[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3624 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 321
114th CONGRESS
  2d Session
                                H. R. 3624

                          [Report No. 114-422]

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 28, 2015

   Mr. Buck introduced the following bill; which was referred to the 
                       Committee on the Judiciary

                           February 16, 2016

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                          September 28, 2015]


_______________________________________________________________________

                                 A BILL


 
 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 the defendant or defendants described 
        in paragraph (1) (B) is fraudulent if the court finds that--
                    ``(A) there is actual fraud in the pleading of 
                jurisdictional facts;
                    ``(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 each defendant described in paragraph 
                (1)(B);
                    ``(C) State or Federal law clearly bars all claims 
                in the complaint against all defendants described in 
                paragraph (1)(B); or
                    ``(D) objective evidence clearly demonstrates that 
                there is no good faith intention to prosecute the 
                action against all defendants described in paragraph 
                (1)(B) or to seek a joint judgment.
            ``(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 fraudulent joinder under paragraph 
        (2), it shall dismiss without prejudice the claims against the 
        defendant or defendants found to have been fraudulently joined 
        and shall deny the motion described in paragraph (1)(B).''.
                                                 Union Calendar No. 321

114th CONGRESS

  2d Session

                               H. R. 3624

                          [Report No. 114-422]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                           February 16, 2016

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed