[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1100 Introduced in House (IH)]
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 Federal
jurisdiction of certain multiparty, multiforum civil actions.
Be it enacted by the Senate and House of Representatives 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:
``Sec. 1368. Multiparty, multiforum jurisdiction
``(a) 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 $50,000 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) 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 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 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.
``(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 sections at the beginning
of chapter 85 of title 28, United States Code, is amended by adding at
the end the following 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 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 and the choice of law
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 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 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.''.
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 inserting in lieu
thereof ``(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 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 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 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 subsection and the
district court to which it is removed or transferred under section
1407(i) 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 and the choice of law 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 and the choice of law
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 1368 and an action 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 authority of
the district court to transfer or dismiss an action 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:
Sec. 1659. Choice of law in multiparty, multiforum actions
``(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 injury;
``(3) the principal places of business or domiciles of the
parties;
``(4) the danger of creating unnecessary incentives for
forum shopping; and
``(5) whether the choice of law would be reasonably
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 applied 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
designated 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 subsection (b) shall continue to
apply.''.
(b) Conforming Amendment.--The table of sections at the beginning
of chapter 111 of title 28, United States Code, is amended by adding at
the end the following new item:
``1659. Choice of law in multiparty, multiforum actions.''.
SEC. 7. SERVICE OF PROCESS.
(a) Other Than Subpoenas.--(1) 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 1368 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.''.
(2) 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.''.
(b) Service of Subpoenas.--(1) 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 1368 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.''.
(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.
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