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BankofGuamv.Semes,3FSMIntrm.370(Pon.1988) Facts BankofGuamfiledsuitintheTrialDivisionoftheFSMSupremeCourttoforecloseona mortgageallegedlyexecutedbySemesonlandinPohnpei.BankischarteredinGuamand SemesisacitizenofPohnpei;Bankseekstoinvokediversityjurisdiction. ProceduralHistory Semesfiledamotiontodismiss,arguingthePohnpeiRealPropertyMortgageAct precludedthenationalcourtsjurisdiction. Issues 1. WhenshouldastatecourtheardiversityjurisdictioncasespursuanttoarticleXI, section6(b)oftheConstitution? 2. CanaPohnpeistatuterequirecertaincasestobeheardinstatecourt? 3. Mustlandcasesbeheardinstatecourt? Analysis 1.

lysis 1.UnderarticleXI,section6(b),theSupremeCourthasconcurrentjurisdictionover diversitycases;howeveritisunclearwhetherthisjurisdictionisconcurrentwithstate courtsorwithothernationalcourtswhichhaveyettobecreated.TheCourtfirstnotes thattheConstitutionalConventionadoptedanamendmentremovingreferencetostate andlocalcourtsinsection6(b),withtheapparentintentthatjurisdictionbeconcurrent withothernationalcourts.ButtheCourtalsonotesthatothersectionsoftheConstitution wouldberedundantiftherewasnopotentialroleforstatecourts,andapprovestheU.S. rulethatstatecourtsmayhavediversityjurisdictiononlyifallthepartiesagree. 2.OnlythenationalCongresshastheauthoritytoprescribejurisdictionpursuantto articleXI,section6(c);astatelegislaturemaynotdoso. 3.Althoughthereisanexceptiontothenationalcourtsexclusivejurisdictionforland issuesinarticleXI,section6(a),thereisnosuchexceptionin6(b).Inanyevent,thisisnot reallyalandcaseperse. Rules 1. Ifallpartiesagreeandstatelawpermits,statecourtsmayhearsection6(b)cases. 2. Statelegislaturesdonothavetheauthoritytoallocatejurisdictiontostatecourts. 3. Nationalcourtsmustbesensitivetothestatesinterestsinlandissuesbutarenot requiredtorelinquishjurisdictionincasesinvolvingland. Conclusion Motiontodismissdenied.

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