A federal judge this week ruled that federal court is not the proper venue to mount a legal challenge against Measure ULA, the property transfer tax that went into effect in Los Angeles this year. 

Judge John Kronstadt dismissed a federal lawsuit Newcastle Courtyards filed against the City of Los Angeles claiming that the new transfer tax violates the equal protection clause of the US Constitution.

"Federal Courts are courts of limited jurisdiction. Accordingly, when a federal court finds that it lacks subject matter jurisdiction, it must dismiss the case in its entirety," Kronstadt wrote, in his ruling.

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