico laws.
Synopsis of Rule of Law. The federal court may decline to exercise supplemental jurisdiction for the presence of complex or novel issues of state law.
When ruling on a motion to dismiss under Rule 12(b)(6), the court must accept as true the well-pleaded factual allegations of the complaint, draw all reasonable inferences therefrom in the plaintiff's favor and determine whether the complaint, so read, sets forth facts sufficient to justify recovery on any cognizable theory.View Full Point of Law
Issue. Two of §1367(c)’s subsections are at issue: (1) that the state law claims raise complex or novel issues and (2) that the state-law claims substantially predominate over the federal claim.
Held. Because the Puerto Rico law claims substantially predominate over the federal claims in this case, and because they posit novel and complex issues of state law, the Court declines to exercise supplemental jurisdiction. The Puerto Rico law claims are dismissed without prejudice, so that Plaintiff may re-file them in Puerto Rico courts.
Discussion. Canon 21 belongs to an exclusively Puerto Rican body of law, and is decidedly different to the corresponding Model Rule of the American Bar Association, and is silent on the issue at hand of the possibility of divulging confidential information in order to pursue such a claim. The Puerto Rican courts must imbue these laws independently with important considerations of public policy.