Text: H.R.394 — 112th Congress (2011-2012)All Information (Except Text)

Text available as:

Shown Here:
Public Law No: 112-63 (12/07/2011)

 
[112th Congress Public Law 63]
[From the U.S. Government Printing Office]



[[Page 757]]

     FEDERAL COURTS JURISDICTION AND VENUE CLARIFICATION ACT OF 2011

[[Page 125 STAT. 758]]

Public Law 112-63
112th Congress

                                 An Act


 
 To amend title 28, United States Code, to clarify the jurisdiction of 
      the Federal courts, and for other purposes. <<NOTE: Dec. 7, 
                          2011 -  [H.R. 394]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Federal Courts 
Jurisdiction and Venue Clarification Act of 2011. 28 USC 1 note.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Courts 
Jurisdiction and Venue Clarification Act of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

                  TITLE I--JURISDICTIONAL IMPROVEMENTS

Sec. 101. Treatment of resident aliens.
Sec. 102. Citizenship of corporations and insurance companies with 
           foreign contacts.
Sec. 103. Removal and remand procedures.
Sec. 104. Technical amendment.
Sec. 105. Effective date.

                TITLE II--VENUE AND TRANSFER IMPROVEMENTS

Sec. 201. Scope and definitions.
Sec. 202. Venue generally.
Sec. 203. Repeal of section 1392.
Sec. 204. Change of venue.
Sec. 205. Effective date.

                  TITLE I--JURISDICTIONAL IMPROVEMENTS

SEC. 101. TREATMENT OF RESIDENT ALIENS.

    Section 1332(a) of title 28, United States Code, is amended--
            (1) by striking the last sentence; and
            (2) in paragraph (2), by inserting after ``foreign state'' 
        the following: ``, except that the district courts shall not 
        have original jurisdiction under this subsection of an action 
        between citizens of a State and citizens or subjects of a 
        foreign state who are lawfully admitted for permanent residence 
        in the United States and are domiciled in the same State''.
SEC. 102. CITIZENSHIP OF CORPORATIONS AND INSURANCE COMPANIES WITH 
                        FOREIGN CONTACTS.

    Section 1332(c)(1) of title 28, United States Code, is amended--
            (1) by striking ``any State'' and inserting ``every State 
        and foreign state'';

[[Page 125 STAT. 759]]

            (2) by striking ``the State'' and inserting ``the State or 
        foreign state''; and
            (3) by striking all that follows ``party-defendant,'' and 
        inserting ``such insurer shall be deemed a citizen of--
                    ``(A) every State and foreign state of which the 
                insured is a citizen;
                    ``(B) every State and foreign state by which the 
                insurer has been incorporated; and
                    ``(C) the State or foreign state where the insurer 
                has its principal place of business; and''.
SEC. 103. REMOVAL AND REMAND PROCEDURES.

    (a) Actions Removable Generally.--Section 1441 of title 28, United 
States Code, is amended as follows:
            (1) The section heading is amended by striking ``Actions 
        removable generally'' and inserting ``Removal of civil 
        actions''.
            (2) Subsection (a) is amended--
                    (A) by striking ``(a) Except'' and inserting ``(a) 
                Generally.--Except''; and
                    (B) by striking the last sentence;
            (3) Subsection (b) is amended to read as follows:

    ``(b) Removal Based on Diversity of Citizenship.--(1) In determining 
whether a civil action is removable on the basis of the jurisdiction 
under section 1332(a) of this title, the citizenship of defendants sued 
under fictitious names shall be disregarded.
    ``(2) A civil action otherwise removable solely on the basis of the 
jurisdiction under section 1332(a) of this title may not be removed if 
any of the parties in interest properly joined and served as defendants 
is a citizen of the State in which such action is brought.''.
            (4) Subsection (c) is amended to read as follows:

