[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4095 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 4095
To amend title 28, United States Code, to limit the authority of
district courts to provide injunctive relief, to modify venue
requirements relating to bankruptcy proceedings, and to ensure that
venue in patents cases is fair and proper, and for other purposes..
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 10, 2024
Mr. McConnell (for himself, Mr. Cotton, and Mr. Tillis) introduced the
following bill; which was read twice and referred to the Committee on
the Judiciary
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A BILL
To amend title 28, United States Code, to limit the authority of
district courts to provide injunctive relief, to modify venue
requirements relating to bankruptcy proceedings, and to ensure that
venue in patents cases is fair and proper, and for other purposes..
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLES.
This Act may be cited as the ``Stop Helping Outcome Preferences
Act'' or the ``SHOP Act''.
SEC. 2. NATIONWIDE INJUNCTION ABUSE PREVENTION.
(a) In General.--Chapter 85 of title 28, United States Code, is
amended by adding at the end the following:
``Sec. 1370. Limitation on authority to provide injunctive relief
``Notwithstanding any other provision of law, a district court may
not issue any order providing injunctive relief unless such order is
applicable only to--
``(1) the parties to the case before the court; or
``(2) similarly situated individuals in the judicial
district in which the district court has jurisdiction.''.
(b) Clerical Amendment.--The chapter analysis for chapter 84 of
title 28, United States Code, is amended by adding at the end the
following:
``1370. Limitation on authority to provide injunctive relief.''.
SEC. 3. PREVENTING JUDGE SHOPPING.
(a) In General.--Chapter 131 of title 28, United States Code, is
amended by inserting after section 2075 the following:
``Sec. 2076. Preventing judge shopping
``(a) In General.--Rules promulgated under this chapter may not
permit an attorney to be admitted to practice in any Federal court if a
disciplinary body of judges properly constituted under the rules and
procedures of a Federal court determines that such attorney has engaged
in judge shopping.
``(b) Defined Term.--In this section, the term `judge shopping'
means attempting to interfere with a court's case assignment process
for the purpose of influencing the assignment of a particular judge to
preside over a particular case by--
``(1) engaging in ex parte communications with a judge or a
judge's chambers;
``(2) successive filing of materially identical suits
within a State, district, or circuit without good cause;
``(3) successive filing of materially identical suits with
different plaintiffs;
``(4) improperly marking a suit as a related case under
existing court docketing practices; or
``(5) otherwise attempting to change the assignment of a
case after its filing, excepting a motion to recuse.''.
(b) Clerical Amendment.--The chapter analysis for chapter 131 of
title 28, United States Code, is amended by inserting after the item
relating to section 2075 the following:
``2076. Preventing judge shopping.''.
SEC. 4. BANKRUPTCY VENUE REFORM.
(a) Short Title.--This section may be cited as the ``Bankruptcy
Venue Reform Act of 2024''.
(b) Findings.--Congress finds the following:
(1) Bankruptcy laws provide a number of venue options for
filing bankruptcy under chapter 11 of title 11, United States
Code, including, with respect to the entity filing bankruptcy--
(A) any district in which the place of
incorporation of the entity is located;
(B) any district in which the principal place of
business or principal assets of the entity are located;
and
(C) any district in which an affiliate of the
entity has filed a pending case under title 11, United
States Code.
(2) The wide range of permissible bankruptcy venue options
has led to an increase in companies filing for bankruptcy
outside of the district in which the principal place of
business or principal assets of the company is located, a
practice that is commonly known as ``forum shopping''.
(3) Forum shopping--
(A) has resulted in a concentration of bankruptcy
cases in a limited number of judicial districts;
(B) prevents small businesses, employees, retirees,
creditors, and other important stakeholders from fully
participating in bankruptcy cases that have tremendous
impacts on their lives, communities, and local
economies; and
(C) deprives district courts of the United States
and courts of appeals of the United States of the
opportunity to contribute to the development of
bankruptcy law in the jurisdictions of those district
courts.
(4) Reducing the incidence of forum shopping in the
bankruptcy system will strengthen the integrity of, and build
public confidence and ensure fairness in, the bankruptcy
system.
(c) Purpose.--The purpose of this section is to prevent the
practice of forum shopping in bankruptcy cases filed under chapter 11
of title 11, United States Code.
(d) Venue of Cases Under Title 11.--Title 28, United States Code,
is amended--
(1) by amending 1408 to read as follows:
``Sec. 1408. Venue of cases under title 11
``(a) Principal Place of Business With Respect to Certain
Entities.--
``(1) In general.--Except as provided in paragraph (2), for
the purposes of this section, if any entity is subject to the
reporting requirements under section 13 or 15(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78m and 78o(d)), the
term `principal place of business', with respect to such
entity, means the address of the principal executive office of
the entity, as stated in the last annual report filed under
such Act before the commencement of a case under title 11 of
which the entity is the subject.
``(2) Exception.--With respect to an entity described in
paragraph (1), the definition of `principal place of business'
shall apply, for purposes of this section, unless another
address is shown, by clear and convincing evidence, to be the
principal place of business of such entity.
