In the case of Wisconsin Department of Corrections, et al. v. Keith D. Schacht (1997), the U.S Supreme Court ruled on a matter concerning federal jurisdiction and sovereign immunity for state entities in civil rights cases under 42 USC Section 1983. The plaintiff, Keith D. Schacht, an employee at a correctional institution in Wisconsin filed suit against his employer alleging violation of his constitutional rights due to racial discrimination and retaliation after he reported misconduct by other employees. The defendants argued that they were immune from such suits as per Eleventh Amendment's Sovereign Immunity clause which protects states from being sued in federal court without their consent or unless Congress has abrogated this immunity. The Supreme Court held that while individual claims may be dismissed if they are barred by sovereign immunity, it does not deprive the court of subject-matter jurisdiction over the entire case including remaining valid claims against individuals acting under color of state law who do not enjoy such protection themselves.

In the dissenting opinion for Wisconsin Department of Corrections, et al. v. Keith D. Schacht, Justice Scalia argued that the majority misinterpreted the language and intent of Congress in its application of 28 U.S.C §1442(a)(1). He contended that this statute was not designed to allow federal officers or those acting under them to remove any state-law claim from state court simply because they were also facing a federal question in another part of their case. Rather, he believed it should only apply when a defendant could show they were sued for actions taken under color of federal office on each claim involved in their case. The majority's interpretation would lead to an unnecessary expansion of removal jurisdiction and disrupt the balance between state and federal courts established by Congress.