The following excerpt is from People of State of Cal. v. H & H Ship Service Co., 68 F.3d 481 (9th Cir. 1995):
The asserted federal defense was not only colorable but apparently meritorious. The district court had discretion to retain jurisdiction over the case, even after the count that provided the basis for jurisdiction was dismissed. Watkins v. Grover, 508 F.2d 920, 921 (9th Cir. 1975). We therefore conclude that the district court properly removed and retained jurisdiction over this action under the federal officer removal statute. 2
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