No Exclusive Federal Jurisdiction for Sotheby's Claim
Judge Berman in the United States District Court, S.D.N.Y., recently held that there was no federal question jurisdiction in a matter where Sotheby's sued Modern Art Services Ltd. for negligent mishandling of a statue. The Court also determined that Sotheby's claim was not preempted by the Carmack Amendment.
The Court noted that absent evidence Congress intended federal courts to have exclusive subject matter jurisdiction over the preemption defense to state law claims against air carriers, it must assume that "a state court, subject to review by a writ of certiorari can resolve such a defense as ably as could a federal district court."
The decision is reported as Sotheby's Inc. v. Modern Art Services, Ltd., 10 CIV 9032, April 21, 2011.