Adams

There is before the Court a motion by plaintiffs to remand this action to the Superior Court of the State of California, in and for the County of Sutter, from which court the case was removed by the State of California and two of its agencies, the Reclamation Board and the Sacramento and San Joaquin Drainage District (hereinafter referred to collectively as the State).

The parties are in agreement as to the bare text to be applied when considering a motion to remand where, as here, a basis for diversity jurisdiction is lacking. The action must be “ * * * founded on a claim or right arising under *458 the * * * laws of the United States” ( 28 U.S.C.A. § 1441 (b)). This test is, essentially, the same one made to determine the fact of original jurisdiction (Western Union Tel. Co. v. Ann Arbor R. Co., 178 U.S. 239 , 20 S.Ct. 867 , 44 L.Ed. 1052 , and Defiance Water Co. v. City of Defiance, 191 U.S. 184 , 24 S.Ct. 63 , 48 L.Ed. 140 ). There is, however, a sharp conflict over the effect of this test as applied to the facts of the instant ease.

The State, on the one hand, contends that the causes of action asserted against it arise under acts of Congress in that recovery is sought for…