State law jurisdictionality

I have written a lot on why the failure of a federal claim on the merits should never (even if the claim is frivolous) be a basis for destroying jurisdiction. I had not thought about how the problem might arise in diversity cases because the jurisdictional facts (party citizenship and amount-in-controversy) have no connection to the underlying merits of the state-law claim.

The Fourth Circuit wrestled the issue in a worker's comp claim. State law strips state courts of jurisdiction over certain tort claims and places them within the jurisdiction of a state agency. So what happens when the injured plaintiff files an otherwise-barred tort action in federal court? Obviously the plaintiff must lose--an unguided Erie analysis requires the federal court to apply state law. But will the federal court dismiss on the merits or for lack of jurisdiction? The district court said the latter, the Fourth Circuit said it must be the former. The court had jurisdiction under § 1332 and state law cannot expand or limit the jurisdiction of federal courts. Thus, the unavailability of the claim under state law is a merits failure in federal court.

This may be right, but I need to think on it. The court is right that the jurisdictional inquiry in federal court begins and ends with § 1332. But there is something odd about the state-law dismissals being for different reasons in federal and state court. And does a merits dismissal have the preclusive effect that a jurisdictional dismissal does not, especially the defendant tried to get to fed court by removing.