IIB 

111TH CONGRESS 

2D SESSION H. R. 4113 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 29, 2010 

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

AN ACT 

To amend title 28, United States Code, to clarify the 

jurisdiction of the Federal courts, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Federal Courts Jurisdiction and Venue Clarification Act 

4 of 2010’’. 

5 (b) TABLE OF CONTENTS.—The table of contents for 

6 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. 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. 

7 TITLE I—JURISDICTIONAL 

8 IMPROVEMENTS 

9 SEC. 101. TREATMENT OF RESIDENT ALIENS. 

10 Section 1332(a) of title 28, United States Code, is 

11 amended— 

12 (1) by striking the last sentence; and 

13 (2) in paragraph (2), by inserting after ‘‘foreign 

14 state’’ the following: ‘‘, except that the district 

15 courts shall not have original jurisdiction under this 

16 subsection of an action between citizens of a State 

17 and citizens or subjects of a foreign state who are 


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1 lawfully admitted for permanent residence in the 

2 United States and are domiciled in the same State’’. 

3 SEC. 102. CITIZENSHIP OF CORPORATIONS AND INSUR4 ANCE COMPANIES WITH FOREIGN CONTACTS. 

5 Section 1332(c)(1) of title 28, United States Code, 

6 is amended— 

7 (1) by striking ‘‘any State’’ and inserting 

8 ‘‘every State and foreign state’’; 

9 (2) by striking ‘‘the State’’ and inserting ‘‘the 

10 State or foreign state’’; and 

11 (3) by striking all that follows ‘‘party-defend12 ant,’’ and inserting ‘‘such insurer shall be deemed a 

13 citizen of— 

14 ‘‘(A) every State and foreign state of which 

15 the insured is a citizen; 

16 ‘‘(B) every State and foreign state by 

17 which the insurer has been incorporated; and 

18 ‘‘(C) the State or foreign state where the 

19 insurer has its principal place of business; 

20 and’’. 

21 SEC. 103. REMOVAL AND REMAND PROCEDURES. 

22 (a) ACTIONS REMOVABLE GENERALLY.—Section 

23 1441 of title 28, United States Code, is amended as fol24 lows: 


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1 (1) The section heading is amended by striking 

2 ‘‘Actions removable generally’’ and inserting 

3 ‘‘Removal of civil actions’’. 

4 (2) Subsection (a) is amended— 

5 (A) by striking ‘‘(a) Except’’ and inserting 

6 ‘‘(a) GENERALLY.—Except’’; and 

7 (B) by striking the last sentence; 

8 (3) Subsection (b) is amended to read as fol9 lows: 

10 ‘‘(b) REMOVAL BASED ON DIVERSITY OF CITIZEN11 SHIP.—(1) In determining whether a civil action is remov12 able on the basis of the jurisdiction under section 1332(a) 

13 of this title, the citizenship of defendants sued under ficti14 tious names shall be disregarded. 

15 ‘‘(2) A civil action otherwise removable solely on the 

16 basis of the jurisdiction under section 1332(a) of this title 

17 may not be removed if any of the parties in interest prop18 erly joined and served as defendants is a citizen of the 

19 State in which such action is brought.’’. 

20 (4) Subsection (c) is amended to read as fol21 lows: 

22 ‘‘(c) JOINDER OF FEDERAL LAW CLAIMS AND STATE

23 LAW CLAIMS.—(1) If a civil action includes— 


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1 ‘‘(A) a claim arising under the Constitution, 

2 laws, or treaties of the United States (within the 

3 meaning of section 1331 of this title), and 

4 ‘‘(B) a claim not within the original or supple5 mental jurisdiction of the district court or a claim 

6 that has been made nonremovable by statute, 

7 the entire action may be removed if the action would be 

8 removable without the inclusion of the claim described in 

9 subparagraph (B). 

10 ‘‘(2) Upon removal of an action described in para11 graph (1), the district court shall sever from the action 

12 all claims described in paragraph (1)(B) and shall remand 

13 the severed claims to the State court from which the ac14 tion was removed. Only defendants against whom a claim 

15 described in paragraph (1)(A) has been asserted are re16 quired to join in or consent to the removal under para17 graph (1).’’. 

