I
103D CONGRESS
1ST SESSION
H. R. 1100
To amend title 28, United States Code, to provide for Federal jurisdiction
of certain multiparty, multiforum civil actions.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 24, 1993
Mr. HUGHES (for himself and Mr. MOORHEAD) introduced the following bill;
which was referred to the Committee on the Judiciary
A BILL
To amend title 28, United States Code, to provide for Fed-
eral jurisdiction of certain multiparty, multiforum civil
actions.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Multiparty,
Multiforum Jurisdiction Act of 1993’’.
SEC. 2. JURISDICTION OF DISTRICT COURTS.
(a) BASIS OF JURISDICTION.—Chapter 85 of title 28,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 1368. Multiparty, multiforum jurisdiction
‘‘(a) The district courts shall have original jurisdic-
tion of any civil action involving minimal diversity between
adverse parties that arises from a single accident, where
at least 25 natural persons have either died or incurred
injury in the accident at a discrete location and, in the
case of injury, the injury has resulted in damages which
exceed $50,000 per person, exclusive of interest and costs,
if—
‘‘(1) a defendant resides in a State and a sub-
stantial part of the accident took place in another
State or other location, regardless of whether that
defendant is also a resident of the State where a
substantial part of the accident took place;
‘‘(2) any two defendants reside in different
States, regardless of whether such defendants are
also residents of the same State or States; or
‘‘(3) substantial parts of the accident took place
in different States.
‘‘(b) For purposes of this section—
‘‘(1) minimal diversity exists between adverse
parties if any party is a citizen of a State and any
adverse party is a citizen of another State, a citizen
or subject of a foreign state, or a foreign state as
defined in section 1603(a) of this title;
‘‘(2) a corporation is deemed to be a citizen of
any State, and a citizen or subject of any foreign
state, in which it is incorporated or has its principal
place of business, and is deemed to be a resident of
any State in which it is incorporated or licensed to
do business or is doing business;
‘‘(3) the term ‘injury’ means—
‘‘(A) physical harm to a natural person;
and
‘‘(B) physical damage to or destruction of
tangible property, but only if physical harm de-
scribed in subparagraph (A) exists;
‘‘(4) the term ‘accident’ means a sudden acci-
dent, or a natural event culminating in an accident,
that results in death or injury incurred at a discrete
location by at least 25 natural persons; and
‘‘(5) the term ‘State’ includes the District of
Columbia, the Commonwealth of Puerto Rico, and
the territories or possessions of the United States.
‘‘(c) In any action in a district court which is or could
have been brought, in whole or in part, under this section,
any person with a claim arising from the accident de-
scribed in subsection (a) shall be permitted to intervene
as a party plaintiff in the action, even if that person could
not have brought an action in a district court as an origi-
nal matter.
‘‘(d) A district court in which an action under this
section is pending shall promptly notify the judicial panel
on multidistrict litigation of the pendency of the action.’’.
(b) A CONFORMING AMENDMENT.—The table of sec-
tions at the beginning of chapter 85 of title 28, United
States Code, is amended by adding at the end the follow-
ing new item:
‘‘1368. Multiparty, multiforum jurisdiction.’’.
SEC. 3. VENUE.
Section 1391 of title 28, United States Code, is
amended by adding at the end the following:
‘‘(g) A civil action in which jurisdiction of the district
court is based upon section 1368 of this title may be
brought in any district in which any defendant resides or
in which a substantial part of the accident giving rise to
the action took place.’’.
SEC. 4. MULTIDISTRICT LITIGATION.
Section 1407 of title 28, United States Code, is
amended by adding at the end the following:
‘‘(i)(1) In actions transferred under this section when
jurisdiction is or could have been based, in whole or in
part, on section 1368 of this title, the transferee district
court may, notwithstanding any other provision of this
section, retain actions so transferred for the determination
of liability and punitive damages. An action retained for
the determination of liability shall be remanded to the dis-
trict court from which the action was transferred, or to
the State court from which the action was removed, for
the determination of damages, other than punitive dam-
ages, unless the court finds, for the convenience of parties
and witnesses and in the interest of justice, that the action
should be retained for the determination of damages.
‘‘(2) Any remand under paragraph (1) shall not be
effective until 60 days after the transferee court has is-
sued an order determining liability and has certified its
intention to remand some or all of the transferred actions
for the determination of damages. An appeal with respect
to the liability determination and the choice of law deter-
mination of the transferee court may be taken during that
60-day period to the court of appeals with appellate juris-
diction over the transferee court. In the event a party files
such an appeal, the remand shall not be effective until the
appeal has been finally disposed of. Once the remand has
become effective, the liability determination and the choice
of law determination shall not be subject to further review
by appeal or otherwise.
‘‘(3) An appeal with respect to determination of puni-
tive damages by the transferee court may be taken, during
the 60-day period beginning on the date the order making
the determination is issued, to the court of appeals with
jurisdiction over the transferee court.
‘‘(4) Any decision under this subsection concerning
remand for the determination of damages shall not be
reviewable by appeal or otherwise.
‘‘(5) Nothing in this subsection shall restrict the au-
thority of the transferee court to transfer or dismiss an
action on the ground of inconvenient forum.’’.
