In re: Repository Technologies, Inc.

Dist. Ct. erred in relinquishing supplemental jurisdiction over plaintiff's state law claims alleging that defendants-lawyers representing debtor in bankruptcy proceeding had collaborated with certain shareholders in debtor corporation to use debtor's Chapter 11 bankruptcy case to enrich themselves, tortiously interfered with debtor's loan contract with plaintiff and abused bankruptcy process, even though underlying bankruptcy claim had been dismissed and Bankruptcy Ct. had made observation in bankruptcy proceeding that debtor had not filed bankruptcy proceeding in bad faith. While Dist. Ct. had general discretion to decline supplemental jurisdiction under section 1367(c) after federal action had concluded, Dist. Ct. should not have remanded state claims back to state court where state claims were entangled with bankruptcy case, and where Dist. Ct. had already invested considerable time on state claims.