[Congressional Record Volume 170, Number 61 (Wednesday, April 10, 2024)]
[Senate]
[Pages S2708-S2710]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. McCONNELL (for himself, Mr. Cotton, and Mr. Tillis):
S. 4095. A bill to amend title 28, United States Code, to limit the
authority of district courts to provide injunctive relief, to modify
venue requirements relating to bankruptcy proceedings, and to ensure
that venue in patents cases is fair and proper, and for other purposes;
to the Committee on the Judiciary.
Mr. McCONNELL. Madam President, I ask unanimous consent that the text
of the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 4095
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLES.
This Act may be cited as the ``Stop Helping Outcome
Preferences Act'' or the ``SHOP Act''.
SEC. 2. NATIONWIDE INJUNCTION ABUSE PREVENTION.
(a) In General.--Chapter 85 of title 28, United States
Code, is amended by adding at the end the following:
``Sec. 1370. Limitation on authority to provide injunctive
relief
``Notwithstanding any other provision of law, a district
court may not issue any order providing injunctive relief
unless such order is applicable only to--
``(1) the parties to the case before the court; or
``(2) similarly situated individuals in the judicial
district in which the district court has jurisdiction.''.
(b) Clerical Amendment.--The chapter analysis for chapter
84 of title 28, United States Code, is amended by adding at
the end the following:
``1370. Limitation on authority to provide injunctive relief.''.
SEC. 3. PREVENTING JUDGE SHOPPING.
(a) In General.--Chapter 131 of title 28, United States
Code, is amended by inserting after section 2075 the
following:
``Sec. 2076. Preventing judge shopping
``(a) In General.--Rules promulgated under this chapter may
not permit an attorney to be admitted to practice in any
Federal court if a disciplinary body of judges properly
constituted under the rules and procedures of a Federal court
determines that such attorney has engaged in judge shopping.
``(b) Defined Term.--In this section, the term `judge
shopping' means attempting to interfere with a court's case
assignment process for the purpose of influencing the
assignment of a particular judge to preside over a particular
case by--
``(1) engaging in ex parte communications with a judge or a
judge's chambers;
``(2) successive filing of materially identical suits
within a State, district, or circuit without good cause;
``(3) successive filing of materially identical suits with
different plaintiffs;
``(4) improperly marking a suit as a related case under
existing court docketing practices; or
``(5) otherwise attempting to change the assignment of a
case after its filing, excepting a motion to recuse.''.
(b) Clerical Amendment.--The chapter analysis for chapter
131 of title 28, United States Code, is amended by inserting
after the item relating to section 2075 the following:
``2076. Preventing judge shopping.''.
SEC. 4. BANKRUPTCY VENUE REFORM.
(a) Short Title.--This section may be cited as the
``Bankruptcy Venue Reform Act of 2024''.
[[Page S2709]]
(b) Findings.--Congress finds the following:
(1) Bankruptcy laws provide a number of venue options for
filing bankruptcy under chapter 11 of title 11, United States
Code, including, with respect to the entity filing
bankruptcy--
(A) any district in which the place of incorporation of the
entity is located;
(B) any district in which the principal place of business
or principal assets of the entity are located; and
(C) any district in which an affiliate of the entity has
filed a pending case under title 11, United States Code.
(2) The wide range of permissible bankruptcy venue options
has led to an increase in companies filing for bankruptcy
outside of the district in which the principal place of
business or principal assets of the company is located, a
practice that is commonly known as ``forum shopping''.
(3) Forum shopping--
(A) has resulted in a concentration of bankruptcy cases in
a limited number of judicial districts;
(B) prevents small businesses, employees, retirees,
creditors, and other important stakeholders from fully
participating in bankruptcy cases that have tremendous
impacts on their lives, communities, and local economies; and
(C) deprives district courts of the United States and
courts of appeals of the United States of the opportunity to
contribute to the development of bankruptcy law in the
jurisdictions of those district courts.
(4) Reducing the incidence of forum shopping in the
bankruptcy system will strengthen the integrity of, and build
public confidence and ensure fairness in, the bankruptcy
system.
(c) Purpose.--The purpose of this section is to prevent the
practice of forum shopping in bankruptcy cases filed under
chapter 11 of title 11, United States Code.