    ``(c) Joinder of Federal Law Claims and State Law Claims.--(1) If a 
civil action includes--
            ``(A) a claim arising under the Constitution, laws, or 
        treaties of the United States (within the meaning of section 
        1331 of this title), and
            ``(B) a claim not within the original or supplemental 
        jurisdiction of the district court or a claim that has been made 
        nonremovable by statute,

the entire action may be removed if the action would be removable 
without the inclusion of the claim described in subparagraph (B).
    ``(2) Upon removal of an action described in paragraph (1), the 
district court shall sever from the action all claims described in 
paragraph (1)(B) and shall remand the severed claims to the State court 
from which the action was removed. Only defendants against whom a claim 
described in paragraph (1)(A) has been asserted are required to join in 
or consent to the removal under paragraph (1).''.
            (5) Subsection (d) is amended by striking ``(d) Any'' and 
        inserting ``(d) Actions Against Foreign States.--Any''.
            (6) Subsection (e) is amended by striking ``(e)(1) 
        Notwithstanding'' and inserting ``(e) Multiparty, Multiforum 
        Jurisdiction.--(1) Notwithstanding''.
            (7) Subsection (f) is amended by striking ``(f) The court'' 
        and inserting ``(f) Derivative Removal Jurisdiction.--The 
        court''.

[[Page 125 STAT. 760]]

    (b) Procedure for Removal of Civil Actions.--Section 1446 of title 
28, United States Code, is amended as follows:
            (1) The section heading is amended to read as follows:
``Sec. 1446. Procedure for removal of civil actions''.
            (2) Subsection (a) is amended--
                    (A) by striking ``(a) A defendant'' and inserting 
                ``(a) Generally.--A defendant''; and
                    (B) by striking ``or criminal prosecution''.
            (3) Subsection (b) is amended--
                    (A) by striking ``(b) The notice'' and inserting 
                ``(b) Requirements; Generally.--(1) The notice''; and
                    (B) by striking the second paragraph and inserting 
                the following:

    ``(2)(A) <<NOTE: Notice.>> When a civil action is removed solely 
under section 1441(a), all defendants who have been properly joined and 
served must join in or consent to the removal of the action.

    ``(B) <<NOTE: Deadline.>> Each defendant shall have 30 days after 
receipt by or service on that defendant of the initial pleading or 
summons described in paragraph (1) to file the notice of removal.

    ``(C) If defendants are served at different times, and a later-
served defendant files a notice of removal, any earlier-served defendant 
may consent to the removal even though that earlier-served defendant did 
not previously initiate or consent to removal.
    ``(3) <<NOTE: Notice. Deadline.>> Except as provided in subsection 
(c), if the case stated by the initial pleading is not removable, a 
notice of removal may be filed within thirty days after receipt by the 
defendant, through service or otherwise, of a copy of an amended 
pleading, motion, order or other paper from which it may first be 
ascertained that the case is one which is or has become removable.'';
                    (C) by striking subsection (c) and inserting the 
                following:

    ``(c) Requirements; Removal Based on Diversity of Citizenship.--(1) 
A case may not be removed under subsection (b)(3) on the basis of 
jurisdiction conferred by section 1332 more than 1 year after 
commencement of the action, unless the district court finds that the 
plaintiff has acted in bad faith in order to prevent a defendant from 
removing the action.
    ``(2) If removal of a civil action is sought on the basis of the 
jurisdiction conferred by section 1332(a), the sum demanded in good 
faith in the initial pleading shall be deemed to be the amount in 
controversy, except that--
            ``(A) the notice of removal may assert the amount in 
        controversy if the initial pleading seeks--
                    ``(i) nonmonetary relief; or
                    ``(ii) a money judgment, but the State practice 
                either does not permit demand for a specific sum or 
                permits recovery of damages in excess of the amount 
                demanded; and
            ``(B) removal of the action is proper on the basis of an 
        amount in controversy asserted under subparagraph (A) if the 
        district court finds, by the preponderance of the evidence, that 
        the amount in controversy exceeds the amount specified in 
        section 1332(a).

