[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4113 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4113

 To amend title 28, United States Code, to clarify the jurisdiction of 
              the Federal courts, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 19, 2009

Mr. Smith of Texas (for himself and Mr. Coble) introduced the following 
       bill; which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To amend title 28, United States Code, to clarify the jurisdiction of 
              the Federal courts, 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 TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Courts 
Jurisdiction and Venue Clarification Act of 2009''.
    (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. Indexing the amount in controversy.
Sec. 104. Facilitating use of declarations to specify damages.
Sec. 105. Removal and remand procedures.
Sec. 106. 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. Cure or waiver of defects.
Sec. 206. 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'';
            (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. INDEXING THE AMOUNT IN CONTROVERSY.

    (a) In General.--Section 1332 of title 28, United States Code, is 
amended by adding at the end the following new subsection:
    ``(f)(1) Effective on January 1, 2011, and January 1 of each fifth 
year thereafter, the dollar amount then in effect as the minimum amount 
in controversy applicable under subsection (a) shall be adjusted by an 
amount, rounded to the nearest $5,000 (or, if midway between multiples 
of $5,000, to the next higher multiple of $5,000), which reflects the 
change in the Consumer Price Index for the month of September of the 
appropriate year, over the Consumer Price Index for the month of 
September of the fifth year preceding the appropriate year.
    ``(2) The Director of the Administrative Office of the United 
States Courts shall determine the amount of each adjustment under 
paragraph (1) and, not later than November 15 of the appropriate year, 
shall submit for publication in the Federal Register the amount (and 
the percentage change in the Consumer Price Index that is the basis for 
the amount) and the new minimum amount in controversy to take effect on 
January 1 of the succeeding calendar year.
    ``(3) As used in this subsection--
            ``(A) the term `appropriate year' means the calendar year 
        preceding the calendar year in which the adjustment under 
        paragraph (1) is to take effect; and
            ``(B) the term `Consumer Price Index' means the Consumer 
        Price Index for All Urban Consumers published by the Department 
        of Labor.''.
    (b) Conforming Amendment.--Section 1332(a) of title 28, United 
States Code, is amended by inserting ``as adjusted under subsection 
(f),'' after ``$75,000,''.

SEC. 104. FACILITATING USE OF DECLARATIONS TO SPECIFY DAMAGES.

    (a) Removal Generally.--Section 1441(a) of title 28, United States 
Code, is amended by adding at the end the following new sentence: ``If 
the plaintiff has filed a declaration in State court, as part of or in 
addition to the initial pleading, providing that the plaintiff will 
neither seek nor accept an award of damages or entry of other relief 
exceeding the amount specified in section 1332(a), the case may not be 
removed on the basis of the jurisdiction under section 1332(a) as long 
as the plaintiff abides by the declaration and the declaration is 
binding under the laws and practice of the State. If the plaintiff has 
filed such a declaration in State court but thereafter fails to abide 
by that declaration, the defendant or defendants may file a notice of 
removal within 30 days after receiving, through service or otherwise, a 
copy of an amended pleading, motion, order or other paper from which it 
may first be ascertained that the plaintiff seeks or is willing to 
accept an award of damages or other relief exceeding the amount 
specified in section 1332(a).''.
    (b) Procedure After Removal.--Section 1447 of title 28, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(f) Within 30 days after the filing of a notice of removal of a 
civil action in which the district court's removal jurisdiction rests 
solely on original jurisdiction under section 1332(a), the plaintiff 
may file a declaration with the district court providing that the 
plaintiff will neither seek nor accept an award of damages or entry of 
other relief exceeding the amount specified in section 1332(a) of this 
title. Upon the filing of such a declaration, the district court shall 
remand the action to State court unless equitable circumstances warrant 
retaining the case.''.

SEC. 105. REMOVAL AND REMAND PROCEDURES.