SEC. 5. REMOVAL OF ACTIONS.
Section 1441 of title 28, United States Code, is
amended—
(1) in subsection (e) by striking out ‘‘(e) The
court to which such civil action is removed’’ and in-
serting in lieu thereof ‘‘(f) The court to which a civil
action is removed under this section’’; and
(2) by inserting after subsection (d) the follow-
ing new subsection;
(e)(1) Notwithstanding the provisions of subsection
(b) of this section, a defendant in a civil action in a State
court may remove the action to the district court of the
United States for the district and division embracing the
place where the action is pending if—
‘‘(A) the action could have been brought in a
United States district court under section 1368 of
this title, or
‘‘(B) the defendant is a party to an action
which is or could have been brought, in whole or in
part, under section 1368 in a United States district
court and arises from the same accident as the ac-
tion in State court, even if the action to be removed
could not have been brought in a district court as
an original matter.
The removal of an action under this subsection shall be
made in accordance with section 1446 of this title, except
that a notice of removal may also be filed before trial of
the action in State court within 30 days after the date
on which the defendant first becomes a party to an action
under section 1368 in a United States district court that
arises from the same accident as the action in State court,
or at a later time with leave of the district court.
‘‘(2) Whenever an action is removed under this sub-
section and the district court to which it is removed or
transferred under section 1407(i) has made a liability de-
termination requiring further proceedings as to damages,
the district court shall remand the action to the State
court from which it had been removed for the determina-
tion of damages, unless the court finds that, for the con-
venience of parties and witnesses and in the interest of
justice, the action should be retained for the determination
of damages.
‘‘(3) Any remand under paragraph (2) shall not be
effective until 60 days after the district court has issued
an order determining liability and has certified its inten-
tion to remand the removed action for the determination
of damages. An appeal with respect to the liability deter-
mination and the choice of law determination of the dis-
trict court may be taken during that 60-day period to the
court of appeals with appellate jurisdiction over the dis-
trict court. In the event a party files such an appeal, the
remand shall not be effective until the appeal has been
finally disposed of. Once the remand has become effective,
the liability determination and the choice of law deter-
mination shall not be subject to further review by appeal
or otherwise.
‘‘(4) Any decision under this subsection concerning
remand for the determination of damages shall not be
reviewable by appeal or otherwise.
‘‘(5) An action removed under this subsection shall
be deemed to be an action under section 1368 and an ac-
tion in which jurisdiction is based on section 1368 of this
title for purposes of this section and sections 1407, 1659,
1697, and 1785 of this title.
‘‘(6) Nothing in this subsection shall restrict the au-
thority of the district court to transfer or dismiss an ac-
tion on the ground of inconvenient forum.’’.
SEC. 6. CHOICE OF LAW.
(a) DETERMINATION BY THE COURT.—Chapter 111
of title 28, United States Code, is amended by adding at
the end the following new section:
§ 1659. Choice of law in multiparty, multiforum ac-
tions
‘‘(a) In an action which is or could have been
brought, in whole or in part, under section 1368 of this
title, the district court in which the action is brought or
to which it is removed shall determine the source of the
applicable substantive law, except that if an action is
transferred to another district court, the transferee court
shall determine the source of the applicable substantive
law. In making this determination, a district court shall
not be bound by the choice of law rules of any State, and
the factors that the court may consider in choosing the
applicable law include—
‘‘(1) the place of the injury;
‘‘(2) the place of the conduct causing the in-
jury;
‘‘(3) the principal places of business or
domiciles of the parties;
‘‘(4) the danger of creating unnecessary incen-
tives for forum shopping; and
‘‘(5) whether the choice of law would be reason-
ably foreseeable to the parties.
The factors set forth in paragraphs (1) through (5) shall
be evaluated according to their relative importance with
respect to the particular action. If good cause is shown
in exceptional cases, including constitutional reasons, the
court may allow the law of more than one State to be ap-
plied with respect to a party, claim, or other element of
an action.
‘‘(b) The district court making the determination
under subsection (a) shall enter an order designating the
single jurisdiction whose substantive law is to be applied
in all other actions under section 1368 arising from the
same accident as that giving rise to the action in which
the determination is made. The substantive law of the des-
ignated jurisdiction shall be applied to the parties and
claims in all such actions before the court, and to all other
elements of each action, except where Federal law applies
or the order specifically provides for the application of the
law of another jurisdiction with respect to a party, claim,
or other element of an action.
‘‘(c) In an action remanded to another district court
or a State court under section 1407(i)(1) or 1441(e)(2)
of this title, the district court’s choice of law under sub-
section (b) shall continue to apply.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions at the beginning of chapter 111 of title 28, United
be served at any place within the United States, or any-
where outside the United States if otherwise permitted by
law.’’.
(2) The table of sections at the beginning of chapter
117 of title 28, United States Code, is amended by adding
at the end the following new item:
‘‘1785. Subpoenas in multiparty, multiforum actions.’’.
SEC. 8. EFFECTIVE DATE.
The amendments made by this Act shall apply to a
civil action if the accident giving rise to the cause of action
occurred on or after the 90th day after the date of the
enactment of this Act.
Æ