American Trial Lawyers Ass'n. v. New Jersey Supreme Court

In American Trial Lawyers Ass'n. v. New Jersey Supreme Court, 409 U.S. 467, 93 S.Ct. 627, 34 L.Ed.2d 651 (1973), a group of lawyers brought an action seeking to declare New Jersey's maximum contingent fee rule unconstitutional. 409 U.S. at 467, 93 S.Ct. 627. The district court dismissed the suit because it found that the issue was primarily one of state law. Id. at 468, 93 S.Ct. 627. The Supreme Court again enunciated the principle that abstention does not involve the abdication of federal jurisdiction, but instead its postponement, stating that "a dismissal on grounds of abstention so as to permit a state court to pass on an issue of state law must not be with prejudice. The proper course is for the District Court to retain jurisdiction pending the proceedings in the state courts." Id. at 469, 93 S.Ct. 627.