18 (5) Subsection (d) is amended by striking ‘‘(d) 

19 Any’’ and inserting ‘‘(d) ACTIONS AGAINST FOR20 EIGN STATES.—Any’’. 

21 (6) Subsection (e) is amended by striking 

22 ‘‘(e)(1) Notwithstanding’’ and inserting ‘‘(e) 

23 MULTIPARTY, MULTIFORUM JURISDICTION.—(1) 

24 Notwithstanding’’. 

25 (7) Subsection (f) is amended— 


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1 (A) by striking ‘‘(f) The court’’ and insert2 ing ‘‘(f) DERIVATIVE REMOVAL JURISDIC3 TION.—The court’’; and 

4 (B) by striking ‘‘under this section’’ and 

5 inserting ‘‘under this title or other applicable 

6 law’’. 

7 (b) PROCEDURE FOR REMOVAL OF CIVIL ACTIONS.— 

8 Section 1446 of title 28, United States Code, is amended 

9 as follows: 

10 (1) The section heading is amended to read as 

11 follows: 

12 ‘‘§ 1446. Procedure for removal of civil actions’’. 

13 (2) Subsection (a) is amended— 

14 (A) by striking ‘‘(a) A defendant’’ and in15 serting ‘‘(a) GENERALLY.—A defendant’’; and 

16 (B) by striking ‘‘or criminal prosecution’’. 

17 (3) Subsection (b) is amended— 

18 (A) by striking ‘‘(b) The notice’’ and in19 serting ‘‘(b) REQUIREMENTS; GENERALLY.—(1) 

20 The notice’’; and 

21 (B) by striking the second paragraph and 

22 inserting the following: 

23 ‘‘(2)(A) When a civil action is removed solely under 

24 section 1441(a), all defendants who have been properly 


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1 joined and served must join in or consent to the removal 

2 of the action. 

3 ‘‘(B) Each defendant shall have 30 days after receipt 

4 by or service on that defendant of the initial pleading or 

5 summons described in paragraph (1) to file the notice of 

6 removal. 

7 ‘‘(C) If defendants are served at different times, and 

8 a later-served defendant files a notice of removal, any ear9 lier-served defendant may consent to the removal even 

10 though that earlier-served defendant did not previously 

11 initiate or consent to removal. 

12 ‘‘(3) Except as provided in subsection (c), if the case 

13 stated by the initial pleading is not removable, a notice 

14 of removal may be filed within thirty days after receipt 

15 by the defendant, through service or otherwise, of a copy 

16 of an amended pleading, motion, order or other paper 

17 from which it may first be ascertained that the case is 

18 one which is or has become removable.’’; 

19 (C) by striking subsection (c) and inserting 

20 the following: 

21 ‘‘(c) REQUIREMENTS; REMOVAL BASED ON DIVER22 SITY OF CITIZENSHIP.—(1) A case may not be removed 

23 under subsection (b)(3) on the basis of jurisdiction con24 ferred by section 1332 more than 1 year after commence25 ment of the action, unless the plaintiff has acted in bad 


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1 faith in order to prevent a defendant from removing the 

2 action. 

3 ‘‘(2) If removal of a civil action is sought on the basis 

4 of the jurisdiction conferred by section 1332(a), the sum 

5 demanded in good faith in the initial pleading shall be 

6 deemed to be the amount in controversy, except that— 

7 ‘‘(A) the notice of removal may assert the 

8 amount in controversy if the initial pleading seeks— 

9 ‘‘(i) nonmonetary relief; or 

10 ‘‘(ii) a money judgment, but the State 

11 practice either does not permit demand for a 

12 specific sum or permits recovery of damages in 

13 excess of the amount demanded; and 

14 ‘‘(B) removal of the action is proper on the 

15 basis of an amount in controversy asserted under 

16 subparagraph (A) if the district court finds, by the 

17 preponderance of the evidence, that the amount in 

18 controversy exceeds the amount specified in section 

19 1332(a). 