    ``(3)(A) If the case stated by the initial pleading is not removable 
solely because the amount in controversy does not exceed the amount 
specified in section 1332(a), information relating to the

[[Page 125 STAT. 761]]

amount in controversy in the record of the State proceeding, or in 
responses to discovery, shall be treated as an `other paper' under 
subsection (b)(3).
    ``(B) <<NOTE: Notice. Time period.>> If the notice of removal is 
filed more than 1 year after commencement of the action and the district 
court finds that the plaintiff deliberately failed to disclose the 
actual amount in controversy to prevent removal, that finding shall be 
deemed bad faith under paragraph (1).''.
            (4) Section 1446 is further amended--
                    (A) in subsection (d), by striking ``(d) Promptly'' 
                and inserting ``(d) Notice to Adverse Parties and State 
                Court.--Promptly'';
                    (B) by striking ``thirty days'' each place it 
                appears and inserting ``30 days'';
                    (C) by striking subsection (e); and
                    (D) in subsection (f), by striking ``(f) With 
                respect'' and inserting ``(e) Counterclaim in 337 
                Proceeding.--With respect''.

    (c) Procedure for Removal of Criminal Actions.--Chapter 89 of title 
28, United States Code, is amended by adding at the end the following 
new section:
``Sec. 1455. <<NOTE: 28 USC 1455. Notice.>> Procedure for removal 
                  of criminal prosecutions

    ``(a) Notice of Removal.--A defendant or defendants desiring to 
remove any criminal prosecution from a State court shall file in the 
district court of the United States for the district and division within 
which such prosecution is pending a notice of removal signed pursuant to 
Rule 11 of the Federal Rules of Civil Procedure and containing a short 
and plain statement of the grounds for removal, together with a copy of 
all process, pleadings, and orders served upon such defendant or 
defendants in such action.
    ``(b) Requirements.--(1) <<NOTE: Deadline.>> A notice of removal of 
a criminal prosecution shall be filed not later than 30 days after the 
arraignment in the State court, or at any time before trial, whichever 
is earlier, except that for good cause shown the United States district 
court may enter an order granting the defendant or defendants leave to 
file the notice at a later time.

    ``(2) A notice of removal of a criminal prosecution shall include 
all grounds for such removal. A failure to state grounds that exist at 
the time of the filing of the notice shall constitute a waiver of such 
grounds, and a second notice may be filed only on grounds not existing 
at the time of the original notice. For good cause shown, the United 
States district court may grant relief from the limitations of this 
paragraph.
    ``(3) The filing of a notice of removal of a criminal prosecution 
shall not prevent the State court in which such prosecution is pending 
from proceeding further, except that a judgment of conviction shall not 
be entered unless the prosecution is first remanded.
    ``(4) <<NOTE: Examination.>> The United States district court in 
which such notice is filed shall examine the notice promptly. If it 
clearly appears on the face of the notice and any exhibits annexed 
thereto that removal should not be permitted, the court shall make an 
order for summary remand.

    ``(5) If the United States district court does not order the summary 
remand of such prosecution, it shall order an evidentiary hearing to be 
held promptly and, after such hearing, shall make such disposition of 
the prosecution as justice shall <<NOTE: Notification.>> require. If the

[[Page 125 STAT. 762]]

United States district court determines that removal shall be permitted, 
it shall so notify the State court in which prosecution is pending, 
which shall proceed no further.

    ``(c) Writ of Habeas Corpus.--If the defendant or defendants are in 
actual custody on process issued by the State court, the district court 
shall issue its writ of habeas corpus, and the marshal shall thereupon 
take such defendant or defendants into the marshal's custody and deliver 
a copy of the writ to the clerk of such State court.''.
    (d) Conforming Amendments.--
            (1) The table of sections for chapter 89 of title 28, United 
        States Code, is amended--
                    (A) in the item relating to section 1441, by 
                striking ``Actions removable generally'' and inserting 
                ``Removal of civil actions'';
                    (B) in the item relating to section 1446, by 
                inserting ``of civil actions'' after ``removal''; and
                    (C) by adding at the end the following new item:

``1455. Procedure for removal of criminal prosecutions.''.

