Fraudulent Joinder Prevention Act of 2016

Bill: 114-hr-3624
Sponsor: Rep. Buck, Ken [R-CO-4]
Introduced: 2015-09-28 in the House
Policy area: Law
Subjects: Civil actions and liability
Evidence and witnesses
Federal district courts
Fraud offenses and financial crimes
Judicial procedure and administration
State and local courts

Summary:
action_date: 2015-09-28
text: 

Fraudulent Joinder Prevention Act of 2015

 
This bill amends procedures under which federal courts consider a motion to remand back to a state court a case that was removed from a state court to federal court. 
 
The bill allows a motion for remand, and any opposition to such a motion, to include affidavits or other evidence: (1) showing a plausible claim for relief against each nondiverse defendant, or the lack thereof; or (2) indicating a good faith intention to prosecute the action against each nondiverse defendant or to seek a joint judgment, or the lack of such a good faith intent.
 
Federal courts must deny a motion to remand if they find that the complaint does not state such a plausible claim for relief against a nondiverse defendant under applicable state law or that there is no good faith intention to prosecute the action against a nondiverse defendant or to seek a joint judgment.

action_date: 2016-02-16
text: 

Fraudulent Joinder Prevention Act of 2016

 
(Sec. 2) This bill amends procedures under which federal courts determine whether a case that was removed from a state court to a federal court on the basis of a diversity of citizenship among the parties may be remanded back to state court upon a motion opposed on fraudulent joinder grounds that: (1) one or more defendants are citizens of the same state as one or more plaintiffs, or (2) one or more defendants properly joined and served are citizens of the state in which the action was brought.
 
Joinder of such defendants is fraudulent if the court finds:
 
 
 actual fraud in the pleading of jurisdictional facts, 
 
 
 
state law would not plausibly impose liability on each defendant,
 
 
 
 state or federal law bars all claims in the complaint against all such defendants, or 
 
 
 
 no good faith intention to prosecute the action against all such defendants or to seek a joint judgment. 
 
In determining whether to grant or deny such a motion for remand, the court: (1) may permit pleadings to be amended; and (2) must consider the pleadings, affidavits, and other evidence submitted by the parties.
 
A federal court that finds joinder to be fraudulent must: (1) dismiss without prejudice the claims against defendants found to be fraudulently joined, and (2) deny the motion for remand. 

action_date: 2016-02-25
text: 

Fraudulent Joinder Prevention Act of 2016

 (Sec. 2) This bill amends procedures under which federal courts determine whether a case that was removed from a state court to a federal court on the basis of a diversity of citizenship among the parties may be remanded back to state court upon a motion opposed on fraudulent joinder grounds that: (1) one or more defendants are citizens of the same state as one or more plaintiffs, or (2) one or more defendants properly joined and served are citizens of the state in which the action was brought. 
Joinder of such a defendant is fraudulent if the court finds:
 
 
 actual fraud in the pleading of jurisdictional facts with respect to that defendant, 
 
 
 
state law would not plausibly impose liability on that defendant,
 
 
 
 state or federal law bars all claims in the complaint against that defendant, or 
 
 
 
 no good faith intention to prosecute the action against that defendant or to seek a joint judgment including that defendant. 
 
In determining whether to grant or deny such a motion for remand, the court: (1) may permit pleadings to be amended; and (2) must consider the pleadings, affidavits, and other evidence submitted by the parties.
 
A federal court finding that all such defendants have been fraudulently joined must: (1) dismiss without prejudice the claims against those defendants, and (2) deny the motion for remand. 


