[House Report 115-29]
[From the U.S. Government Publishing Office]





115th Congress    {                                   }      Report
                        HOUSE OF REPRESENTATIVES
 1st Session      {                                   }        115-29

======================================================================

 
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 720) TO AMEND RULE 11 OF 
       THE FEDERAL RULES OF CIVIL PROCEDURE TO IMPROVE ATTORNEY 
ACCOUNTABILITY, AND FOR OTHER PURPOSES, AND PROVIDING FOR CONSIDERATION 
 OF THE BILL (H.R. 985) TO AMEND THE PROCEDURES USED IN FEDERAL COURT 
   CLASS ACTIONS AND MULTIDISTRICT LITIGATION PROCEEDINGS TO ASSURE 
 FAIRER, MORE EFFICIENT OUTCOMES FOR CLAIMANTS AND DEFENDANTS, AND FOR 
                             OTHER PURPOSES

                                _______
                                

   March 8, 2017.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

         Mr. Collins of Georgia, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 180]

    The Committee on Rules, having had under consideration 
House Resolution 180, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 720, the 
Lawsuit Abuse Reduction Act of 2017, under a structured rule. 
The resolution provides one hour of general debate equally 
divided and controlled by the chair and ranking minority member 
of the Committee on the Judiciary. The resolution waives all 
points of order against consideration of the bill. The 
resolution provides that the bill shall be considered as read. 
The resolution waives all points of order against provisions in 
the bill. The resolution makes in order only those amendments 
printed in part A of this report. Each such amendment may be 
offered only in the order printed in this report, may be 
offered only by a Member designated in this report, shall be 
considered as read, shall be debatable for the time specified 
in this report equally divided and controlled by the proponent 
and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for division of the question in the 
House or in the Committee of the Whole. The resolution waives 
all points of order against the amendments printed in part A of 
this report. The resolution provides one motion to recommit 
with or without instructions.
    Section 2 of the resolution provides for consideration of 
H.R. 985, the Fairness in Class Action Litigation Act of 2017, 
under a structured rule. The resolution provides one hour of 
general debate equally divided and controlled by the chair and 
ranking minority member of the Committee on the Judiciary. The 
resolution waives all points of order against consideration of 
the bill. The resolution makes in order as original text for 
the purpose of amendment an amendment in the nature of a 
substitute consisting of the text of Rules Committee Print 115-
5 and provides that it shall be considered as read. The 
resolution waives all points of order against that amendment in 
the nature of a substitute. The resolution makes in order only 
those further amendments printed in part B of this report. Each 
such amendment may be offered only in the order printed in this 
report, may be offered only by a Member designated in this 
report, shall be considered as read, shall be debatable for the 
time specified in this report equally divided and controlled by 
the proponent and an opponent, shall not be subject to 
amendment, and shall not be subject to a demand for division of 
the question in the House or in the Committee of the Whole. The 
resolution waives all points of order against the amendments 
printed in part B of this report. The resolution provides for 
one motion to recommit with or without instructions.

                         EXPLANATION OF WAIVERS

    Although the resolution waives all points of order against 
consideration of H.R. 720, the Committee is not aware of any 
points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
provisions in H.R. 720, the Committee is not aware of any 
points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
the amendments to H.R. 720 printed in part A of this report, 
the Committee is not aware of any points of order. The waiver 
is prophylactic in nature.
    Although the resolution waives all points of order against 
consideration of H.R. 985, the Committee is not aware of any 
points of order. The waiver is prophylactic in nature.
    The waiver of all points of order against the amendment in 
the nature of a substitute to H.R. 985 made in order as 
original text includes a waiver of clause 7 of rule XVI, which 
requires that no motion or proposition on a subject different 
from that under consideration shall be admitted under color of 
amendment.
    Although the resolution waives all points of order against 
the amendments to H.R. 985 printed in part B of this report, 
the Committee is not aware of any points of order. The waiver 
is prophylactic in nature.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 32

