To amend title 28, United States Code, to allow a judge to whom a case is transferred to retain jurisdiction over certain multidistrict litigation cases for trial, and to provide for Federal jurisdiction of certain multiparty, multiforum civil actions.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Multidistrict, Multiparty, 
Multiforum Trial Jurisdiction Act of 2001''.

SEC. 2. MULTIDISTRICT LITIGATION.

    Section 1407 of title 28, United States Code, is amended--
            (1) in the third sentence of subsection (a), by inserting 
        ``or ordered transferred to the transferee or other district 
        under subsection (i)'' after ``terminated''; and
            (2) by adding at the end the following new subsection:
    ``(i)(1) Subject to paragraph (2) and except as provided in 
subsection (j), any action transferred under this section by the panel 
may be transferred for trial purposes, by the judge or judges of the 
transferee district to whom the action was assigned, to the transferee 
or other district in the interest of justice and for the convenience of 
the parties and witnesses.
    ``(2) Any action transferred for trial purposes under paragraph (1) 
shall be remanded by the panel for the determination of compensatory 
damages to the district court from which it was transferred, unless the 
court to which the action has been transferred for trial purposes also 
finds, for the convenience of the parties and witnesses and in the 
interests of justice, that the action should be retained for the 
determination of compensatory damages.''.

SEC. 3. MULTIPARTY, MULTIFORUM JURISDICTION OF DISTRICT COURTS.

    (a) Basis of Jurisdiction.--
            (1) In general.--Chapter 85 of title 28, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 1369. Multiparty, multiforum jurisdiction
    ``(a) In General.--The district courts shall have original 
jurisdiction 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 $150,000 per person, exclusive of interest and 
costs, if--
            ``(1) a defendant resides in a State and a substantial 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) Limitation of Jurisdiction of District Courts.--The district 
court shall abstain from hearing any civil action described in 
subsection (a) in which--
            ``(1) the substantial majority of all plaintiffs are 
        citizens of a single State of which the primary defendants are 
        also citizens; and
            ``(2) the claims asserted will be governed primarily by the 
        laws of that State.
    ``(c) Special Rules and Definitions.--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 described in 
                subparagraph (A) exists;
            ``(4) the term `accident' means a sudden accident, 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 any territory or 
        possession of the United States.
    ``(d) Intervening Parties.--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 described 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 original matter.
    ``(e) Notification of Judicial Panel on Multidistrict Litigation.--
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.''.
            (2) Conforming amendment.--The table of sections at the 
        beginning of chapter 85 of title 28, United States Code, is 
        amended by adding at the end the following new item:

``1369. Multiparty, multiforum jurisdiction.''.
    (b) 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 1369 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.''.
    (c) Multidistrict Litigation.--Section 1407 of title 28, United 
States Code, as amended by section 2 of this Act, is further amended by 
adding at the end the following:
    ``(j)(1) In actions transferred under this section when 
jurisdiction is or could have been based, in whole or in part, on 
section 1369 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 district 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 damages, 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 issued 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 of the transferee court may be 
taken during that 60-day period to the court of appeals with appellate 
jurisdiction 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 shall not be subject to further review by 
appeal or otherwise.
    ``(3) An appeal with respect to determination of punitive 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 authority of 
the transferee court to transfer or dismiss an action on the ground of 
inconvenient forum.''.
    (d) Removal of Actions.--Section 1441 of title 28, United States 
Code, is amended--
            (1) in subsection (e) by striking ``(e) The court to which 
        such civil action is removed'' and inserting ``(f) The court to 
        which a civil action is removed under this section''; and
            (2) by inserting after subsection (d) the following 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 1369 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 
        1369 in a United States district court and arises from the same 
        accident as the action 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 1369 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 subsection and the 
district court to which it is removed or transferred under section 
1407(j) has made a liability determination 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 determination 
of damages, unless the court finds that, for the convenience 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 intention to remand the removed action 
for the determination of damages. An appeal with respect to the 
liability determination of the district court may be taken during that 
60-day period to the court of appeals with appellate jurisdiction over 
the district 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 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 1369 and an action in which jurisdiction is 
based on section 1369 of this title for purposes of this section and 
sections 1407, 1697, and 1785 of this title.
    ``(6) Nothing in this subsection shall restrict the authority of 
the district court to transfer or dismiss an action on the ground of 
inconvenient forum.''.
    (e) Service of Process.--
            (1) Other than subpoenas.--(A) Chapter 113 of title 28, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 1697. Service in multiparty, multiforum actions
    ``When the jurisdiction of the district court is based in whole or 
in part upon section 1369 of this title, process, other than subpoenas, 
may be served at any place within the United States, or anywhere 
outside the United States if otherwise permitted by law.''.
            (B) The table of sections at the beginning of chapter 113 
        of title 28, United States Code, is amended by adding at the 
        end the following new item:

``1697. Service in multiparty, multiforum actions.''.
            (2) Service of subpoenas.--(A) Chapter 117 of title 28, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 1785. Subpoenas in multiparty, multiforum actions
    ``When the jurisdiction of the district court is based in whole or 
in part upon section 1369 of this title, a subpoena for attendance at a 
hearing or trial may, if authorized by the court upon motion for good 
cause shown, and upon such terms and conditions as the court may 
impose, be served at any place within the United States, or anywhere 
outside the United States if otherwise permitted by law.''.
            (B) 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. 4. EFFECTIVE DATE.

    (a) Section 2.--The amendments made by section 2 shall apply to any 
civil action pending on or brought on or after the date of the 
enactment of this Act.
    (b) Section 3.--The amendments made by section 3 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.

            Passed the House of Representatives March 14, 2001.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

Summary: Multidistrict, Multiparty, Multiforum Trial Jurisdiction Act of 2001 - Amends the Federal judicial code to allow a civil action transferred for coordinated or consolidated pretrial proceedings (multidistrict litigation) to be transferred to the transferee or other district for trial purposes in the interest of justice and for the convenience of the parties and witnesses. Directs that any such action transferred for trial purposes be remanded to the district court from which it was transferred for the determination of compensatory damages, unless the court also finds that the action should be retained for the determination of compensatory damages for the convenience of the parties and witnesses and in the interests of justice.Grants Federal district courts original jurisdiction over civil actions arising out of a single accident that results in the death or injury of 25 or more natural persons, provided the injury has resulted in damages which exceed $150,000 per person and minimal diversity of citizenship (as prescribed in this Act) exists. Directs the district court to abstain from hearing any such action in which: (1) the substantial majority of all plaintiffs are citizens of a single State of which the primary defendants are also citizens; and (2) the claims asserted will be governed primarily by the laws of that State. Permits any person with a claim arising from such an accident to intervene as a party plaintiff, even if that person could not have brought an action in district court as an original matter. Requires a federal district court in which such an action is pending to notify the judicial panel on multidistrict litigation. Authorizes venue for such action in any district in which a defendant resides or in which a substantial part of the accident occurred.Permits a district court to retain such actions for the determination of liability and punitive damages. Calls for remand of determinations of damages other than punitive damages, including the possibility of remand to State courts in which actions were originally filed, unless the Federal court finds that it would serve the convenience of parties and witnesses and the interests of justice to retain the action for the determination of such damages as well.Permits removal of actions which could have been brought in district court under the above provisions from State to U.S. district courts. Authorizes removal before trial within 30 days of a defendant's becoming a party to a suit under this Act, or at a later time with leave of the district court. Establishes a presumption in favor of discretionary remand to State courts for damages determinations after rulings on liability.Authorizes nationwide service of process and, upon a showing of good cause, nationwide service of subpoenas with regard to actions under this Act.