20 ‘‘(3)(A) If the case stated by the initial pleading is 

21 not removable solely because the amount in controversy 

22 does not exceed the amount specified in section 1332(a), 

23 information relating to the amount in controversy in the 

24 record of the State proceeding, or in responses to disVerDate Mar 15 2010 01:00 Oct 01, 2010 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H4113.RFS H4113

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1 covery, shall be treated as an ‘other paper’ under sub2 section (b)(3). 

3 ‘‘(B) If the notice of removal is filed more than 1 

4 year after commencement of the action and a finding is 

5 made that the plaintiff deliberately failed to disclose the 

6 actual amount in controversy to prevent removal, that 

7 finding shall be deemed bad faith under paragraph (1).’’. 

8 (4) Section 1446 is further amended— 

9 (A) in subsection (d), by striking ‘‘(d) 

10 Promptly’’ and inserting ‘‘(d) NOTICE TO AD11 VERSE PARTIES AND STATE COURT.—Prompt12 ly’’; 

13 (B) by striking ‘‘thirty days’’ each place it 

14 appears and inserting ‘‘30 days’’; 

15 (C) by striking subsection (e); and 

16 (D) in subsection (f), by striking ‘‘(f) With 

17 respect’’ and inserting ‘‘(e) COUNTERCLAIM IN

18 337 PROCEEDING.—With respect’’. 

19 (c) PROCEDURE FOR REMOVAL OF CRIMINAL AC20 TIONS.—Chapter 89 of title 28, United States Code, is 

21 amended by adding at the end the following new section: 

22 ‘‘§ 1454. Procedure for removal of criminal prosecu23 tions 

24 ‘‘(a) NOTICE OF REMOVAL.—A defendant or defend25 ants desiring to remove any criminal prosecution from a 


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1 State court shall file in the district court of the United 

2 States for the district and division within which such pros3 ecution is pending a notice of removal signed pursuant to 

4 Rule 11 of the Federal Rules of Civil Procedure and con5 taining a short and plain statement of the grounds for 

6 removal, together with a copy of all process, pleadings, and 

7 orders served upon such defendant or defendants in such 

8 action. 

9 ‘‘(b) REQUIREMENTS.—(1) A notice of removal of a 

10 criminal prosecution shall be filed not later than 30 days 

11 after the arraignment in the State court, or at any time 

12 before trial, whichever is earlier, except that for good 

13 cause shown the United States district court may enter 

14 an order granting the defendant or defendants leave to 

15 file the notice at a later time. 

16 ‘‘(2) A notice of removal of a criminal prosecution 

17 shall include all grounds for such removal. A failure to 

18 state grounds that exist at the time of the filing of the 

19 notice shall constitute a waiver of such grounds, and a 

20 second notice may be filed only on grounds not existing 

21 at the time of the original notice. For good cause shown, 

22 the United States district court may grant relief from the 

23 limitations of this paragraph. 

24 ‘‘(3) The filing of a notice of removal of a criminal 

25 prosecution shall not prevent the State court in which such 


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1 prosecution is pending from proceeding further, except 

2 that a judgment of conviction shall not be entered unless 

3 the prosecution is first remanded. 

4 ‘‘(4) The United States district court in which such 

5 notice is filed shall examine the notice promptly. If it 

6 clearly appears on the face of the notice and any exhibits 

7 annexed thereto that removal should not be permitted, the 

8 court shall make an order for summary remand. 

9 ‘‘(5) If the United States district court does not order 

10 the summary remand of such prosecution, it shall order 

11 an evidentiary hearing to be held promptly and, after such 

12 hearing, shall make such disposition of the prosecution as 

13 justice shall require. If the United States district court 

14 determines that removal shall be permitted, it shall so no15 tify the State court in which prosecution is pending, which 

16 shall proceed no further. 

17 ‘‘(c) WRIT OF HABEAS CORPUS.—If the defendant 

18 or defendants are in actual custody on process issued by 

19 the State court, the district court shall issue its writ of 

20 habeas corpus, and the marshal shall thereupon take such 

21 defendant or defendants into the marshal’s custody and 

22 deliver a copy of the writ to the clerk of such State 

23 court.’’. 