            (2) Section 1453(b) of title 28, United States Code, is 
        amended by striking ``1446(b)'' and inserting ``1446(c)(1)''.
SEC. 104. TECHNICAL AMENDMENT.

    Section 1446(g) of title 28, United States Code, is amended by 
striking ``subsections (b) and (c)'' and inserting ``subsection (b) of 
this section and paragraph (1) of section 1455(b)''.
SEC. 105. <<NOTE: 28 USC 1332 note. Time 
                        period. Applicability.>> EFFECTIVE DATE.

    (a) In General.--Subject to subsection (b), the amendments made by 
this title shall take effect upon the expiration of the 30-day period 
beginning on the date of the enactment of this Act, and shall apply to 
any action or prosecution commenced on or after such effective date.
    (b) Treatment of Cases Removed to Federal Court.--For purposes of 
subsection (a), an action or prosecution commenced in State court and 
removed to Federal court shall be deemed to commence on the date the 
action or prosecution was commenced, within the meaning of State law, in 
State court.

                TITLE II--VENUE AND TRANSFER IMPROVEMENTS

SEC. 201. SCOPE AND DEFINITIONS.

    (a) In General.--Chapter 87 of title 28, United States Code, is 
amended by inserting before section 1391 the following new section:
``Sec. 1390. <<NOTE: 28 USC 1390.>> Scope

    ``(a) Venue Defined.--As used in this chapter, the term `venue' 
refers to the geographic specification of the proper court or courts for 
the litigation of a civil action that is within the subject-matter 
jurisdiction of the district courts in general, and does not refer to 
any grant or restriction of subject-matter jurisdiction providing for a 
civil action to be adjudicated only by the district court for a 
particular district or districts.

[[Page 125 STAT. 763]]

    ``(b) Exclusion of Certain Cases.--Except as otherwise provided by 
law, this chapter shall not govern the venue of a civil action in which 
the district court exercises the jurisdiction conferred by section 1333, 
except that such civil actions may be transferred between district 
courts as provided in this chapter.
    ``(c) Clarification Regarding Cases Removed From State Courts.--This 
chapter shall not determine the district court to which a civil action 
pending in a State court may be removed, but shall govern the transfer 
of an action so removed as between districts and divisions of the United 
States district courts.''.
    (b) Conforming Amendment.--The table of sections at the beginning of 
chapter 87 of title 28, United States Code, is amended by inserting 
before the item relating to section 1391 the following new item:

``1390. Scope.''.

SEC. 202. VENUE GENERALLY.

    Section 1391 of title 28, United States Code, is amended as follows:
            (1) By striking subsections (a) through (d) and inserting 
        the following:

    ``(a) Applicability of Section.--Except as otherwise provided by 
law--
            ``(1) this section shall govern the venue of all civil 
        actions brought in district courts of the United States; and
            ``(2) the proper venue for a civil action shall be 
        determined without regard to whether the action is local or 
        transitory in nature.

    ``(b) Venue in General.--A civil action may be brought in--
            ``(1) a judicial district in which any defendant resides, if 
        all defendants are residents of the State in which the district 
        is located;
            ``(2) a judicial district in which a substantial part of the 
        events or omissions giving rise to the claim occurred, or a 
        substantial part of property that is the subject of the action 
        is situated; or
            ``(3) if there is no district in which an action may 
        otherwise be brought as provided in this section, any judicial 
        district in which any defendant is subject to the court's 
        personal jurisdiction with respect to such action.