(d) Venue of Cases Under Title 11.--Title 28, United States
Code, is amended--
(1) by amending 1408 to read as follows:
``Sec. 1408. Venue of cases under title 11
``(a) Principal Place of Business With Respect to Certain
Entities.--
``(1) In general.--Except as provided in paragraph (2), for
the purposes of this section, if any entity is subject to the
reporting requirements under section 13 or 15(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78m and 78o(d)),
the term `principal place of business', with respect to such
entity, means the address of the principal executive office
of the entity, as stated in the last annual report filed
under such Act before the commencement of a case under title
11 of which the entity is the subject.
``(2) Exception.--With respect to an entity described in
paragraph (1), the definition of `principal place of
business' shall apply, for purposes of this section, unless
another address is shown, by clear and convincing evidence,
to be the principal place of business of such entity.
``(b) Venue.--Except as provided in section 1410, a case
under title 11 may be commenced only in the district court
for the district--
``(1) in which the domicile, residence, or principal assets
in the United States of an individual who is the subject of
the case have been located--
``(A) during the 180-day period immediately preceding such
commencement; or
``(B) for a longer portion of such 180-day period than the
domicile, residence, or principal assets in the United States
of the individual were located in any other district;
``(2) in which the principal place of business or principal
assets in the United States of an entity, other than an
individual, that is the subject of the case have been
located--
``(A) during the 180-day period immediately preceding such
commencement; or
``(B) for a longer portion of such 180-day period than the
principal place of business or principal assets in the United
States of the entity were located in any other district; or
``(3) in which there is pending a case under title 11
concerning an affiliate that directly or indirectly owns,
controls, or holds 50 percent or more of the outstanding
voting securities of, or is the general partner of, the
entity that is the subject of the later filed case, but only
if the pending case was properly filed in such district in
accordance with this section.
``(c) Limitations.--
``(1) In general.--For purposes of paragraphs (2) and (3)
of subsection (b), no effect shall be given to a change in
the ownership or control of an entity that is the subject of
the case, or of an affiliate of such entity, or to a transfer
of the principal place of business or principal assets in the
United States, or to the merger, dissolution, spinoff, or
divisive merger of an entity that is the subject of the case,
or of an affiliate of such entity, to another district, if
such event takes place--
``(A) during the 1-year period immediately preceding the
date on which the case is commenced; or
``(B) for the purpose, in whole or in part, of establishing
venue.
``(2) Principal assets.--
``(A) Principal assets of an entity other than an
individual.--For purposes of subsection (b)(2) and paragraph
(1) of this subsection--
``(i) the term `principal assets' does not include cash or
cash equivalents; and
``(ii) any equity interest in an affiliate is located in
the district in which the holder of the equity interest has
its principal place of business in the United States, as
determined in accordance with subsection (b)(2).
``(B) Equity interests of individuals.--For purposes of
subsection (b)(1), if the holder of any equity interest in an
affiliate is an individual, the equity interest is located in
the district in which the domicile or residence in the United
States of the holder of the equity interest is located, as
determined in accordance with subsection (b)(1).
``(d) Burden of Proof.--On any objection to, or request to
change, venue under paragraph (2) or (3) of subsection (b) of
a case under title 11, the entity that commences the case
shall bear the burden of establishing, by clear and
convincing evidence, that venue is proper under this section.
``(e) Out-of-State Admission for Government Attorneys.--The
Supreme Court shall prescribe rules, in accordance with
section 2075, for cases or proceedings arising under title
11, or arising in or related to cases under title 11, to
allow any attorney representing a governmental unit to be
permitted to appear on behalf of the governmental unit and
intervene without charge, and without meeting any requirement
under any local court rule relating to attorney appearances
or the use of local counsel, before any bankruptcy court,
district court, or bankruptcy appellate panel.''; and
(2) to amend section 1412 to read as follows:
``Sec. 1412. Change of venue
``(a) In General.--Notwithstanding that a case or
proceeding under title 11, or arising in or related to a case
under title 11, is filed in the correct division or district,
a district court may transfer the case or proceeding to a
district court in another district or division--
``(1) in the interest of justice; or
``(2) for the convenience of the parties.
``(b) Incorrectly Filed Cases or Proceedings.--If a case or
proceeding under title 11, or arising in or related to a case
under title 11, is filed in a division or district that is
improper under section 1408(b), the district court shall--
``(1) immediately dismiss the case or proceeding; or
``(2) if it is in the interest of justice, immediately
transfer the case or proceeding to any district court for any
district or division in which the case or proceeding could
have been brought under such section.