24 (d) CONFORMING AMENDMENTS.— 


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1 (1) The table of sections for chapter 89 of title 

2 28, United States Code, is amended— 

3 (A) in the item relating to section 1441, by 

4 striking ‘‘Actions removable generally’’ and in5 serting ‘‘Removal of civil actions’’; 

6 (B) in the item relating to section 1446, by 

7 inserting ‘‘of civil actions’’ after ‘‘removal’’; and 

8 (C) by adding at the end the following new 

9 item: 

‘‘1454. Procedure for removal of criminal prosecutions.’’. 

10 (2) Section 1453(b) of title 28, United States 

11 Code, is amended by striking ‘‘1446(b)’’ and insert12 ing ‘‘1446(c)(1)’’. 

13 SEC. 104. EFFECTIVE DATE. 

14 (a) IN GENERAL.—Subject to subsection (b), the 

15 amendments made by this title shall take effect upon the 

16 expiration of the 30-day period beginning on the date of 

17 the enactment of this Act, and shall apply to any action 

18 or prosecution commenced on or after such effective date. 

19 (b) TREATMENT OF CASES REMOVED TO FEDERAL

20 COURT.—For purposes of subsection (a), an action or 

21 prosecution commenced in State court and removed to 

22 Federal court shall be deemed to commence on the date 

23 the action or prosecution was commenced, within the 

24 meaning of State law, in State court. 


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1 TITLE II—VENUE AND 

2 TRANSFER IMPROVEMENTS 

3 SEC. 201. SCOPE AND DEFINITIONS. 

4 (a) IN GENERAL.—Chapter 87 of title 28, United 

5 States Code, is amended by inserting before section 1391 

6 the following new section: 

7 ‘‘§ 1390. Scope 

8 ‘‘(a) VENUE DEFINED.—As used in this chapter, the 

9 term ‘venue’ refers to the geographic specification of the 

10 proper court or courts for the litigation of a civil action 

11 that is within the subject-matter jurisdiction of the district 

12 courts in general, and does not refer to any grant or re13 striction of subject-matter jurisdiction providing for a civil 

14 action to be adjudicated only by the district court for a 

15 particular district or districts. 

16 ‘‘(b) EXCLUSION OF CERTAIN CASES.—Except as 

17 otherwise provided by law, this chapter shall not govern 

18 the venue of a civil action in which the district court exer19 cises the jurisdiction conferred by section 1333, except 

20 that such civil actions may be transferred between district 

21 courts as provided in this chapter. 

22 ‘‘(c) CLARIFICATION REGARDING CASES REMOVED

23 FROM STATE COURTS.—This chapter shall not determine 

24 the district court to which a civil action pending in a State 

25 court may be removed, but shall govern the transfer of 


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1 an action so removed as between districts and divisions 

2 of the United States district courts.’’. 

3 (b) CONFORMING AMENDMENT.—The table of sec4 tions at the beginning of chapter 87 of title 28, United 

5 States Code, is amended by inserting before the item relat6 ing to section 1391 the following new item: 

‘‘Sec. 1390. Scope.’’. 

7 SEC. 202. VENUE GENERALLY. 

8 Section 1391 of title 28, United States Code, is 

9 amended as follows: 

10 (1) By striking subsections (a) through (d) and 

11 inserting the following: 

12 ‘‘(a) APPLICABILITY OF SECTION.—Except as other13 wise provided by law— 

14 ‘‘(1) this section shall govern the venue of all 

15 civil actions brought in district courts of the United 

16 States; and 

17 ‘‘(2) the proper venue for a civil action shall be 

18 determined without regard to whether the action is 

19 local or transitory in nature. 

20 ‘‘(b) VENUE IN GENERAL.—A civil action may be 

21 brought in— 

22 ‘‘(1) a judicial district in which any defendant 

23 resides, if all defendants are residents of the State 

24 in which the district is located; 


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1 ‘‘(2) a judicial district in which a substantial 

2 part of the events or omissions giving rise to the 

3 claim occurred, or a substantial part of property 

4 that is the subject of the action is situated; or 

5 ‘‘(3) if there is no district in which an action 

6 may otherwise be brought as provided in this sec7 tion, any judicial district in which any defendant is 

8 subject to the court’s personal jurisdiction with re9 spect to such action. 