``(b) Venue.--Except as provided in section 1410, a case under
title 11 may be commenced only in the district court for the district--
``(1) in which the domicile, residence, or principal assets
in the United States of an individual who is the subject of the
case have been located--
``(A) during the 180-day period immediately
preceding such commencement; or
``(B) for a longer portion of such 180-day period
than the domicile, residence, or principal assets in
the United States of the individual were located in any
other district;
``(2) in which the principal place of business or principal
assets in the United States of an entity, other than an
individual, that is the subject of the case have been located--
``(A) during the 180-day period immediately
preceding such commencement; or
``(B) for a longer portion of such 180-day period
than the principal place of business or principal
assets in the United States of the entity were located
in any other district; or
``(3) in which there is pending a case under title 11
concerning an affiliate that directly or indirectly owns,
controls, or holds 50 percent or more of the outstanding voting
securities of, or is the general partner of, the entity that is
the subject of the later filed case, but only if the pending
case was properly filed in such district in accordance with
this section.
``(c) Limitations.--
``(1) In general.--For purposes of paragraphs (2) and (3)
of subsection (b), no effect shall be given to a change in the
ownership or control of an entity that is the subject of the
case, or of an affiliate of such entity, or to a transfer of
the principal place of business or principal assets in the
United States, or to the merger, dissolution, spinoff, or
divisive merger of an entity that is the subject of the case,
or of an affiliate of such entity, to another district, if such
event takes place--
``(A) during the 1-year period immediately
preceding the date on which the case is commenced; or
``(B) for the purpose, in whole or in part, of
establishing venue.
``(2) Principal assets.--
``(A) Principal assets of an entity other than an
individual.--For purposes of subsection (b)(2) and
paragraph (1) of this subsection--
``(i) the term `principal assets' does not
include cash or cash equivalents; and
``(ii) any equity interest in an affiliate
is located in the district in which the holder
of the equity interest has its principal place
of business in the United States, as determined
in accordance with subsection (b)(2).
``(B) Equity interests of individuals.--For
purposes of subsection (b)(1), if the holder of any
equity interest in an affiliate is an individual, the
equity interest is located in the district in which the
domicile or residence in the United States of the
holder of the equity interest is located, as determined
in accordance with subsection (b)(1).
``(d) Burden of Proof.--On any objection to, or request to change,
venue under paragraph (2) or (3) of subsection (b) of a case under
title 11, the entity that commences the case shall bear the burden of
establishing, by clear and convincing evidence, that venue is proper
under this section.
``(e) Out-of-State Admission for Government Attorneys.--The Supreme
Court shall prescribe rules, in accordance with section 2075, for cases
or proceedings arising under title 11, or arising in or related to
cases under title 11, to allow any attorney representing a governmental
unit to be permitted to appear on behalf of the governmental unit and
intervene without charge, and without meeting any requirement under any
local court rule relating to attorney appearances or the use of local
counsel, before any bankruptcy court, district court, or bankruptcy
appellate panel.''; and
(2) to amend section 1412 to read as follows:
``Sec. 1412. Change of venue
``(a) In General.--Notwithstanding that a case or proceeding under
title 11, or arising in or related to a case under title 11, is filed
in the correct division or district, a district court may transfer the
case or proceeding to a district court in another district or
division--
``(1) in the interest of justice; or
``(2) for the convenience of the parties.
``(b) Incorrectly Filed Cases or Proceedings.--If a case or
proceeding under title 11, or arising in or related to a case under
title 11, is filed in a division or district that is improper under
section 1408(b), the district court shall--
``(1) immediately dismiss the case or proceeding; or
``(2) if it is in the interest of justice, immediately
transfer the case or proceeding to any district court for any
district or division in which the case or proceeding could have
been brought under such section.
``(c) Objections and Requests Relating to Changes in Venue.--Not
later than 14 days after the filing of an objection to, or a request to
change, venue of a case or proceeding under title 11, or arising in or
related to a case under title 11, the court shall enter an order
granting or denying such objection or request.''.
SEC. 5. VENUE EQUITY IN PATENT CASES.
(a) Short Title.--This section may be cited as the ``Venue Equity
and Non-Uniformity Elimination Act of 2024''.
(b) Amendment.--Section 1400(b) of title 28, United States Code, is
amended to read as follows:
``(b) Notwithstanding subsections (b) and (c) of section 1391, any
civil action for patent infringement or any action for a declaratory
judgment that a patent is invalid or not infringed may be brought only
in a judicial district--
``(1) in which the defendant has its principal place of
business or is incorporated;
``(2) in which the defendant has committed an act of
infringement of a patent in suit and has a regular and
established physical facility that gives rise to such act of
infringement;
``(3) in which the defendant has agreed or consented to be
sued in such action;
``(4) in which an inventor named on the patent in suit
conducted research or development that led to the application
for the patent in suit;
``(5) in which a party has a regular and established
physical facility that such party controls and operates, not
primarily for the purpose of creating venue, and has--
``(A) engaged in management of significant research
and development of an invention claimed in a patent in
suit before the effective filing date of the patent;
``(B) manufactured a tangible product that is
alleged to embody an invention claimed in a patent in
suit; or
``(C) implemented a manufacturing process for a
tangible good in which the process is alleged to embody
an invention claimed in a patent in suit; or
``(6) in the case of a foreign defendant that does not meet
the requirements of paragraph (1) or (2), in accordance with
section 1391(c)(3).''.
(c) Mandamus Relief.--For the purpose of determining whether relief
may issue under section 1651 of title 28, United States Code, a clearly
and indisputably erroneous denial of a motion under section 1406(a) of
such title to dismiss or transfer a case on the basis of section
1400(b) of such title shall be deemed to cause irremediable interim
harm.
(d) Teleworkers.--The dwelling or residence of an employee or
contractor of a defendant who works at such dwelling or residence shall
not constitute a regular and established physical facility of the
defendant for purposes of section 1400(b)(2) of title 28, United States
Code, as added by subsection (a).
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