[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 394 Enrolled Bill (ENR)]
H.R.394
One Hundred Twelfth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the fifth day of January, two thousand and eleven
An Act
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 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'';
(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''.
(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) 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) 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) 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 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) 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. 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
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. 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. 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:
``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.
``(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. 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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.