Fraudulent Joinder Prevention Act of 2016

Bill: 114-hr-3624
Sponsor: full_name: Rep. Buck, Ken [R-CO-4]
Introduced: 2015-09-28
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
Latest action: action_date: 2016-02-29
text: Received in the Senate and Read twice and referred to the Committee on the Judiciary.

Summaries:
action_date: 2015-09-28
action_desc: Introduced in House
text: <p><b>Fraudulent Joinder Prevention Act of 2015</b></p> <p>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. </p>  <p>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.</p> <p>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.</p>

action_date: 2016-02-16
action_desc: Reported to House with amendment(s)
text: <p><b>Fraudulent Joinder Prevention Act of 2016</b></p> <p>(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.</p> <p>Joinder of such defendants is fraudulent if the court finds:</p> <ul> <li> actual fraud in the pleading of jurisdictional facts, </li> </ul> <ul> <li>state law would not plausibly impose liability on each defendant,</li> </ul> <ul> <li> state or federal law bars all claims in the complaint against all such defendants, or </li> </ul> <ul> <li> no good faith intention to prosecute the action against all such defendants or to seek a joint judgment. </ul> <p>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.</p> <p>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. </p>

action_date: 2016-02-25
action_desc: Passed House amended
text: <p><b>Fraudulent Joinder Prevention Act of 2016</b></p> (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. <p>Joinder of such a defendant is fraudulent if the court finds:</p> <ul> <li> actual fraud in the pleading of jurisdictional facts with respect to that defendant, </li> </ul> <ul> <li>state law would not plausibly impose liability on that defendant,</li> </ul> <ul> <li> state or federal law bars all claims in the complaint against that defendant, or </li> </ul> <ul> <li> no good faith intention to prosecute the action against that defendant or to seek a joint judgment including that defendant. </ul> <p>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.</p> <p>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. </p>

tv_txt: I 114th CONGRESS 1st Session H. R. 3624 IN THE HOUSE OF REPRESENTATIVES September 28, 2015 Mr. Buck introduced the following bill; which was referred to the Committee on the Judiciary A BILL To amend title 28, United States Code, to prevent fraudulent joinder.

1. Short title This Act may be cited as the Fraudulent Joinder Prevention Act of 2015 . 2. Prevention of fraudulent joinder Section 1447(c) of title 28, United States Code, is amended by adding at the end the following: A motion for remand, and any opposition thereto, may include affidavit or other evidence showing a plausible claim for relief against each nondiverse defendant, or the lack thereof, or 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. The district court shall deny a motion to remand if it finds that the complaint does not state a plausible claim for relief against a nondiverse defendant under applicable State law or there is no good faith intention to prosecute the action against a nondiverse defendant or to seek a joint judgment. .

tv_txt: IIB 114th CONGRESS 2d Session H. R. 3624 IN THE SENATE OF THE UNITED STATES February 29, 2016 Received; read twice and referred to the Committee on the Judiciary AN ACT To amend title 28, United States Code, to prevent fraudulent joinder.

1. Short title This Act may be cited as the Fraudulent Joinder Prevention Act of 2016 . 2. Prevention of fraudulent joinder Section 1447 of title 28, United States Code, is amended by adding at the end the following: (f) Fraudulent joinder (1) This subsection shall apply to any case in which— (A) a civil action is removed solely on the basis of the jurisdiction conferred by section 1332(a); (B) a motion to remand is made on the ground that— (i) one or more defendants are citizens of the same State as one or more plaintiffs; or (ii) one or more defendants properly joined and served are citizens of the State in which the action was brought; and (C) the motion is opposed on the ground that the joinder of the defendant or defendants described in subparagraph (B) is fraudulent. (2) The joinder of a defendant described in paragraph (1)(B) is fraudulent if the court finds that— (A) there is actual fraud in the pleading of jurisdictional facts with respect to that defendant; (B) based on the complaint and the materials submitted under paragraph (3), it is not plausible to conclude that applicable State law would impose liability on that defendant; (C) State or Federal law clearly bars all claims in the complaint against that defendant; or (D) objective evidence clearly demonstrates that there is no good faith intention to prosecute the action against that defendant or to seek a joint judgment including that defendant. (3) In determining whether to grant or deny a motion under paragraph (1)(B), the court may permit the pleadings to be amended, and shall consider the pleadings, affidavits, and other evidence submitted by the parties. (4) If the court finds that all defendants described in paragraph (1)(B) have been fraudulently joined under paragraph (2), it shall dismiss without prejudice the claims against those defendants and shall deny the motion described in paragraph (1)(B). .