Legislative actions:
action_date: 2016-02-29
text: Received in the Senate and Read twice and referred to the Committee on the Judiciary.
action_date: 2016-02-25
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2016-02-25
text: On passage Passed by recorded vote: 229 - 189 (Roll no. 89).
action_date: 2016-02-25
text: Passed/agreed to in House: On passage Passed by recorded vote: 229 - 189 (Roll no. 89).
action_date: 2016-02-25
text: On motion to recommit with instructions Failed by recorded vote: 180 - 239 (Roll no. 88).
action_date: 2016-02-25
text: The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H917)
action_date: 2016-02-25
text: Floor summary: DEBATE - The House proceeded with 10 minutes of debate on the Watson Coleman motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment to add an exemption to the underlying bill for cases in which the plaintiff seeks relief in connection with the sexual abuse or exploitation of a minor.
action_date: 2016-02-25
text: Mrs. Watson Coleman moved to recommit with instructions to the Committee on the Judiciary. (consideration: CR H916; text: CR H916)
action_date: 2016-02-25
text: The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union. (text of amendment in the nature of a substitute: CR H913)
action_date: 2016-02-25
text: The previous question was ordered pursuant to the rule. (consideration: CR H916)
action_date: 2016-02-25
text: The House rose from the Committee of the Whole House on the state of the Union to report H.R. 3624.
action_date: 2016-02-25
text: UNFINISHED BUSINESS - The Chair announced that the unfinished business was the question of adoption of amendments which had been debated earlier and on which further proceedings had been postponed.
action_date: 2016-02-25
text: The House resolved into Committee of the Whole House on the state of the Union for further consideration.
action_date: 2016-02-25
text: Considered as unfinished business. (consideration: CR H915-918)
action_date: 2016-02-25
text: Committee of the Whole House on the state of the Union rises leaving H.R. 3624 as unfinished business.
action_date: 2016-02-25
text: On motion that the Committee rise Agreed to by voice vote.
action_date: 2016-02-25
text: Mr. Buck moved that the Committee rise.
action_date: 2016-02-25
text: POSTPONED PROCEEDINGS - At the conclusion of debate on the Cartwright amendement No. 2 the Chair put the question on adoption of the amendment and by voice vote annouced that the noes had prevailed. Mr. Cartwright demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until a time to be announced.
action_date: 2016-02-25
text: DEBATE - Pursuant to the provisions of H. Res 618, the Committee of the Whole proceeded with 10 minutes of debate on the Cartwright (PA) amendment No. 2.
action_date: 2016-02-25
text: DEBATE - Pursuant to the provisions of H.Res. 618, the Committee of the Whole proceeded with 10 minutes of debate on the Buck (CO) amendment No. 1.
action_date: 2016-02-25
text: GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 3624.
action_date: 2016-02-25
text: The Speaker designated the Honorable Garret Graves to act as Chairman of the Committee.
action_date: 2016-02-25
text: House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 618 and Rule XVIII.
action_date: 2016-02-25
text: Rule provides for consideration of H.R. 3624 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Specified amendments are in order. It shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the nature of a substitute recommended by the Committee on the Judiciary now printed in the bill.
action_date: 2016-02-25
text: Considered under the provisions of rule H. Res. 618. (consideration: CR H907-915)
action_date: 2016-02-24
text: Rule H. Res. 618 passed House.
action_date: 2016-02-23
text: Rules Committee Resolution H. Res. 618 Reported to House. Rule provides for consideration of H.R. 3624 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Specified amendments are in order. It shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the nature of a substitute recommended by the Committee on the Judiciary now printed in the bill.
action_date: 2016-02-16
text: Placed on the Union Calendar, Calendar No. 321.
action_date: 2016-02-16
text: Reported (Amended) by the Committee on Judiciary. H. Rept. 114-422.
action_date: 2016-02-16
text: Reported (Amended) by the Committee on Judiciary. H. Rept. 114-422.
action_date: 2016-02-03
text: Ordered to be Reported (Amended) by the Yeas and Nays: 13 - 10.
action_date: 2016-02-03
text: Committee Consideration and Mark-up Session Held.
action_date: 2016-01-29
text: Subcommittee on the Constitution and Civil Justice Discharged.
action_date: 2015-11-03
text: Referred to the Subcommittee on the Constitution and Civil Justice.
action_date: 2015-09-28
text: Referred to the House Committee on the Judiciary.
action_date: 2015-09-28
text: Introduced in House
action_date: 2015-09-28
text: Introduced in House