In the 1991 case American National Red Cross v. S.G. and A.E., the U.S Supreme Court ruled that federal courts have jurisdiction over cases involving the American National Red Cross, even if they are not explicitly based on a federal question or diversity of citizenship between parties. The court held that Congress had chartered the organization to perform national functions, thus making it an instrumentality of the United States government for purposes of determining jurisdiction under Title 28 U.S.C Section 1349. This decision came after a lawsuit was filed by S.G and A.E against The American National Red Cross in state court alleging negligence in blood transfusion procedures which resulted in HIV infection; however, this suit was removed to Federal District Court due to its interpretation as a "corporation created by an Act of Congress." Despite arguments from S.G and A.E about lack of subject-matter jurisdiction, Justice John Paul Stevens delivered majority opinion affirming lower courts' decisions granting federal jurisdiction.

In the dissenting opinion for the American National Red Cross v. S.G. and A.E., Justice Stevens argued that Congress did not intend to grant federal jurisdiction in all cases involving the American National Red Cross when it amended its charter in 1947. He pointed out that while Congress may have intended to protect the organization from state interference, this does not necessarily mean they wanted every dispute involving them heard at a federal level. The majority's interpretation of "sue and be sued" clause was too broad according to him, as it would allow any national corporation with similar clauses in their charters access to federal courts regardless of whether or not there is a substantial question of federal law involved. This could potentially flood these courts with minor disputes best resolved at a local level.