[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3624 Referred in Senate (RFS)]

<DOC>
114th CONGRESS
  2d Session
                                H. R. 3624


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 29, 2016

  Received; read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 AN ACT


 
 To amend title 28, United States Code, to prevent fraudulent joinder.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fraudulent Joinder Prevention Act of 
2016''.

SEC. 2. PREVENTION OF FRAUDULENT JOINDER.

    Section 1447 of title 28, United States Code, is amended by adding 
at the end the following:
    ``(f) Fraudulent Joinder.--
            ``(1) This subsection shall apply to any case in which--
                    ``(A) a civil action is removed solely on the basis 
                of the jurisdiction conferred by section 1332(a);
                    ``(B) a motion to remand is made on the ground 
                that--
                            ``(i) one or more defendants are citizens 
                        of the same State as one or more plaintiffs; or
                            ``(ii) one or more defendants properly 
                        joined and served are citizens of the State in 
                        which the action was brought; and
                    ``(C) the motion is opposed on the ground that the 
                joinder of the defendant or defendants described in 
                subparagraph (B) is fraudulent.
            ``(2) The joinder of a defendant described in paragraph 
        (1)(B) is fraudulent if the court finds that--
                    ``(A) there is actual fraud in the pleading of 
                jurisdictional facts with respect to that defendant;
                    ``(B) based on the complaint and the materials 
                submitted under paragraph (3), it is not plausible to 
                conclude that applicable State law would impose 
                liability on that defendant;
                    ``(C) State or Federal law clearly bars all claims 
                in the complaint against that defendant; or
                    ``(D) objective evidence clearly demonstrates that 
                there is no good faith intention to prosecute the 
                action against that defendant or to seek a joint 
                judgment including that defendant.
            ``(3) In determining whether to grant or deny a motion 
        under paragraph (1)(B), the court may permit the pleadings to 
        be amended, and shall consider the pleadings, affidavits, and 
        other evidence submitted by the parties.
            ``(4) If the court finds that all defendants described in 
        paragraph (1)(B) have been fraudulently joined under paragraph 
        (2), it shall dismiss without prejudice the claims against 
        those defendants and shall deny the motion described in 
        paragraph (1)(B).''.

            Passed the House of Representatives February 25, 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.