10 ‘‘(c) RESIDENCY.—For all venue purposes— 

11 ‘‘(1) a natural person, including an alien law12 fully admitted for permanent residence in the United 

13 States, shall be deemed to reside in the judicial dis14 trict in which that person is domiciled; 

15 ‘‘(2) a party with the capacity to sue and be 

16 sued in its common name under applicable law, 

17 whether or not incorporated, shall be deemed to re18 side, if a defendant, in any judicial district in which 

19 such defendant is subject to the court’s personal ju20 risdiction with respect to the civil action in question 

21 and, if a plaintiff, only in the judicial district in 

22 which it maintains its principal place of business; 

23 and 

24 ‘‘(3) a defendant not resident in the United 

25 States may be sued in any judicial district, and the 


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1 joinder of such a defendant shall be disregarded in 

2 determining where the action may be brought with 

3 respect to other defendants. 

4 ‘‘(d) RESIDENCY OF CORPORATIONS IN STATES

5 WITH MULTIPLE DISTRICTS.—For purposes of venue 

6 under this chapter, in a State which has more than one 

7 judicial district and in which a defendant that is a cor8 poration is subject to personal jurisdiction at the time an 

9 action is commenced, such corporation shall be deemed to 

10 reside in any district in that State within which its con11 tacts would be sufficient to subject it to personal jurisdic12 tion if that district were a separate State, and, if there 

13 is no such district, the corporation shall be deemed to re14 side in the district within which it has the most significant 

15 contacts.’’. 

16 (2) In subsection (e)— 

17 (A) in the first paragraph— 

18 (i) by striking ‘‘(1)’’, ‘‘(2)’’, and ‘‘(3)’’ 

19 and inserting ‘‘(A)’’, ‘‘(B)’’, and ‘‘(C)’’, re20 spectively; and 

21 (ii) by striking ‘‘(e) A civil action’’ 

22 and inserting the following: 

23 ‘‘(e) ACTIONS WHERE DEFENDANT IS OFFICER OR

24 EMPLOYEE OF THE UNITED STATES.— 

25 ‘‘(1) IN GENERAL.—A civil action’’; and 


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1 (B) in the second undesignated paragraph 

2 by striking ‘‘The summons and complaint’’ and 

3 inserting the following: 

4 ‘‘(2) SERVICE.—The summons and complaint’’. 

5 (3) In subsection (f), by striking ‘‘(f) A civil ac6 tion’’ and inserting ‘‘(f) CIVIL ACTIONS AGAINST A

7 FOREIGN STATE.—A civil action’’. 

8 (4) In subsection (g), by striking ‘‘(g) A civil 

9 action’’ and inserting ‘‘(g) MULTIPARTY, 

10 MULTIFORUM LITIGATION.—A civil action’’. 

11 SEC. 203. REPEAL OF SECTION 1392. 

12 Section 1392 of title 28, United States Code, and the 

13 item relating to that section in the table of sections at 

14 the beginning of chapter 87 of such title, are repealed. 

15 SEC. 204. CHANGE OF VENUE. 

16 Section 1404 of title 28, United States Code, is 

17 amended— 

18 (1) in subsection (a), by inserting before the pe19 riod at the end the following: ‘‘or to any district or 

20 division to which all parties have consented’’; and 

21 (2) in subsection (d), by striking ‘‘As used in 

22 this section’’ and inserting ‘‘Transfers from a dis23 trict court of the United States to the District Court 

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1 lands shall not be permitted under this section. As 

2 otherwise used in this section,’’. 

3 SEC. 205. EFFECTIVE DATE. 

4 The amendments made by this title— 

5 (1) shall take effect upon the expiration of the 

6 30-day period beginning on the date of the enact7 ment of this Act; and 

8 (2) shall apply to— 

9 (A) any action that is commenced in a 

10 United States district court on or after such ef11 fective date; and 

12 (B) any action that is removed from a 

13 State court to a United States district court 

14 and that had been commenced, within the 

15 meaning of State law, on or after such effective 

16 date. 

Passed the House of Representatives September 28, 

2010. 

Attest: LORRAINE C. MILLER, 

Clerk. 


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