Passed the House of Representatives February 25, 2016. Karen L. Haas, Clerk

tv_txt: IB 114th CONGRESS 2d Session H. R. 3624 IN THE HOUSE OF REPRESENTATIVES AN ACT To amend title 28, United States Code, to prevent fraudulent joinder.

1. Short title This Act may be cited as the Fraudulent Joinder Prevention Act of 2016 . 2. Prevention of fraudulent joinder Section 1447 of title 28, United States Code, is amended by adding at the end the following: (f) Fraudulent joinder (1) This subsection shall apply to any case in which— (A) a civil action is removed solely on the basis of the jurisdiction conferred by section 1332(a); (B) a motion to remand is made on the ground that— (i) one or more defendants are citizens of the same State as one or more plaintiffs; or (ii) one or more defendants properly joined and served are citizens of the State in which the action was brought; and (C) the motion is opposed on the ground that the joinder of the defendant or defendants described in subparagraph (B) is fraudulent. (2) The joinder of a defendant described in paragraph (1)(B) is fraudulent if the court finds that— (A) there is actual fraud in the pleading of jurisdictional facts with respect to that defendant; (B) based on the complaint and the materials submitted under paragraph (3), it is not plausible to conclude that applicable State law would impose liability on that defendant; (C) State or Federal law clearly bars all claims in the complaint against that defendant; or (D) objective evidence clearly demonstrates that there is no good faith intention to prosecute the action against that defendant or to seek a joint judgment including that defendant. (3) In determining whether to grant or deny a motion under paragraph (1)(B), the court may permit the pleadings to be amended, and shall consider the pleadings, affidavits, and other evidence submitted by the parties. (4) If the court finds that all defendants described in paragraph (1)(B) have been fraudulently joined under paragraph (2), it shall dismiss without prejudice the claims against those defendants and shall deny the motion described in paragraph (1)(B). .

Passed the House of Representatives February 25, 2016. Karen L. Haas, Clerk.

tv_txt: IB Union Calendar No. 321 114th CONGRESS 2d Session H. R. 3624 [Report No. 114–422] IN THE HOUSE OF REPRESENTATIVES September 28, 2015 Mr. Buck introduced the following bill; which was referred to the Committee on the Judiciary February 16, 2016 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on September 28, 2015 A BILL To amend title 28, United States Code, to prevent fraudulent joinder.

1. Short title This Act may be cited as the Fraudulent Joinder Prevention Act of 2016 . 2. Prevention of fraudulent joinder Section 1447 of title 28, United States Code, is amended by adding at the end the following: (f) Fraudulent joinder (1) This subsection shall apply to any case in which— (A) a civil action is removed solely on the basis of the jurisdiction conferred by section 1332(a); (B) a motion to remand is made on the ground that— (i) one or more defendants are citizens of the same State as one or more plaintiffs; or (ii) one or more defendants properly joined and served are citizens of the State in which the action was brought; and (C) the motion is opposed on the ground that the joinder of the defendant or defendants described in subparagraph (B) is fraudulent. (2) The joinder of the defendant or defendants described in paragraph (1) (B) is fraudulent if the court finds that— (A) there is actual fraud in the pleading of jurisdictional facts; (B) based on the complaint and the materials submitted under paragraph (3), it is not plausible to conclude that applicable State law would impose liability on each defendant described in paragraph (1)(B); (C) State or Federal law clearly bars all claims in the complaint against all defendants described in paragraph (1)(B); or (D) objective evidence clearly demonstrates that there is no good faith intention to prosecute the action against all defendants described in paragraph (1)(B) or to seek a joint judgment. (3) In determining whether to grant or deny a motion under paragraph (1)(B), the court may permit the pleadings to be amended, and shall consider the pleadings, affidavits, and other evidence submitted by the parties. (4) If the court finds fraudulent joinder under paragraph (2), it shall dismiss without prejudice the claims against the defendant or defendants found to have been fraudulently joined and shall deny the motion described in paragraph (1)(B). .

February 16, 2016 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed