SEC. 104. REDUCTION IN TROUBLED ASSET PURCHASES 
THAT MAY BE OUTSTANDING AS TARP FUNDS 
ARE REPAID. 
Section 106(d) of the Emergency Economic Stabiliza-
tion Act of 2008 is amended by adding at the end the 
following new sentence: ‘‘The maximum amount of pur-
chase authority for troubled assets that is authorized to 
be outstanding at any one time under section 115 shall 
be reduced by the amount of any payment into the Treas-
ury under the preceding sentence after the date of the en-
actment of the Job Creation Act of 2010.’’. 
TITLE II—FEDERAL RULES OF 
CIVIL PROCEDURE IMPROVE-
MENTS 
SEC. 201. ATTORNEY ACCOUNTABILITY. 
Rule 11(c) of the Federal Rules of Civil Procedure 
is amended— 
(1) by amending the first sentence to read as 
follows: ‘‘If a pleading, motion, or other paper is 
signed in violation of this rule, the court, upon mo-
tion or upon its own initiative, shall impose upon the 
attorney, law firm, or parties that have violated this 
subdivision or are responsible for the violation, an 
appropriate sanction, which may include an order to 
pay the other party or parties for the reasonable ex-
penses incurred as a direct result of the filing of the 
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pleading, motion, or other paper, that is the subject 
of the violation, including a reasonable attorney’s 
fee.’’; 
(2) in paragraph (1)(A)— 
(A) by striking ‘‘Rule 5’’ and all that fol-
lows through ‘‘corrected.’’ and inserting ‘‘Rule 
5.’’; and 
(B) by striking ‘‘the court may award’’ 
and inserting ‘‘the court shall award’’; and 
(3) in paragraph (2), by striking ‘‘shall be lim-
ited to what is sufficient’’ and all that follows 
through the end of the paragraph (including sub-
paragraphs (A) and (B)) and inserting ‘‘shall be suf-
ficient to deter repetition of such conduct or com-
parable conduct by others similarly situated, and to 
compensate the parties that were injured by such 
conduct. The sanction may consist of an order to 
pay to the party or parties the amount of the rea-
sonable expenses incurred as a direct result of the 
filing of the pleading, motion, or other paper that is 
the subject of the violation, including a reasonable 
attorney’s fee.’’. 
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SEC. 202. APPLICABILITY OF RULE 11 TO STATE CASES AF-
FECTING INTERSTATE COMMERCE. 
In any civil action in State court, the court, upon mo-
tion, shall determine within 30 days after the filing of such 
motion whether the action substantially affects interstate 
commerce. Such court shall make such determination 
based on an assessment of the costs to the interstate econ-
omy, including the loss of jobs, were the relief requested 
granted. If the court determines such action substantially 
affects interstate commerce, the provisions of Rule 11 of 
the Federal Rules of Civil Procedure shall apply to such 
action. 
SEC. 203. PREVENTION OF FORUM-SHOPPING. 
(a) IN GENERAL.—Subject to subsection (b), a per-
sonal injury claim filed in State or Federal court may be 
filed only in the State and, within that State, in the county 
(or if there is no State court in the county, the nearest 
county where a court of general jurisdiction is located), 
or Federal district in which— 
(1) the person bringing the claim, including an 
estate in the case of a decedent and a parent or 
guardian in the case of a minor or incompetent— 
(A) resides at the time of filing; or 
(B) resided at the time of the alleged in-
jury; 
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(2) the alleged injury or circumstances giving 
rise to the personal injury claim allegedly occurred; 
(3) the defendant’s principal place of business 
is located, if the defendant is a corporation; or 
(4) the defendant resides, if the defendant is an 
individual. 
(b) 
DETERMINATION
OF
MOST
APPROPRIATE 
FORUM.—If a person alleges that the injury or cir-
cumstances giving rise to the personal injury claim oc-
curred in more than one county (or Federal district), the 
trial court shall determine which State and county (or 
Federal district) is the most appropriate forum for the 
claim. If the court determines that another forum would 
be the most appropriate forum for a claim, the court shall 
dismiss the claim. Any otherwise applicable statute of limi-
tations shall be tolled beginning on the date the claim was 
filed and ending on the date the claim is dismissed under 
this subsection. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘personal injury claim’’— 
(A) means a civil action brought under 
State law by any person to recover for a per-
son’s personal injury, illness, disease, death, 
mental or emotional injury, risk of disease, or 
other injury, or the costs of medical monitoring 
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or surveillance (to the extent such claims are 
recognized under State law), including any de-
rivative action brought on behalf of any person 
on whose injury or risk of injury the action is 
based by any representative party, including a 
spouse, parent, child, or other relative of such 
person, a guardian, or an estate; 
(B) does not include a claim brought as a 
class action; and 
(C) does not include a claim against a 
debtor in a case pending under title 11 of the 
United States Code that is a personal injury 
tort or wrongful death claim within the mean-
ing of section 157(b)(5) of title 28, United 
States Code. 
(2) The term ‘‘person’’ means any individual, 
corporation, company, association, firm, partnership, 
society, joint stock company, or any other entity, but 
not any governmental entity. 
(3) The term ‘‘State’’ includes the District of 
Columbia, the Commonwealth of Puerto Rico, the 
United States Virgin Islands, Guam, and any other 
territory or possession of the United States. 
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(d) APPLICABILITY.—This section applies to any per-
sonal injury claim filed in Federal or State court on or 
after the date of the enactment of this Act. 
SEC. 204. RULE OF CONSTRUCTION. 
Nothing in section 202 or in the amendments made 
by section 201 shall be construed to bar or impede the 
assertion or development of new claims or remedies under 
Federal, State, or local civil rights law. 
SEC. 205. THREE-STRIKES RULE FOR SUSPENDING ATTOR-
NEYS WHO COMMIT MULTIPLE RULE 11 VIO-
LATIONS. 
(a) MANDATORY SUSPENSION.—Whenever a Federal 
district court determines that an attorney has violated 
Rule 11 of the Federal Rules of Civil Procedure, the court 
shall determine the number of times that the attorney has 
violated that rule in that Federal district court during that 
attorney’s career. If the court determines that the number 
is three or more, the Federal district court— 
(1) shall suspend that attorney from the prac-
tice of law in that Federal district court for one 
year; and 
(2) may suspend that attorney from the prac-
tice of law in that Federal district court for any ad-
ditional period that the court considers appropriate. 
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(b) APPEAL; STAY.—An attorney has the right to ap-
peal a suspension under subsection (a). While such an ap-
peal is pending, the suspension shall be stayed. 
(c) REINSTATEMENT.—To be reinstated to the prac-
tice of law in a Federal district court after completion of 
a suspension under subsection (a), the attorney involved 
must first petition the court for reinstatement under such 
procedures and conditions as the court may prescribe. 
SEC. 206. PRESUMPTION OF RULE 11 VIOLATION FOR RE-
PEATEDLY RELITIGATING SAME ISSUE. 
Whenever a party presents to a Federal court a 
pleading, written motion, or other paper, that includes a 
claim or defense that the party has already litigated and 
lost on the merits in any forum in final decisions not sub-
ject to appeal on three consecutive occasions, and the 
claim or defense, respectively, involves the same plaintiff 
and the same defendant on each occasion, there shall be 
a rebuttable presumption that the presentation of such 
paper is in violation of Rule 11 of the Federal Rules of 
Civil Procedure. 
SEC. 207. ENHANCED SANCTIONS FOR DOCUMENT DE-
STRUCTION IN PENDING FEDERAL COURT 
PROCEEDINGS. 
Whoever willfully and intentionally influences, ob-
structs, or impedes, or attempts to influence, or obstruct, 
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or impede, a pending Federal court proceeding through 
the willful and intentional destruction of documents 
sought pursuant to the rules of such Federal court pro-
ceeding and highly relevant to that proceeding— 
(1) shall be punished with mandatory civil sanc-
tions of a degree commensurate with the civil sanc-
tions available under Rule 11 of the Federal Rules 
of Civil Procedure, in addition to any other civil 
sanctions that otherwise apply; and 
(2) shall be held in contempt of court; and if 
an attorney, referred to one or more appropriate 
State bar associations for disciplinary proceedings. 
SEC. 208. BAN ON CONCEALMENT OF UNLAWFUL CONDUCT. 
(a) IN GENERAL.—In any Rule 11 of the Federal 
Rules of Civil Procedure proceeding, a court may not order 
that a court record not be disclosed unless the court makes 
a finding of fact that identifies the interest that justifies 
the order and determines that interest outweighs any in-
terest in the public health and safety that the court deter-
mines would be served by disclosing the court record. 
(b) APPLICABILITY.—This section applies to any 
record formally filed with a court, but shall not include 
any records subject to— 
(1) the attorney-client privilege or any other 
privilege recognized under Federal or State law that 
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grants the right to prevent disclosure of certain in-
formation unless the privilege has been waived; or 
(2) applicable State or Federal laws that pro-
tect the confidentiality of crime victims, including 
victims of sexual abuse. 
Æ 
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