    Motion by Mr. Hastings of Florida to make in order and 
provide the appropriate waivers to amendment #12 to H.R. 985, 
offered by Rep. Cicilline (RI), which exempts service members, 
veterans, and their families from the information production 
requirements under title II of the bill. Defeated: 4-8

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Cole........................................          Nay   Ms. Slaughter.....................          Yea
Mr. Woodall.....................................          Nay   Mr. McGovern......................          Yea
Mr. Burgess.....................................  ............  Mr. Hastings of Florida...........          Yea
Mr. Collins.....................................          Nay   Mr. Polis.........................          Yea
Mr. Byrne.......................................          Nay
Mr. Newhouse....................................          Nay
Mr. Buck........................................          Nay
Ms. Cheney......................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 33

    Motion by Mr. Polis to make in order and provide the 
appropriate waivers to amendment #6 to H.R. 985, offered by 
Rep. Moore (WI), which exempts gender discrimination and sexual 
harassment claims from the bill's class action provisions. 
Defeated: 4-8

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Cole........................................          Nay   Ms. Slaughter.....................          Yea
Mr. Woodall.....................................          Nay   Mr. McGovern......................          Yea
Mr. Burgess.....................................  ............  Mr. Hastings of Florida...........          Yea
Mr. Collins.....................................          Nay   Mr. Polis.........................          Yea
Mr. Byrne.......................................          Nay
Mr. Newhouse....................................          Nay
Mr. Buck........................................          Nay
Ms. Cheney......................................          Nay
Mr. Sessions, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

      SUMMARY OF THE AMENDMENTS TO H.R 720 IN PART A MADE IN ORDER

    1. Soto (FL): Reinstates the FRCP 11(c)(2) safe harbor 
provision to allow parties to avoid penalties by withdrawing or 
correcting the claims within 14 days from when the alleged 
violation of rule 11(b) becomes known, anytime up until the end 
of the discovery period. (10 minutes)
    2. Jackson Lee (TX): Strikes provision mandating the award 
of reasonable attorney's fees and costs, restoring judicial 
discretion to award such fees and costs, when warranted. (10 
minutes)
    3. Conyers (MI): Exempts from the bill civil actions 
alleging any violation of a constitutional or civil right (10 
minutes)
    4. Jeffries (NY): Exempts actions pertaining to 
whistleblowers (10 minutes)

     SUMMARY OF THE AMENDMENTS TO H.R. 985 IN PART B MADE IN ORDER

    1. Goodlatte (VA): MANAGER'S Strikes the prohibition on the 
use of the same class counsel if the named plaintiff is a 
present or former client, or has a contractual relationship 
with, the class counsel. Carves out private securities 
litigation class actions from the conflict of interest and stay 
of discovery sections, gives federal courts 90 days to review 
the sufficiency of the allegations verification submissions 
made in the section on multi-district litigation, and makes 
other technical, conforming, and clarifying changes. (10 
minutes)
    2. Deutch (FL): Strikes the provision on conflicts of 
interest. (10 minutes)
    3. Deutch (FL): Strikes the fee determination based on 
equitable relief provision. (10 minutes)
    4. Soto (FL): Strikes section 1721 to allow discovery to 
proceed while motions are pending. (10 minutes)
    5. Johnson, Hank (GA): Exempts civil actions alleging 
fraud. (10 minutes)
    6. Conyers (MI): Exempts civil rights actions from the 
bill's class action provisions. (10 minutes)
    7. Jackson Lee (TX): Replaces the substantive text of the 
bill with a requirement that the bankruptcy asbestos trust 
report quarterly an aggregate list of demands received and 
payments made. (10 minutes)
    8. Espaillat (NY): Exempts a claimant who is or has been 
living in public housing or any dwelling unit for which rental 
assistance provided under section 8. (10 minutes)

          PART A--TEXT OF AMENDMENTS TO H.R. 720 MADE IN ORDER

1. An Amendment To Be Offered by Representative Soto of Florida or His 
                   Designee, Debatable for 10 Minutes