``(c) Objections and Requests Relating to Changes in
Venue.--Not later than 14 days after the filing of an
objection to, or a request to change, venue of a case or
proceeding under title 11, or arising in or related to a case
under title 11, the court shall enter an order granting or
denying such objection or request.''.
SEC. 5. VENUE EQUITY IN PATENT CASES.
(a) Short Title.--This section may be cited as the ``Venue
Equity and Non-Uniformity Elimination Act of 2024''.
(b) Amendment.--Section 1400(b) of title 28, United States
Code, is amended to read as follows:
``(b) Notwithstanding subsections (b) and (c) of section
1391, any civil action for patent infringement or any action
for a declaratory judgment that a patent is invalid or not
infringed may be brought only in a judicial district--
``(1) in which the defendant has its principal place of
business or is incorporated;
``(2) in which the defendant has committed an act of
infringement of a patent in suit and has a regular and
established physical facility that gives rise to such act of
infringement;
``(3) in which the defendant has agreed or consented to be
sued in such action;
``(4) in which an inventor named on the patent in suit
conducted research or development that led to the application
for the patent in suit;
``(5) in which a party has a regular and established
physical facility that such party controls and operates, not
primarily for the purpose of creating venue, and has--
``(A) engaged in management of significant research and
development of an invention claimed in a patent in suit
before the effective filing date of the patent;
``(B) manufactured a tangible product that is alleged to
embody an invention claimed in a patent in suit; or
``(C) implemented a manufacturing process for a tangible
good in which the process is alleged to embody an invention
claimed in a patent in suit; or
``(6) in the case of a foreign defendant that does not meet
the requirements of paragraph (1) or (2), in accordance with
section 1391(c)(3).''.
(c) Mandamus Relief.--For the purpose of determining
whether relief may issue under section 1651 of title 28,
United States Code, a clearly and indisputably erroneous
denial of a motion under section 1406(a) of such title to
dismiss or transfer a case on the basis of section 1400(b) of
such title shall be deemed to cause irremediable interim
harm.
(d) Teleworkers.--The dwelling or residence of an employee
or contractor of a defendant who works at such dwelling or
residence shall not constitute a regular and established
physical facility of the defendant for purposes of section
1400(b)(2) of title 28, United States Code, as added by
subsection (a).
______
By Mr. SCHUMER (for himself, Mr. Whitehouse, Ms. Hirono, Mr.
Wyden, Mrs. Shaheen, Ms. Cortez Masto, Mr. Durbin, Mr.
Heinrich, Mr. Blumenthal, Mrs. Gillibrand, Mr.
[[Page S2710]]
Fetterman, Mr. Markey, Mr. Reed, Mr. Van Hollen, Mr. Warnock,
Ms. Duckworth, Ms. Hassan, Ms. Butler, Ms. Klobuchar, Mr.
Merkley, Ms. Warren, Mr. Kaine, Ms. Smith, Mr. Booker, Mr.
Welch, Mr. Warner, Ms. Baldwin, Mr. King, Mr. Carper, Mrs.
Murray, Mr. Schatz, Ms. Rosen, Ms. Cantwell, Mr. Sanders, Mr.
Cardin, Mr. Peters, Mr. Coons, Mr. Padilla, Mr. Lujan, and Mr.
Casey):
S. 4096. A bill to amend title 28, United States Code, to provide for
the random assignment of certain cases in the district courts of the
United States; to the Committee on the Judiciary.
Mr. SCHUMER. Madam President, I ask unanimous consent that the text
of the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 4096
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 ``End Judge Shopping Act''.
SEC. 2. DIVISION OF BUSINESS AMONG DISTRICT JUDGES.
Section 137 of title 28, United States Code, is amended by
adding at the end the following:
``(c) Random Assignment of Other Cases.--
``(1) Definition.--In this subsection, the term `law'
includes, with respect to an executive branch or a State or
Federal agency, a rule, a regulation, a policy, and an order.
``(2) Random assignment.--Any civil action brought for
declaratory, injunctive, or other equitable relief seeking
(whether facially or as-applied) to challenge the
constitutionality or lawfulness of, or to bar, restrain,
vacate, set aside, or mandate the enforcement of, any
provision of a Federal law on a nationwide basis, or any
provision of a State law on a statewide basis in that State,
shall be randomly assigned to a judge of the district court
in which the civil action is filed.''.
____________________