## Facts

- Rutter asserted a superior right of possession to a mining claim and filed an “adverse suit” connected to a pending mining patent application under Revised Statutes §§ 2325–2326.
- Shoshone Mining Company opposed the claim; both parties were citizens of the same state.
- Rutter brought the action in federal circuit court.
- Shoshone moved to dismiss for lack of subject-matter jurisdiction, arguing the case did not “arise under” federal law merely because it was an adverse suit under the federal mining statutes.
- The circuit court denied dismissal; the circuit court of appeals affirmed.
- The Supreme Court reviewed and reversed.

## Issues

1. Whether an adverse suit authorized by Revised Statutes §§ 2325–2326 “arises under” federal law for federal-question jurisdiction solely because it is brought pursuant to those statutes, even when the parties are not diverse.

## Decision

- The Supreme Court reversed the court of appeals and remanded.
- The Court held that an adverse suit under Revised Statutes §§ 2325–2326 is not, by that fact alone, a suit arising under federal law for purposes of federal-question jurisdiction.
- The phrase “court of competent jurisdiction” in § 2326 does not itself confer jurisdiction on federal courts.

## Legal Principles

- Federal-question jurisdiction does not attach merely because federal statutes authorize a category of suit; jurisdiction depends on whether the plaintiff’s claim, as pleaded, necessarily presents a federal issue sufficient under general jurisdictional rules.
- Statutory direction to proceed in a “court of competent jurisdiction” presupposes existing jurisdiction and does not expand federal or state court jurisdiction by implication.
- When a federal statutory scheme leaves key rights (such as “right of possession” in mining disputes) to be determined by state law, local rules, and customs (so far as consistent with federal law), many such controversies remain primarily state-law disputes for jurisdictional purposes.

## Conclusion

The Court ruled that adverse suits connected to mining patent proceedings under Revised Statutes §§ 2325–2326 do not automatically fall within federal-question jurisdiction; absent diversity or a substantial federal issue appearing on the face of the claim, federal courts lack subject-matter jurisdiction.


Shoshone Mining Co. v. Rutter, 177 U.S. 505 (1900)