Andrew Krause, Petitioners v. Textron Financial Corporation, Respondent

Summary

The court held that the federal supplemental-jurisdiction tolling provision applies to the petitioners' state-law claims even though the claims were dismissed because the bankruptcy court lacked subject matter jurisdiction. It rejected a narrow interpretation limiting tolling to dismissals based only on the statutory grounds for declining supplemental jurisdiction and remanded for further proceedings. The court did not disturb the lower court's separate determination that the unjust-enrichment claim was not covered because it was not asserted in the bankruptcy proceeding. Canady, C.J., dissenting, would have dismissed the case for lack of express and direct conflict jurisdiction.