    (a) Actions Removable Generally.--Section 1441 of title 28, United 
States Code, is amended--
            (1) by amending subsection (c) to read as follows:
    ``(c)(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).''; and
            (2) in subsection (f), by striking ``under this section'' 
        and inserting ``under this title or other applicable law''.
    (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 by striking ``or criminal 
        prosecution''.
            (3) Subsection (b) is amended--
                    (A) by inserting ``(1)'' after ``(b)'';
                    (B) by designating the second paragraph as 
                paragraph (3);
                    (C) by inserting after paragraph (1) (as designated 
                by subparagraph (A) of this paragraph) the following:
    ``(2) 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. A 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. 
During the 30-day period before a defendant files a notice of removal, 
any other defendant served before the beginning of that 30-day period 
may consent to the removal by the later-served defendant even though 
that earlier-served defendant did not previously initiate or consent to 
removal.'';
                    (D) in paragraph (3) (as designated by subparagraph 
                (B) of this paragraph), by striking ``action.'' and 
                inserting ``action, unless equitable considerations 
                warrant removal. Such equitable considerations include 
                whether the plaintiff has acted in bad faith, whether 
                the defendant has acted diligently in seeking to remove 
                the action, and whether the case has progressed in 
                State court to a point where removal would be 
                disruptive.''; and
                    (E) by adding at the end the following:
    ``(4) 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).
    ``(5)(A) In a case to which paragraph (3) applies that is not 
removable solely because the amount in controversy does not exceed the 
amount specified in section 1332(a), information relating to the amount 
in controversy in the record of the State proceeding, or in responses 
to discovery, shall be treated as an `other paper' under paragraph (3). 
If the defendant first receives such a paper, through service or 
otherwise, within 1 year after the commencement of the action but 
during the trial or within 30 days before the date set for trial, 
removal may be had only upon a finding that the plaintiff deliberately 
failed to disclose the actual amount in controversy in order to prevent 
removal.
    ``(B) If the notice of removal is filed more than 1 year after 
commencement of the action and a finding is made that the plaintiff 
deliberately failed to disclose the actual amount in controversy to 
prevent removal, that finding shall be deemed an equitable 
consideration under paragraph (3) that warrants removal.''.
            (4) Section 1446 is further amended--
                    (A) by striking ``thirty days'' each place it 
                appear and inserting ``30 days'';
                    (B) by striking subsections (c) and (e); and
                    (C) by redesignating subsections (d) and (f) as 
                subsections (c) and (d), respectively.
    (c) Procedure for Removal of Criminal Actions.--Chapter 89 of title 
28, United States Code, is amended by inserting after section 1446 the 
following new section:
``Sec. 1446a. 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) 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) 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 require. If the 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 
delivery a copy of the writ to the clerk of such State court.''.
    (d) Conforming Amendments.--The table of sections for chapter 89 of 
title 28, United States Code, is amended--
            (1) in the item relating to section 1446, by inserting ``of 
        civil actions'' after ``removal''; and
            (2) by inserting after the item relating to section 1446 
        the following new item:

``1446a. Procedure for removal of criminal prosecutions.''.

SEC. 106. EFFECTIVE DATE.

    (a) In General.--Subject to subsections (b) and (c), 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) Applicability of Change in Jurisdictional Amount.--Any change 
in the amount in controversy under section 1332(a) of title 28, United 
States Code, that is made pursuant to the amendments made by section 
103 shall apply to any action commenced on or after the date such 
change becomes effective.
    (c) Treatment of Cases Removed to Federal Court.--For purposes of 
subsections (a) and (b), 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 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. 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.
    ``(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:

``Sec. 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) a party 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 in 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.
    ``(d) Divisions Within District.--Notwithstanding any other 
provision of law, a civil action that may be brought in a judicial 
district may be brought in any division thereof, subject to the power 
of the district court to provide by local rule or court order for a 
civil action to be brought in a particular division and for the 
transfer of any civil action between divisions of the district.''.
            (2) By redesignating subsections (e), (f), and (g) as 
        subsections (f), (g), and (h), respectively, and inserting 
        after subsection (d) the following new subsection:
    ``(e) 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.''.
            (3) In subsection (f), as redesignated--
                    (A) in the first paragraph--
                            (i) by striking ``(1)'', ``(2)'', and 
                        ``(3)'' and inserting ``(A)'', ``(B)'', and 
                        ``(C)'', respectively; and
                            (ii) by striking ``(f) A civil action'' and 
                        inserting the following:
    ``(f) 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''.
            (4) In subsection (g), as redesignated, by striking ``(g) A 
        civil action'' and inserting ``(g) Civil Actions Against a 
        Foreign State.--A civil action''.
            (5) In subsection (h), as redesignated, by striking ``(h) A 
        civil action'' and inserting ``(h) 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 striking ``or division where it 
        might have been brought'';
            (2) in subsection (b), by striking the first sentence and 
        inserting the following: ``Any civil action may, in the 
        discretion of the district court, be transferred anywhere 
        within the district for trial or for any other phase of the 
        litigation.'';
            (3) by striking subsection (c); and
            (4) in subsection (d)--
                    (A) by redesignating subsection (d) as subsection 
                (c); and
                    (B) 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. CURE OR WAIVER OF DEFECTS.

    Section 1406(a) of title 28, United States Code, is amended--
            (1) by striking ``division or''; and
            (2) by striking ``or division''.

SEC. 206. EFFECTIVE DATE.

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