    ``(c) Residency.--For all venue purposes--
            ``(1) a natural person, including an alien lawfully admitted 
        for permanent residence in the United States, shall be deemed to 
        reside in the judicial district in which that person is 
        domiciled;
            ``(2) an entity with the capacity to sue and be sued in its 
        common name under applicable law, whether or not incorporated, 
        shall be deemed to reside, if a defendant, in any judicial 
        district in which such defendant is subject to the court's 
        personal jurisdiction with respect to the civil action in 
        question and, if a plaintiff, only in the judicial district in 
        which it maintains its principal place of business; and
            ``(3) a defendant not resident in the United States may be 
        sued in any judicial district, and the joinder of such a 
        defendant shall be disregarded in determining where the action 
        may be brought with respect to other defendants.

[[Page 125 STAT. 764]]

    ``(d) Residency of Corporations in States With Multiple Districts.--
For purposes of venue under this chapter, in a State which has more than 
one judicial district and in which a defendant that is a corporation is 
subject to personal jurisdiction at the time an action is commenced, 
such corporation shall be deemed to reside in any district in that State 
within which its contacts would be sufficient to subject it to personal 
jurisdiction if that district were a separate State, and, if there is no 
such district, the corporation shall be deemed to reside in the district 
within which it has the most significant contacts.''.
            (2) In subsection (e)--
                    (A) in the first paragraph--
                          (i) by striking ``(1)'', ``(2)'', and ``(3)'' 
                      and inserting ``(A)'', ``(B)'', and ``(C)'', 
                      respectively; and
                          (ii) by striking ``(e) A civil action'' and 
                      inserting the following:

    ``(e) Actions Where Defendant Is Officer or Employee of the United 
States.--
            ``(1) In general.--A civil action''; and
                    (B) in the second undesignated paragraph by striking 
                ``The summons and complaint'' and inserting the 
                following:
            ``(2) Service.--The summons and complaint''.
            (3) In subsection (f), by striking ``(f) A civil action'' 
        and inserting ``(f) Civil Actions Against a Foreign State.--A 
        civil action''.
            (4) In subsection (g), by striking ``(g) A civil action'' 
        and inserting ``(g) Multiparty, Multiforum Litigation.--A civil 
        action''.
SEC. 203. REPEAL OF SECTION 1392.

    Section 1392 of title 28, United States Code, and the item relating 
to that section in the table of sections at the beginning of chapter 87 
of such title, are repealed.
SEC. 204. CHANGE OF VENUE.

    Section 1404 of title 28, United States Code, is amended--
            (1) in subsection (a), by inserting before the period at the 
        end the following: ``or to any district or division to which all 
        parties have consented''; and
            (2) in subsection (d), by striking ``As used in this 
        section,'' and inserting ``Transfers from a district court of 
        the United States to the District Court of Guam, the District 
        Court for the Northern Mariana Islands, or the District Court of 
        the Virgin Islands shall not be permitted under this section. As 
        otherwise used in this section,''.
SEC. 205. <<NOTE: 28 USC 1390 note.>> EFFECTIVE DATE.

    The amendments made by this title--
            (1) <<NOTE: Time period.>> shall take effect upon the 
        expiration of the 30-day period beginning on the date of the 
        enactment of this Act; and
            (2) <<NOTE: Applicability.>> shall apply to--
                    (A) any action that is commenced in a United States 
                district court on or after such effective date; and

[[Page 125 STAT. 765]]

                    (B) any action that is removed from a State court to 
                a United States district court and that had been 
                commenced, within the meaning of State law, on or after 
                such effective date.

    Approved December 7, 2011.

LEGISLATIVE HISTORY--H.R. 394 (S. 1636):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 112-10 (Comm. on the Judiciary).
CONGRESSIONAL RECORD, Vol. 157 (2011):
            Feb. 28, considered and passed House.
            Oct. 31, considered and passed Senate, amended.
            Nov. 18, House concurred in Senate amendments with an 
                amendment.
            Nov. 30, Senate concurred in House amendment.

                                  <all>