  Page 3, strike line 11 and all that follows through line 13, 
and insert the following:
          (2) in paragraph (2)--
                  (A) by inserting after ``be presented to the 
                court if'' the following: ``discovery has not 
                been completed and if'' ; and
                  (B) by striking ``within 21 days'' and 
                inserting ``within 14 days''; and
                              ----------                              


2. An Amendment To Be Offered by Representative Jackson Lee of Texas or 
                 Her Designee, Debatable for 10 Minutes

  Page 3, beginning on line 19, strike ``shall consist of an 
order to pay'' and all that follows through ``reasonable 
expenses incurred'' on line 20, and insert ``may consist of an 
order to pay the reasonable expenses incurred by the party or 
parties''.
                              ----------                              


3. An Amendment To Be Offered by Representative Conyers Jr. of Michigan 
               or His Designee, Debatable for 10 Minutes

  Add, at the end of the bill, the following:

SEC. 3. PROTECTING ACTIONS PERTAINING TO CONSTITUTIONAL CLAIMS OR CIVIL 
                    RIGHTS.

  Nothing in this Act, or the amendments made by this Act, 
shall be construed to apply to actions alleging any violation 
of a right protected by the Constitution or any civil right 
protected by law.
                              ----------                              


4. An Amendment To Be Offered by Representative Jeffries of New York or 
                 His Designee, Debatable for 10 Minutes

  Add, at the end of the bill, the following:

SEC. 3. PROTECTING ACTIONS PERTAINING TO WHISTLEBLOWERS.

  Nothing in this Act, or the amendments made by this Act, 
shall be construed to apply to actions brought by an 
individual, or individuals, under Federal whistleblower laws, 
Federal anti-retaliation laws, or any Federal laws which 
protect reporting government misconduct or malfeasance.

          PART B--TEXT OF AMENDMENTS TO H.R. 985 MADE IN ORDER

 1. An Amendment To Be Offered by Representative Goodlatte of Virginia 
               or His Designee, Debatable for 10 Minutes

  Page 4, line 12, strike ``of,'' and all that follows through 
line 15, and insert ``or employee of''.
  Page 4, insert after line 19 the following:
  ``(d) Exception.--This section shall not apply to a private 
action brought as a class action that is subject to section 
27(a) of the Securities Act of 1933 (15 U.S.C. 77z-1(a)) or 
section 21D(a) of the Securities Exchange Act of 1934 (15 
U.S.C. 78u-4(a)).''.
  Page 8, line 14, add at the end the following: ``This section 
shall not apply to a private action brought as a class action 
that is subject to section 27(a) of the Securities Act of 1933 
(15 U.S.C. 77z-1(a)) or section 21D(a) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78u-4(a)).''.
  Page 9, line 6, strike ``amended--'' and all that follows 
through line 12 and inserting the following: ``amended by 
inserting after subsection (e) the following:''.
  Page 9, line 13, strike ``(d)'' and insert ``(f)''.
  Page 9, line 16, insert ``commenced in a State court'' before 
``in which''.
  Page 10, line 2, strike ``defendants'' and insert 
``plaintiffs''.
  Page 10, line 3, strike ``plaintiffs'' and insert 
``defendants''.
  Page 10, line 9, strike ``The court'' and insert ``Except as 
provided in paragraph (4), the court''.
  Page 10, line 14, insert after ``section 1332(a).'' the 
following:
          ``(4) The court shall retain jurisdiction over a 
        claim that does not satisfy the jurisdictional 
        requirements of section 1332(a) if--
                  ``(A) the claim is so related to the claims 
                that satisfy the jurisdictional requirements of 
                section 1332(a) that they form part of the same 
                case or controversy under Article III of the 
                United States Constitution; and
                  ``(B) the plaintiff consents to the removal 
                of the claim.''.
  Page 11, line 7, strike ``30 days'' and insert ``90 days''.
  Page 11, line 19, strike ``any trial in any civil action'' 
and insert ``a trial in a civil action''.
  Page 11, line 21, strike ``to the civil action'' and insert 
``to that civil action''.
  Page 11, line 21, strike ``to trial of'' and all that follows 
through ``to be tried'' on line 22.
  Page 12, line 4, insert after ``provided that'' the 
following: ``the order is applicable to one or more civil 
actions seeking redress for personal injury and that''.
  Page 12, line 8, strike ``1447(e)'' and insert ``1447(d)''.
  Page 12, strike line 15, and all that follows through 
``requirement.'' on line 25, and insert the following:
  ``(l) Ensuring Proper Recovery for Plaintiffs.--A plaintiff 
who asserts personal injury claims in any civil action 
transferred to or directly filed in coordinated or consolidated 
pretrial proceedings conducted pursuant to subsection (b) shall 
receive not less than 80 percent of any monetary recovery 
obtained for those claims by settlement, judgment, or 
otherwise, subject to the satisfaction of any liens for medical 
services provided to the plaintiff related to those claims. The 
judge or judges to whom the coordinated or consolidated 
pretrial proceedings have been assigned shall have jurisdiction 
over any disputes regarding compliance with this 
requirement.''.
                              ----------                              


