[112th Congress Public Law 63]
[From the U.S. Government Printing Office]
[[Page 757]]
FEDERAL COURTS JURISDICTION AND VENUE CLARIFICATION ACT OF 2011
[[Page 125 STAT. 758]]
Public Law 112-63
112th Congress
An Act
To amend title 28, United States Code, to clarify the jurisdiction of
the Federal courts, and for other purposes. <<NOTE: Dec. 7,
2011 - [H.R. 394]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Federal Courts
Jurisdiction and Venue Clarification Act of 2011. 28 USC 1 note.>>
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'';
[[Page 125 STAT. 759]]
(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''.
[[Page 125 STAT. 760]]
(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) <<NOTE: Notice.>> 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) <<NOTE: Deadline.>> 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) <<NOTE: Notice. Deadline.>> 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
[[Page 125 STAT. 761]]
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) <<NOTE: Notice. Time period.>> 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. <<NOTE: 28 USC 1455. Notice.>> 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) <<NOTE: Deadline.>> 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) <<NOTE: Examination.>> 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 <<NOTE: Notification.>> require. If the
[[Page 125 STAT. 762]]
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. <<NOTE: 28 USC 1332 note. Time
period. Applicability.>> 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. <<NOTE: 28 USC 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.
[[Page 125 STAT. 763]]
``(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.
[[Page 125 STAT. 764]]
``(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. <<NOTE: 28 USC 1390 note.>> EFFECTIVE DATE.
The amendments made by this title--
(1) <<NOTE: Time period.>> shall take effect upon the
expiration of the 30-day period beginning on the date of the
enactment of this Act; and
(2) <<NOTE: Applicability.>> shall apply to--
(A) any action that is commenced in a United States
district court on or after such effective date; and
[[Page 125 STAT. 765]]
(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.
Approved December 7, 2011.
LEGISLATIVE HISTORY--H.R. 394 (S. 1636):
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HOUSE REPORTS: No. 112-10 (Comm. on the Judiciary).
CONGRESSIONAL RECORD, Vol. 157 (2011):
Feb. 28, considered and passed House.
Oct. 31, considered and passed Senate, amended.
Nov. 18, House concurred in Senate amendments with an
amendment.
Nov. 30, Senate concurred in House amendment.
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