 2. An Amendment To Be Offered by Representative Deutch of Florida or 
                 His Designee, Debatable for 10 Minutes

  Page 3, strike line 22, and insert the following: ``In a 
class action''.
  Page 4, strike line 9, and all that follows through line 19.
                              ----------                              


 3. An Amendment To Be Offered By Representative Deutch of Florida or 
                 His Designee, Debatable for 10 Minutes

  Page 6, strike line 1 and all that follows through line 8.
                              ----------                              


4. An Amendment To Be Offered by Representative Soto of Florida or His 
                   Designee, Debatable for 10 Minutes

  Page 8, strike line 7 and all that follows though line 14 
(and amend the amendment to the table of contents on page 9 
after line 3 accordingly).
                              ----------                              


 5. An Amendment To Be Offered by Representative Johnson of Georgia or 
                 His Designee, Debatable for 10 Minutes

  Page 8, line 21, insert after ``Civil Procedure.'' the 
following (and amend the amendment to the table of contents on 
page 9 after line 3 accordingly):

``Sec. 1724. Applicability

  ``Sections 1716 through 1723 shall not apply in the case of 
any civil action alleging fraud.''.
                              ----------                              


6. An Amendment To Be Offered by Representative Conyers Jr. of Michigan 
               or His Designee, Debatable for 10 Minutes

  Page 8, line 25, insert after ``Civil Procedure.'' the 
following (and amend the amendment to the table of contents on 
page 9 after line 3 accordingly):

``Sec. 1724. Applicability

  ``Sections 1716 through 1723 shall not apply in the case of 
any civil action alleging a violation of a civil right.''.
                              ----------                              


7. An Amendment To Be Offered by Representative Jackson Lee of Texas or 
                 Her Designee, Debatable for 10 Minutes

  Beginning on page 13, strike line 19 and all that follows 
through line 15 on page 14, and insert the following:
          ``(8) A trust described in paragraph (2) shall file 
        with the bankruptcy court, not later than 60 days after 
        the end of every quarter, a report that shall be made 
        available on the court's public docket and with respect 
        to each such reporting period contains an aggregate 
        list of demands received and an aggregate list of 
        payments made.''.
                              ----------                              


 8. An Amendment To Be Offered by Representative Espaillat of New York 
               or His Designee, Debatable for 10 Minutes

  Page 13, line 21, insert ``subject to subparagraph (C),'' 
after ``(A)''.
  Page 14, line 6, strike ``and'' at the end.
  Page 14, line 7, insert ``subject to subparagraph (C),'' 
after ``(B)''.
  Page 14, line 15, strike the close quotation marks and the 
period at the end, and insert ``; and''.
  Page 14, after line 15, insert the following:
                  ``(C) not comply with subparagraphs (A) and 
                (B) with respect to such claimant who is or has 
                been living in public housing (as such term is 
                defined in section 3(b) of the United States 
                Housing Act of 1937 (42 U.S.C. 1437a(b))) or 
                any dwelling unit for which rental assistance 
                is provided under section 8 of such Act (42 
                U.S.C. 1437f).''.

                                  [all]